In a country as large and diverse as the United States, the cost of living can vary widely from one state to another. Ranging from resorts in the Pacific to bustling metropolitan areas in the Northeast, the variation in living costs extends beyond geography and climate, affected by factors like housing, healthcare, and transportation.
Our everyday necessities come with a cost and in agglomerated settings, where competition for resources is high, these costs can skyrocket. Our analysis, using the Cost of Living Index, breaks down where your dollar might struggle the most. This Index casts the average U.S. cost of living as a baseline of 100, making it easier to visualize and comprehend the relative costs across different states.
- The title of the most expensive state in the U.S. goes to Hawaii, with a Cost of Living Index of 184, far surpassing the national baseline.
- Following Hawaii are Massachusetts, California, New York, and Alaska. Notably, three out of the top five most expensive states are located on coasts.
- Eastern states, particularly in the Northeast region, tend to have a higher Cost of Living Index. Seven of the top 10 states are positioned in the eastern half of the U.S.
- The South and the Midwest generally have a lower Cost of Living Index. Out of the five states with a lowest Cost of Living Index, four are located in the South - Mississippi, Alabama, Georgia, and Arkansas.
- Although Mississippi ranks last with an index of 85, it is important to consider that even this number is very close to the baseline, indicating that no state comes significantly under the average U.S. cost of living.
