22 States With the Highest Cost of Living. Americans Looking to Move State Borders, Beware
A high cost of living is quickly becoming an everyday concern for Americans. According to the U.S. Bureau of Labor Statistics, the consumer price index rose by about 0.4% in March of this year.
The cost of living continues to rise for Americans, but certain states have a higher cost of living than others. To determine which states have the highest cost of living, Forbes ran a study using public information from the Bureau of Labor Statistics, Zillow, Apartment List, U.S. Census Bureau, Kaiser Family Foundation, and Massachusetts Institute of Technology.
Forbes calculated the cost of living for the states listed below based on how much money Americans spend on healthcare, income taxes, food, monthly housing, rentals, mortgages, and transportation, comparing them to the average salary residents earn in each state.
1: Hawaii
Hawaii ranks at the top of the list for the highest cost of living. To live in Hawaii costs $55,491 a year on average. According to Forbes, Hawaiians have the lowest disposable income of all Americans, at only $5,929 per year.
2: Massachusetts
Massachusetts’s total cost of living is $53,860. Despite that being so high, the Bay State’s residents have an average disposable income of $22,740, the third highest in the US.
Based on data from Norada Real Estate Investments, Massachusetts’s cost of living index is 48.4% higher than the nation’s average.
3: California
It takes a pretty penny to live in California, given that Forbes estimates its residents spend $53,171 each year on basic living costs. That said, Californians’ $20,049 of total average disposable income is higher than residents of 35 other states get to enjoy.
The Missouri Economic Research and Information Center (MERIC) gives California a cost of living index score of 136.4, which is a hefty 36.4 points above the baseline of 100. Transportation and housing are the top two contributors to the high cost of living.
4: New York
According to Data Commons, The Big Apple has a population of around 8 million, making it the largest city in the US. New York’s annual cost of living averages $49,623, with a disposable income of $25,247, ranking it first in the nation for disposable income.
Housing expenses vary greatly according to where one lives in New York. For example, Manhattan has a 122% higher-than-average cost of living compared to other cities.
5: New Jersey
New Jersey’s total cost of living is $49,511, with a disposable income of $21,379. According to Rent Cafe, the Garden State’s housing is 30% higher than the national average, and utilities are 12% higher than the national average.
Although New Jersey has a high cost of living, one benefit is that the state’s healthcare is down by 2% compared to the national average.
6: Alaska
Alaska’s total cost of living is $48,670, most of which goes towards housing. The median sale price for an Alaskan house in February 2023 was $358,90. But in March 2024, prices went up by 5.7%.
Although Alaska has a high cost of living, its residents don’t have to pay state income tax. So, if you want to avoid paying state taxes, Alaska has your back on that front.
7: Maryland
The Free State’s cost of living averages $48,235 per year. Despite that high amount, Marylanders have an average of $21,515 in disposable income, ranking them ninth in the nation.
On average, Maryland’s bills are higher than the average by $6,594 per year. The state’s cost of living is 16% higher than the average, and its household expenses are 25.8% higher than the US average. According to Doxo Insights, household bills account for 32% of the income.
8: Washington
According to Forbes Advisor, Washington’s total cost of living is $47,231, and its disposable income is $25,119. The state has high transportation, health care, and housing costs.
The Evergreen State’s cost of living is 17% higher than the national average, with bills topping out at $6,212 higher per year than the US average.
9: Connecticut
Connecticuters shell out an average of $46,912 each year on basic living expenses, pocketing $22,398 in disposable income.
Household expenses in Connecticut are 20.8% higher than the national average. The high cost of groceries, transportation, utilities, and healthcare are factors in its high cost of living. The average household will spend $2,569 per month ($30,822 per year) on bills.
10: Oregon
Oregon’s total cost of living is $46,193. It ranked a painful 36th in the country for its disposable income, at $16,487. Residents spend approximately $6,039 on transportation costs.
According to Quicken Loans, Oregon has some of the highest property tax rates, adding to the already high expenses of owning a home.
11: Colorado
Colorado’s cost of living is $45,931, and its disposable income is $21,939. Colorado’s household expenses are 20.1% higher than the US average, and 34% of residents’ revenue goes toward household bills.
12: New Hampshire
$45,575 is the average amount of money it takes to cover the cost of living in New Hampshire. That leaves residents with only $16,975 in disposable income.
New Hampshirites may not pay income, sales, or property taxes, but MERIC points out that residents’ bills are still $4,270 higher per year than the US average. That means the average household pays $2,482 per month ($29,789 per year) towards bills.
13: Rhode Island
Rhode Islanders spend around $44,481 in annual living costs. On the bright side, they’re left with an average of $20,049 in total disposable income each year, which is higher than 36 other states.
Mortgages account for 33% of a Rhode Islander’s living costs.
14: Delaware
Delaware’s cost of living is $44,389, and its annual disposable income is $17,871. While necessities such as housing are 2% lower and utilities are 3% lower than in other parts of the US, other supplies such as groceries and clothing are 4% higher.Â
15: Vermont
Vermont’s overall living expenses are $43,927, making its cost of living index 14.9% higher than the national average.
The Green Mountain State’s expensive healthcare, at an average of $12,237.33, and high food costs of $4,700 contributed to this. Additionally, Vermont has income tax rates ranging from 6% to 8.5%.
16: Virginia
Virginia’s cost of living is $43,067. Nevertheless, Virginians have a high disposable income of $22,523, ranking them fifth in the nation.
Virginia’s yearly bills are $3,363 higher than the national average, making household bills account for 31% of their income.
17: Nevada
Nevada’s cost of living sounds relatively better at $41,630. However, because of how little the average Nevadan earns, they have a low disposable income of around $13,860. That ranks them 46th in the US for disposable income.
Household expenses in Nevada are 7.2% higher than the US average, and annual bills are $1,841 higher.
18: Minnesota
Minnesota’s cost of living averages $41,498, and its disposable income averages $22,142. Household expenses there are 4.2% higher than the US average.
Household bills account for 31% of Minnesotans’ household income, which is $86,752. In Minnesota, the average person pays around $ 2,216 monthly ($26,592 per year) on bills.
19: Illinois
The cost of living in Illinois totals $41,395, but the Prairie State’s disposable income ranks fourth in the nation at $22,535.
Illinois’s household expenses are 3.7 % higher than the US average, with an average income of $82,621.
20: Utah
Utah’s total living costs are $40,586, and its disposable income is $16,774. Utah’s typical housing value is $510,934, and its monthly mortgage payment is $3,053, placing it sixth among states with steep housing prices.
21: Florida
Florida, the home of Mickey and pristine sand beaches, has a total living cost of $40,512. The average household pays around $2,259 monthly ($27,104 per year) on bills, and 38% of income goes towards household bills.
22: Pennsylvania
Pennsylvania’s total cost of living is $40,066, with bills $1,250 lower per year than the US average. Household expenses in Pennsylvania are 4.9% less than the US average.
Nevertheless, utilities are 7% higher, and transportation is 8% higher.
Looking Ahead
Will the cost of living continue to rise? It’s impossible to say, but based on history, the answer is likely “yes.”
While no one knows how fast or high things will continue to rise, Americans can prepare by asking for a raise or looking for additional sources of income, building an emergency fund, and avoiding high-interest debt.
Navigating a High Cost of Living
According to the U.S. Bureau of Labor Statistics, the all-items index increased by 3.5% in the last 12 months, meaning that things like food, transportation, shelter, and medical care went up in price.
Being in a situation where the cost of living is high and disposable income is low means taking extra care to manage one’s finances. Try creating a budgeting strategy, reduce your utility use (shutting off lights and the faucet when you aren’t using them), and limit impulse buys.
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