The 8 Most Expensive States to Live In

by Demarco Gonzalez | March 23, 2018 10:33 am

The cost of living in the United States varies from one state to another and within states. What could be a decent salary in one state is almost not enough to make a living in another. But, which are the states where you must earn more to make it to the end of the month? Comparing costs of living in the USA[1], here are the eight most expensive states to live in this year.

Colorado

Colorado

It seems hard to believe Colorado made it to this list this year. Yet, costs of living in Colorado are 12%[2] above the national average. People who live in this state pay more for healthcare and transportation, but they deal with lower prices for utilities.

Housing costs about $13,500 a year, while childcare eats up around $10,000 for the entire year. Forbes called Colorado the third best state to make a living in 2017. To live decently in Colorado, you need to make more than $60,767, which is the average living wage[3].

Alaska

Alaska

The largest state in the US is also one of the most expensive to live in; costs of living are – on average – around 30% higher than the national average. Prices within state vary with the region for food and housing.

Depending on the supply and demand, you can find apartments and houses for rent for as little as $500. But, in some regions in Alaska, you won’t find anything under $1,000 a month.

Generally, Alaskans pay more for utilities (especially during winter) and healthcare. Groceries have on par prices with the national average – a family spends around $122 per week for food[4], with higher costs in the rural areas.

New Jersey

New Jersey

New Jersey is one of the states with the highest taxes in the US. And it’s the eighth most expensive for buying food[5] for your family. Plus, getting a house here can cost a small fortune, depending on the geographical area you choose.

The average listing prices in New Jersey, by county, go from $160,000 in Camden to $1,4 million in Middlesex County. Rent in New Jersey is above the national average, too – one-bedroom apartment rents for about $ 1,300 a month.

The good news about living in New Jersey is that people here pay less for transportation and healthcare (a doctor visit costs about $97) – on par with the national average.

Connecticut

Connecticut

In Connecticut, the average home price is $650,000. Renting can cost you between $850 and $2,000, depending on the geographical area and the type of accommodation you’re looking for.

Transportation is 13% more expensive than the national average. While groceries can eat up as much as 30% more from your income. Having an emergency fund is essential when living in Connecticut. The state has expensive healthcare – $125 for a doctor visit – and high energy bills – on average, $237 a month.

New York

New York

New York has high income taxes and, in New York City, renting a home costs more than buying it[6]. The cost of living in the urban area is up to 70% higher than the national average.

If you live in the state of New York, you can pay almost twice for food and around 30% more for transportation than most of the Americans. A family spends an average of $260 a week for food when cooking at home. Prices in restaurants are at least 50% higher than in other states.

Hawaii

Hawaii

Some statistics put Hawaii at the top of the list when it comes to the most expensive states to live in. Furthermore, the state was seen as the worst state to make a living, by many banks and financial institutions.

In Honolulu, rent costs almost $3,000 a month in an expensive area (for a 900 sqft furnished accommodation) and about $1,300 in a normal area (for a 480 sq ft furnished studio).

Everything in Hawaii is expensive[7] – utilities, food, housing. This state has the highest price in the US[8] for gas. The living wage in Hawaii is $60,784, but you’ll need to earn almost the double of this amount to keep a high standard of living.

California

California

California is the other top if the list when talking about expensive states to live in. The average price for a home in San Francisco is over $1 million – the third highest in the country. For the state of California, the average listing price is $425,000. Rent is also expensive, with an average of $1,900.

To make a good living in California, you need to make around $95,000 a year. Most people don’t. From getting car title loans in Fresno[9] to working extra hours or two jobs, living well in California means learning to stay within your budget.

From transportation to healthcare and groceries, everything is more expensive than the national average (maybe except utilities). Plus, California is considered the state with the worst quality of life[10] and the worst traffic in the country.

District of Columbia

District of Columbia

The medium home value in Washington is close to $548,000, with prices growing bigger as the city attracts wealthier people. Renting is expensive, too, with prices going from $1,500 to $2,500 depending on the area you’re interested in.

The District of Columbia isn’t as expensive as Hawaii and California when it comes to food. Eating at home costs you around $400 a month, which means prices are high, compared to other states. However, utilities cost less – around 20% less than the national average.

Public transportation and gas price are on par with the national average.

How to Choose Your Next Home

From housing expenses to groceries and gas, prices vary depending on the region you live in and whether you live in the urban, rural, or suburban area. Compare these cities to where you live now. Will you be able to afford it? Will you make more money if you go? If you plan on moving to one of these states – think long and hard before you make the commitment.

Endnotes:
  1. costs of living in the USA: https://www.gobankingrates.com/saving-money/california-new-york-cost-living-across-america/#13
  2. living in Colorado are 12%: https://choosecolorado.com/living/cost-of-living/
  3. living wage: http://www.bbc.com/news/business-20204594
  4. $122 per week for food: https://www.alaska.net/costofliving.html
  5. eighth most expensive for buying food: https://www.cheatsheet.com/business/8-states-with-the-highest-food-costs.html/?a=viewall
  6. costs more than buying it: https://streeteasy.com/blog/tipping-point-buy-versus-rent/
  7. Hawaii is expensive: https://www.aimforawesome.com/hawaii/moving-to-hawaii/hawaiis-high-cost-of-living/
  8. the highest price in the US: http://www.newsweek.com/most-expensive-place-live-us-hawaiitoilet-paper-costs-more-628977
  9. car title loans in Fresno: https://www.tfctitleloans.com/locations/california/fresno-car-title-loans/
  10. with the worst quality of life: http://www.businessinsider.com/california-worst-quality-of-life-2018-3?IR=T

Source URL: http://betacash.org/the-8-most-expensive-states-to-live-in/