What's the Most Expensive State to Live In?

With a staggering $55,491 as its cost of living, Hawaii tops the list as the most expensive state in the nation.

This Pacific Ocean paradise, known for its breathtaking landscapes and tropical climate, also comes with a hefty price tag. The high demand for housing, coupled with limited supply, drives up housing prices, making it one of the most costly places to call home. The average monthly mortgage payment there is a whopping $5,770.

According to the governor's office, as of 2023, housing costs across the state of Hawaii were 2.7 times the national average, and median prices for single-family homes and condos — $850,000 and $600,000, respectively — had tripled since the 1990s.

Despite the state's scenic beauty, residents often struggle with the extra expenses associated with everyday life. Transportation costs average $7,500 annually, and the average rent there ($2,423 per month) is higher than the national average ($2,115 per month), contributing to the state’s high cost of living.

Although the median household income in the state is $92,458, the high expenses mean Hawaiian residents have the least amount of disposable income (only about $9,500 each year) compared to the rest of the country.

Massachusetts is the second-most expensive state to live in. Known for its rich history, prestigious educational institutions and vibrant cities, the state offers a high quality of life but at a steep price.

The median home values, especially in cities like Boston, are far above the national average, contributing to the high cost of living. Between 2023 and 2024, the median price for a single-family home in the state increased from about $560,000 to about $610,000.

However, the state also boasts high salaries (about $80,300 on average) and a relatively high median household income ($94,488 annually).

When all is said and done, Massachusetts residents have a little more than $26,000 left over, ranking the state fifth in terms of disposable income. Still, the housing costs, healthcare costs, and utility costs are significant, making Massachusetts a costly place to live.

California is synonymous with high costs. From the bustling tech hub of Silicon Valley to the expensive city of San Francisco, California's housing market is among the most competitive in the country.

The high cost of housing, driven by high demand, pushes many residents to the brink. Two-thirds of California residents pay more than $2,000 per month in rent, with nearly 15 percent of all residents paying $3,000 or more.

The state offers a high median household income ($91,551 annually), and the difference between income and expenses often leaves residents with around $24,000 in disposable income. However, California also has some of the highest costs for utilities, health care and transportation, firmly solidifying its place on this list.

While it may not be the most expensive state, the cost of living in New York, especially in New York City, is still exorbitant. Housing prices there are among the highest in the country: 30 percent of homes are valued between $500,000 and $999,999, and 11 percent of homes are valued at over $1 million.

On top of this, property taxes in New York are significant, with the median annual property taxes for single-family homes above $5,000.

New York residents enjoy a relatively high median household income ($79,557 annually), and they're ranked second in terms of disposable income — about $29,00 per year. However, the high costs of miscellaneous goods and services, utilities and healthcare still make life in the Empire State a financial challenge for many.

Despite being a small state, New Jersey has big housing costs and property taxes, which are some of the highest in the country. A whopping 25 percent of residents pay $2,000 or more in rent each month — at least $700 more than the national average.

And in 2023, no other state had a higher median property tax bill with regard to single-family homes; the average property taxes ranged from about $4,600 to $11,350, depending on the county.

However, New Jersey's proximity to New York City and Philadelphia offers high earning opportunities. The median household income is just over $96,000, and residents enjoy a disposable income of about $24,474 each year (the 10th highest out of all the states).

Still, the high cost of living there would likely cause anyone to pause when considering whether or not to make New Jersey their new home.

Alaska might be known for its breathtaking natural beauty and vast wilderness, but the state's remote location contributes to high transportation costs, and the cold climate leads to significant expenses for utilities such as heating and natural gas.

Alaska has the highest utility bills in the country, totaling about $570 per month. That's $140 more than the national average.

The median household income in Alaska is $88,121, while the average disposable income is $21,219. Despite there being no state income tax, the high costs of goods, services, and healthcare are a heavy responsibility for many who live there.

For example, the average cost of health insurance premiums for employer-sponsored coverage in Alaska was nearly $23,000 in 2019, much higher than the national average of about $20,500.

Maryland's proximity to Washington, D.C., and its strong job market (the median household income there is about $95,000) make it an attractive place to live. But the high cost of housing and property taxes can be daunting.

If you want to buy a home there, you'd better have deep pockets, since one-third of the houses are valued at half a million dollars or more. On top of this challenge, the state is experiencing a housing crisis, being short nearly 100,000 homes.

Healthcare costs and utility costs in Maryland are also above the national average, further contributing to the state's high living index. Despite these costs, Maryland's residents enjoy a relatively modest disposable income of $25,397 annually.

The booming tech industry in Washington state — particularly in cities like Seattle — has driven up housing prices and the cost of living. The state has seen a significant increase in housing prices, with the median home price reaching approximately $615,000, which is well above the national average ($412,000 as of Q2 2024).

The state's overall utility costs, including electricity and natural gas, are actually about 7 percent lower per month than the national average. However, the state has the fourth-highest average combined state and local sales tax rates, at 9.38 percent, adding significantly to the cost of goods and services.

While it may be the eighth-most expensive state to live in, Washington residents enjoy a median household income of about $91,000, and they have about $31,000 in disposable income each year — more than any other state.

Known for its picturesque small towns and proximity to New York City, Connecticut offers a high quality of life but at a high cost. The state's property taxes are the 12th-highest in the nation at 6.35 percent, and the monthly average for utility bills comes to $533 — 24 percent higher than the national average.

This is due in part to the fact that the state faces some of the highest energy costs in the country, with residential electricity rates 77 percent above the national average, driven by both demand and infrastructure needs.

With a median household income of $88,429 and a disposable income of $26,825, Connecticut residents manage to maintain a relatively high standard of living despite the steep costs they're up against.

Oregon's housing market has seen significant price increases in recent years, with the median home price approaching $525,000, largely due to high demand and limited housing supply.

The state’s median household income is approximately $76,000, with residents managing a disposable income of $20,512, perhaps due in part because Oregon (like Alaska) doesn't have statewide sales tax.

That said, it has the fifth highest income tax rate in the nation, at 9.9 percent for single filers earning more than $125,000 or joint filers over $250,000, which impacts residents' take-home pay significantly.

Despite these high costs, Oregon is known for its strong environmental policies and high quality of life, so it continues to attract residents who value sustainability and enjoy outdoor activities.

We created this article in conjunction with AI technology, then made sure it was fact-checked and edited by a HowStuffWorks editor.