Whether you’re looking to relocate or just want to see how your state stacks up, here are some of the most expensive states to live in across the U.S.
Each state and region in America has unique traditions, climates and landscapes. But they also have varying levels of expense. From energy usage costs to rent prices, several factors cause each state to have different costs of living.
Economic situations are a significant element that shapes people’s lives, and in America, the state where people choose to live can affect their income and how much money they can save. Regional price parities (RPP)* are an effective way to tell how pricey a state is by showing the differences in prices for a year in a percentage compared to the national price level. Using RPPs, income and rent, here are the top eight most expensive states to live in.
Hawaii, the island state and a popular vacation spot, tops the list as a highly sought-after location. With its year-round warm climate and tropical appeal, who wouldn’t want to live here?
However, renting a place in Hawaii costs somewhere around $1,507, according to the median gross rent. Its RPP is 118.4, and this is mostly due to high food, electricity and gas prices. People generally make around $74,511, as the median household income reflects.
2. District of Columbia
Although technically not a state, D.C. is highly populated and functions in a similar way to the rest of the nation’s states. With an RPP of 115.9, the urban area and its surrounding suburbs create a costly setting. It wins the spot of the second most expensive area — although a frequent argument is that New York City is costlier. There’s just no stretch of country land to offset the figures here.
With its lavish restaurants and extreme housing prices, it’s no surprise the median gross rent is $1,424. And D.C. residents make even more than Hawaii residents, as the median household income is $75,506.
3. New York
Due to the bustling metropolis of New York City, the whole state’s RPP is incredibly high at 115.6. The limited space of the city causes the state’s median gross rent to be $1,194, and people are willing to overpay for an apartment in this famed area. You can be hard-pressed to find an affordable neighborhood in the city.
Of course, there’s more to the state than the city, as any proud Upstate New Yorker is bound to tell you. Upstate, you’re going to find land very affordable and the population density dwindling. But Buffalo and Rochester exceed the rental prices of many other places, too. As a center for many powerful companies, New York as an entire state features dynamic careers and a median household income of $62,909.
The Golden State has drawn a massive population, but the increased number of Californians has driven prices and the demand for housing up. It takes extra funds to thrive in Los Angeles and San Francisco, and large cities like these force California’s RPP up to 114.4.
California citizens make a median $67,739 per year, but they still have a housing crisis and compact living quarters. The median rent is at $1,358, and permanent housing is even more luxurious and extravagant.
5. New Jersey
Primarily because it’s a short commute to New York City and Philadelphia, New Jersey’s cost of living is above many other states. As an area with an extreme property tax, New Jersey’s RPP comes in at 113.2. Commuting and housing are both contributors to residents’ financial struggle.
Those searching for a place to rent here should know the median gross price is about $1,249. The median household income is $76,126, showing the state’s high earnings.
As D.C.’s next-door neighbor, Maryland is a historic place with soaring prices. In reality, Bethesda is the area with the steepest expenses, and D.C.’s suburbs that land in Maryland also require a well-padded bank account. The RPP of the state is 109.5, and two significant influences on the price level are health care costs and energy bills.
As a residual effect of D.C., the median gross rent is $1,311. And Maryland households boast a median income of $78,945.
Another New England locale with an upscale reputation, Connecticut is among the priciest states. With an RPP of 108.7, this state can drain your bank account. With plenty of affluent entertainment choices, many residents can afford to enjoy these pleasures, as the median household income is $73,443.
You can probably find a building with a little history to stay in, but it might be a financial undertaking with the median gross rent at $1,123.
This Northeastern state rivals many other places in the nation, as a quick stop at the supermarket can cost you dearly. Boston is one reason Massachusetts made this list, with an RPP of 107.8. And the lovely brownstones it features have bumped the housing prices up. The median gross rent is $1,173, but for a tall and stately townhouse, you’ll likely need even more to keep up with the renting crisis.
Many Massachusetts families can cover these costs, though, because the median income for households is $75,297.
What are the Most Expensive States to Live in?
This list is based on the Bureau of Economic Analysis’ Real Personal Income for States and Metropolitan Areas in 2016, which makes the comparison more manageable. Each state’s median household income comes from the American Community Survey Brief for Household Income in 2016. And the median gross rent by state derives from the U.S. Census Bureau’s American FactFinder for 2017.
Each state’s expenses impact their residents and offer benefits and drawbacks. And of course, what your cost of living is going to be also depends on your city and lifestyle. How does your rent and income stack up against these expensive states?