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One major determining factor in deciding where to buy or rent a home is cost of living. A recently released study by GOBankingRates.com ranks the cities with costs of living that climbed the most in 2016—a sign of a housing market heating up.

Researchers based the ranking on the increase in the “cost of living index,” which includes food, rent and transportation, and the increase in income needed to “live comfortably.” The ranking includes cities where both the cost of living index increased and the income needed increased.

The top five cities:

  1. Nashville, Tenn.
    Cost of Living Index Increase: 8.61 points
    Income Needed Increase: $9,135
  1. Seattle, Wash.
    Cost of Living Index Increase: 7.32 points
    Income Needed Increase: $3,190
  1. Louisville, Ky.
    Cost of Living Index Increase: 4.49 points
    Income Needed Increase: $2,066
  1. Austin, Texas
    Cost of Living Index Increase: 3.84 points
    Income Needed Increase: $1,407
  1. Jacksonville, Fla.
    Cost of Living Index Increase: 3.36 points
    Income Needed Increase: $2,095

Source: GOBankingRates.com

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