The True Cost of Working From Home
A comprehensive analysis of what remote work really costs in America's 50 largest cities—and why your ZIP code matters more than you think.
Key Findings
NYC Tops the List
Remote workers in New York City pay $5,180 per year in WFH-related costs—the highest of any major U.S. city.
Housing is the Driver
Across all 50 cities, dedicated workspace costs account for 61% of total WFH expenses on average.
Internet Varies Widely
Broadband costs range from $600 to $1,200 per year, with the highest rates in Colorado and lowest in California.
Oklahoma is Cheapest
Tulsa ($1,621/year) and Oklahoma City ($1,639/year) offer the most affordable WFH environments in the country.
Complete City Rankings
Annual work-from-home costs across America's 50 largest cities
| Rank | City | Total Annual Cost | Housing % | Internet % | Primary Driver | WFH Penalty |
|---|---|---|---|---|---|---|
| 1 | New York City, NY | $5,180 | 84% | 15% | Housing | +$3,559 |
| 2 | San Francisco, CA | $3,897 | 77% | 22% | Housing | +$2,276 |
| 3 | Boston, MA | $3,889 | 74% | 24% | Housing | +$2,268 |
| 4 | San Diego, CA | $3,288 | 68% | 30% | Housing | +$1,667 |
| 5 | San Jose, CA | $3,215 | 71% | 27% | Housing | +$1,594 |
| 6 | Los Angeles, CA | $3,050 | 69% | 29% | Housing | +$1,429 |
| 7 | Long Beach, CA | $3,000 | 68% | 29% | Housing | +$1,379 |
| 8 | Oakland, CA | $2,991 | 69% | 28% | Housing | +$1,370 |
| 9 | Seattle, WA | $2,934 | 67% | 31% | Housing | +$1,313 |
| 10 | Washington, DC | $2,919 | 69% | 30% | Housing | +$1,298 |
| 11 | Chicago, IL | $2,834 | 71% | 28% | Housing | +$1,213 |
| 12 | Miami, FL | $2,772 | 71% | 28% | Housing | +$1,151 |
| 13 | Philadelphia, PA | $2,527 | 62% | 36% | Housing | +$906 |
| 14 | Sacramento, CA | $2,418 | 62% | 37% | Housing | +$797 |
| 15 | Colorado Springs, CO | $2,411 | 48% | 51% | Internet | +$790 |
| 16 | Baltimore, MD | $2,378 | 57% | 42% | Housing | +$757 |
| 17 | Tampa, FL | $2,361 | 62% | 36% | Housing | +$740 |
| 18 | Nashville, TN | $2,331 | 60% | 38% | Housing | +$710 |
| 19 | Portland, OR | $2,303 | 64% | 34% | Housing | +$682 |
| 20 | Denver, CO | $2,276 | 62% | 36% | Housing | +$655 |
| 21 | Atlanta, GA | $2,212 | 56% | 42% | Housing | +$591 |
| 22 | Phoenix, AZ | $2,189 | 53% | 45% | Housing | +$568 |
| 23 | Fresno, CA | $2,178 | 55% | 41% | Housing | +$557 |
| 24 | Minneapolis, MN | $2,171 | 61% | 37% | Housing | +$550 |
| 25 | Virginia Beach, VA | $2,148 | 58% | 41% | Housing | +$527 |
| 26 | Mesa, AZ | $2,132 | 54% | 44% | Housing | +$511 |
| 27 | Charlotte, NC | $2,110 | 56% | 42% | Housing | +$489 |
| 28 | Milwaukee, WI | $2,087 | 59% | 40% | Housing | +$466 |
| 29 | Dallas, TX | $2,049 | 57% | 41% | Housing | +$428 |
| 30 | Austin, TX | $2,034 | 59% | 40% | Housing | +$413 |
| 31 | Albuquerque, NM | $1,980 | 56% | 43% | Housing | +$359 |
| 32 | New Orleans, LA | $1,974 | 54% | 44% | Housing | +$353 |
| 33 | Las Vegas, NV | $1,969 | 55% | 44% | Housing | +$348 |
| 34 | Tucson, AZ | $1,960 | 52% | 46% | Housing | +$339 |
| 35 | Raleigh, NC | $1,959 | 57% | 41% | Housing | +$338 |
| 36 | Fort Worth, TX | $1,938 | 54% | 44% | Housing | +$317 |
| 37 | San Antonio, TX | $1,919 | 49% | 50% | Internet | +$298 |
| 38 | Detroit, MI | $1,892 | 55% | 42% | Housing | +$271 |
| 39 | Columbus, OH | $1,881 | 56% | 43% | Housing | +$260 |
| 40 | Arlington, TX | $1,878 | 53% | 45% | Housing | +$257 |
| 41 | Houston, TX | $1,878 | 52% | 46% | Housing | +$257 |
| 42 | Indianapolis, IN | $1,860 | 52% | 46% | Housing | +$239 |
| 43 | Jacksonville, FL | $1,832 | 57% | 41% | Housing | +$211 |
| 44 | El Paso, TX | $1,809 | 51% | 48% | Housing | +$188 |
| 45 | Memphis, TN | $1,807 | 49% | 49% | Internet | +$186 |
| 46 | Louisville, KY | $1,783 | 53% | 46% | Housing | +$162 |
| 47 | Omaha, NE | $1,754 | 53% | 46% | Housing | +$133 |
| 48 | Kansas City, MO | $1,750 | 56% | 42% | Housing | +$129 |
| 49 | Oklahoma City, OK | $1,639 | 49% | 50% | Internet | +$18 |
| 50 | Tulsa, OK | $1,621 | 48% | 50% | Internet | $0 |
The WFH Penalty
The "WFH Penalty" measures how much more it costs to work from home in a given city compared to Tulsa, Oklahoma—the lowest-cost market in our study.
Regional Breakdown
Average annual WFH costs by U.S. region
Methodology
This study quantifies the complete annual cost of maintaining a home office by combining three essential expenses: the implicit residential housing cost of dedicating space to work, broadband internet service, and incremental electricity for work equipment.
The "WFH Penalty" measures how much more it costs to work from home in a given city compared to Tulsa, Oklahoma—the lowest-cost market in the study.
🏠 Housing Component
Based on 50 sq ft of dedicated workspace at local residential rates per square foot. Data sourced from Zillow median rent data and calculated monthly.
📶 Internet Component
Average cost of 100+ Mbps broadband service by metro area. Data from BroadbandNow and FCC filings, verified against ISP pricing.
⚡ Electricity Component
Estimated incremental electricity for home office equipment (computer, monitor, lighting) at 8 hours/day, 250 days/year at local utility rates.
📊 Data Sources
Zillow Research (housing), BroadbandNow (internet), EIA (electricity), U.S. Census Bureau (city populations). All data as of Q4 2024.
Remote work may free you from the office, but it doesn't free you from local costs. Our analysis shows that where you live plays a much bigger role in the affordability of working from home than most people realize—and housing is by far the biggest driver.
Brent Singleton
Senior Director of Growth Marketing, allwhere
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