13 States With the Highest Cost of Living

Living in the US is expensive, but costs can vary dramatically depending on the state where you live. Some states are more expensive than others, and the rankings usually change every year.

If you search the Internet for a list of states with the highest living costs, you will probably see similar results. However, living costs are subjective, and they depend on how you choose to live and how you choose to spend your money.

Hence, we looked at various published sources and listed 13 expensive states for most people regardless of lifestyle. Although there may be yearly fluctuations in ranking, we perceive these American states to be the most costly in no particular order.

1. California

One does not need to explain why California is one of the most expensive states in the US. In addition to the burgeoning entertainment industry, California is home to tech giants and startups, making it one of the most expensive places to live.

Most San Franciscans will vouch that they have been outpriced in their city. As a result, many have considered moving out of California altogether.

2. New York

Like California, New York has historically been one of the most expensive places to live, not just in the US but according to global rankings. While New York City remains out of reach for most residents, Upstate New York is no better in terms of being kind to the pocket.

While it is one of the most picturesque locales in the country, you will pay huge taxes and live a life that is basically out of reach for anyone who isn’t super affluent.

3. Massachusetts

New England was never known to be an affordable region to live in. True to popular perception, Massachusetts continues to rank as one of the most expensive states to live in the US.

While Boston can be eye-waveringly expensive due to the sheer number of educational institutions, the smaller towns are pricey too. It doesn’t help that Massachusetts is also one of America’s most educated and developed states, resulting in higher living costs.

4. Hawaii

World Population Review lists Hawaii as the most expensive state to live in 2024, and we quite agree. Hawaii has been consistently expensive due to the heavy influx of tourists, inflation, and a series of natural calamities that have kept housing prices high.

Moreover, job opportunities are limited and mostly revolve around tourism, hospitality, or the government. With these constraints and economic outlook, don’t expect Hawaii to get cheaper in the coming years either.

5. Montana

Montana has traditionally been viewed as a destination for those who love the great outdoors. The Dixie Chicks’ famous song “Wide Open Spaces” also references this state.

However, things have changed quite a bit since the pandemic, and many people have begun to settle in Montana. As a result, Montana has some of the least affordable housing in the US.

6. Colorado

Although Colorado is not particularly known for its expensive lifestyle, a CNBC report noted that homeowners tend to shell out quite a lot on climate-associated damage. In fact, the situation seems to be so bad that most homeowners can’t get insurance due to frequent claims made by victims of climate-associated damages.

As a result, home prices tend to be higher whether you choose to live in Denver or in a suburban location.

7. New Jersey

Blame it on its geographical proximity to New York — New Jersey is one of the most expensive states in the US. As one of America’s most educated and affluent states, it shouldn’t be a surprise that living costs are high, too.

According to a Forbes study, the average rent in New Jersey hovers around $1,828. Thus, Newark is no longer the affordable suburb of NYC that it used to be.

8. Utah

If you thought Utah was just another state in the Mountain West, think again. Home prices and other expenses such as utilities, groceries, and fuel have skyrocketed in recent years.

While some studies blame this on immigration, others note that Utah has affordable healthcare. As they say, you win some, and you lose some. We suggest doing your homework before you decide to shift your base to another state.

9. Oregon

Although Oregon is known for its scenic beauty and quirky cities like Portland, it is not particularly famous for its affordability. Housing prices and basic necessities tend to be super expensive.

Most people have to drive long distances, and gas prices don’t help their pockets either. As a result, you can expect Oregon to remain a pricy state in which to live for many more years to come.

10. Alaska

You may assume that faraway Alaska should be affordable, as few people live there, and it’s always cold and dismal. You couldn’t be further from being wrong.

Alaska is neither affordable nor dismal. It is home to a large expat and mainlander population, who move there to experience its scenic beauty and outdoor culture. Gas exploration and mining, in addition to the remoteness of the location, have driven living costs as well.

11. District of Columbia

Washington DC is the seat of American politics and home to many think tanks and consultancies. Considering its importance in American society, it shouldn’t come as a surprise that it is one of the most expensive places to live in the US.

Not only is real estate expensive, but almost everything is out of reach too. You’ll end up paying more than the national average for most things, such as utilities, food, and transportation.

12. Maryland

Maryland can be far from affordable based on your lifestyle. According to Forbes figures, the state ranks #6 in terms of living costs. However, the World Population Review ranks it at #7.

Regardless, you can expect to pay more in Maryland than anywhere else in the US, save for a few similarly expensive states.

13. Vermont

Vermont is sparsely populated but does not make this scenic state any less expensive. Known for its liberalism and progressivist attitudes, Vermont is also quite pricey to live in.

If you can afford to live here, remember to slurp down some local maple syrup. You can rest assured that you will spend much more than the national average for the rest of the things, including utilities, transportation, and food.