These Are the Most Expensive American States to Live In

By Christian Drerup Updated Jan 5, 9:32PM EST · Published Dec 29, 10:25AM EST

Quick Read

Housing costs in the 10 most expensive states range from 28% to 213% above the national average.
Hawaii ranks as the most expensive state with an 80.3% higher cost of living driven by housing costs 213% above average.
77% of Americans report anxiety about their financial future despite higher salaries in expensive regions.
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These Are the Most Expensive American States to Live In — © SevenMaps/Shutterstock.com

The cost of living in the United States is dramatically different across the many states. While some states are home to affordable housing, lower taxes, and modest everyday expenses, others demand a far higher price for shelter, access to jobs, amenities, and lifestyle factors. In these high-cost states, residents often struggle in the face of rising housing prices, high utility bills, and even extravagant costs for essentials like food, transportation, and healthcare.

What drives these expenses doesn’t come down to just one factor. A combination of factors contributes to cost. These include population density, economic opportunity, geography, and local policies. Areas that tend to have the highest costs include coastal locations, major metropolitan hubs, and states with limited housing. This article breaks down the most expensive American states to live in and explains why living in these places comes at such a premium.

To identify the most expensive states to live in, 24/7 Wall St. reviewed data from the Composite Cost of Living Index published by the Missouri Economic Research and Information Center. States and the District of Columbia are ranked based on their cost-of-living index in 2023 from the least to most expensive state to live in. The index is relative to the national average of 100, so lower values are cheaper and higher values are more expensive.

In addition to the overall cost of living index, MERIC provided cost of living in five consumer categories– groceries, housing, utilities, transportation, and health care. While housing is the cheapest category in the 27 least expensive states, it is the most expensive category in the 10 most expensive places, with housing costs ranging anywhere from 28% to 213% more expensive than the national average. Supplemental data on median household income and poverty rate came from the Census Bureau’s 2022 American Community survey, while regional annual inflation rate (consumer price index change) for February 2024 came from the Bureau of Labor Statistics.

This post was updated on December 29, 2025 to provide a history of range of living expenses across states.

Why We Are Mentioning This

Stressed young african american woman looking at paper bills.

Money and cost of living are big issues for many Americans, with 77% of the national population concerned about their financial future, according to a Mind Over Money survey by Capital One and The Decision Lab. Though living in high-cost areas generally means receiving a higher salary, this bump in income is not an option for all residents, including those who lack a high school or college degree.