Average Cost of Living by State in the US in 2024
Imagine packing your bags and embarking on a journey across the American landscape. Have you considered the price tag attached to your dream destination?
In our article, we’ll break down what makes living in different states in the US more or less expensive. You’ll be able to tell if your goals are suitable for your budget.
Get ready for the tips!
Cost of Living: What does it entail?
🏠 Housing: Rent or mortgage payments, property taxes, and homeowner’s or renter’s insurance
🚗 Transportation: Car payments, gasoline, insurance, maintenance, or public transit costs
🍎 Food: Expenses for groceries, dining out, and meal delivery services
⚕️ Healthcare: Health insurance premiums, out-of-pocket medical costs, prescription medications
💡 Utilities: Electricity, gas, water, internet, and cell phone services
👕 Clothing: Purchases of new clothing and footwear
🧒 Childcare/Education: Daycare, school tuition, supplies, or extracurricular activities
🏋️♀️ Recreation: Costs for hobbies, sports, entertainment, and vacations
🚧 Miscellaneous: Personal care products, household items, insurance, and savings for emergencies
Living Expenses in the US
In the US, a typical family annually spends $61,334 on various necessities. Of this, approximately 34.9% goes towards housing and associated costs. Moreover, transportation accounts for an additional 16%. Healthcare costs add an extra $5,177 per year to the budget. Food expenses come to about $609.75 monthly. Additionally, utilities on average cost households $370.16 per month.
The median annual household earnings across the nation stand at $67,521, whereas individual personal income averages at $35,805. The estimated living wage for a four-member family in the US is around $68,808 per year.
Cost of Living by State in the US
The table below shows the cost of living index by state in the US according to data derived from Numbeo.
State | Cost Of Living Index | Housing Costs Index | Utility Costs Index | Health Costs Index | Transportation Costs Index | Grocery Costs Index | Misc Costs Index |
Hawaii | 179.00 | 309.70 | 141.10 | 118.40 | 140.30 | 125.60 | 123.80 |
District of Columbia | 148.70 | 241.80 | 110.20 | 104.70 | 107.90 | 106.90 | 117.70 |
Massachusetts | 148.40 | 219.50 | 126.10 | 112.60 | 127.50 | 105.00 | 125.80 |
California | 134.50 | 186.50 | 124.80 | 106.40 | 124.10 | 112.30 | 110.90 |
New York | 125.10 | 173.30 | 102.50 | 104.50 | 106.70 | 103.00 | 109.00 |
Alaska | 124.40 | 118.10 | 148.10 | 149.80 | 121.90 | 127.40 | 118.80 |
Maryland | 119.50 | 152.20 | 109.20 | 96.20 | 100.20 | 108.50 | 108.50 |
Oregon | 115.10 | 139.90 | 94.00 | 101.40 | 113.60 | 107.60 | 105.80 |
Washington | 115.10 | 129.40 | 92.20 | 119.80 | 117.10 | 109.70 | 110.80 |
New Hampshire | 115.00 | 109.80 | 130.20 | 120.60 | 113.60 | 102.30 | 120.80 |
Vermont | 114.90 | 131.40 | 120.80 | 106.20 | 115.60 | 103.10 | 106.10 |
New Jersey | 114.10 | 136.80 | 107.20 | 96.10 | 106.10 | 103.90 | 106.60 |
Connecticut | 113.10 | 122.70 | 122.30 | 109.70 | 102.60 | 99.80 | 111.90 |
Maine | 111.50 | 118.90 | 108.00 | 96.20 | 112.80 | 101.20 | 112.80 |
Rhode Island | 110.50 | 114.60 | 109.70 | 107.40 | 98.90 | 100.50 | 115.20 |
Arizona | 107.20 | 125.30 | 94.30 | 93.50 | 99.20 | 101.80 | 102.10 |
Idaho | 106.10 | 113.80 | 84.60 | 101.20 | 109.70 | 103.70 | 106.30 |
Colorado | 105.50 | 116.10 | 90.90 | 102.00 | 107.40 | 100.60 | 103.00 |
Montana | 103.70 | 111.40 | 91.60 | 95.70 | 99.40 | 103.00 | 103.30 |
Virginia | 103.10 | 107.70 | 103.60 | 102.60 | 96.50 | 100.60 | 102.20 |
Delaware | 102.60 | 99.70 | 97.80 | 104.30 | 109.50 | 103.00 | 103.90 |
Florida | 102.30 | 110.50 | 96.70 | 96.30 | 99.80 | 100.10 | 99.40 |
Utah | 101.50 | 106.50 | 93.50 | 90.30 | 100.90 | 98.30 | 102.90 |
Nevada | 101.30 | 110.70 | 96.60 | 94.90 | 117.20 | 102.10 | 91.30 |
Pennsylvania | 99.00 | 89.90 | 105.90 | 96.70 | 108.20 | 100.90 | 102.00 |
South Carolina | 96.50 | 89.40 | 105.30 | 96.70 | 91.60 | 100.10 | 99.50 |
North Carolina | 96.10 | 92.10 | 94.50 | 109.50 | 93.50 | 99.00 | 97.30 |
Wisconsin | 95.00 | 84.40 | 102.80 | 113.70 | 98.60 | 97.90 | 96.70 |
North Dakota | 94.60 | 84.30 | 101.80 | 111.60 | 101.40 | 94.60 | 96.90 |
New Mexico | 94.20 | 87.50 | 93.20 | 99.60 | 93.50 | 96.70 | 98.30 |
Minnesota | 94.10 | 82.30 | 91.50 | 111.50 | 99.00 | 97.20 | 99.60 |
Ohio | 94.00 | 80.10 | 97.20 | 96.50 | 97.70 | 100.90 | 100.10 |
Kentucky | 93.80 | 72.50 | 102.90 | 81.80 | 97.70 | 101.20 | 106.30 |
South Dakota | 93.80 | 93.90 | 87.90 | 97.00 | 93.00 | 98.00 | 93.20 |
Texas | 93.00 | 84.20 | 105.70 | 94.10 | 92.60 | 94.80 | 95.90 |
Wyoming | 92.80 | 80.70 | 85.70 | 98.60 | 95.60 | 102.00 | 99.00 |
Michigan | 92.70 | 80.90 | 99.60 | 94.00 | 98.60 | 97.40 | 96.80 |
Louisiana | 92.00 | 84.70 | 85.30 | 97.90 | 97.20 | 95.10 | 96.30 |
Indiana | 91.50 | 77.00 | 105.40 | 98.90 | 95.70 | 98.00 | 94.70 |
Georgia | 91.00 | 78.50 | 84.40 | 101.40 | 94.50 | 98.90 | 97.20 |
Illinois | 90.80 | 78.30 | 90.90 | 95.40 | 102.40 | 97.50 | 94.30 |
Tennessee | 90.40 | 82.90 | 93.20 | 88.10 | 90.00 | 97.80 | 92.80 |
Arkansas | 90.30 | 76.30 | 91.80 | 87.20 | 92.20 | 95.40 | 99.10 |
West Virginia | 90.30 | 70.90 | 94.50 | 97.00 | 97.80 | 97.70 | 99.00 |
Nebraska | 90.10 | 78.40 | 85.70 | 97.10 | 101.80 | 95.20 | 94.80 |
Iowa | 89.70 | 72.40 | 94.50 | 99.70 | 100.60 | 96.80 | 95.40 |
Alabama | 88.80 | 70.40 | 103.60 | 86.90 | 92.00 | 96.40 | 96.20 |
Missouri | 88.40 | 77.20 | 97.70 | 89.90 | 90.30 | 94.80 | 91.60 |
Kansas | 87.70 | 69.40 | 107.50 | 97.10 | 88.30 | 96.80 | 91.90 |
Oklahoma | 86.00 | 68.00 | 98.20 | 91.80 | 92.30 | 93.80 | 91.50 |
Mississippi | 85.30 | 68.60 | 86.10 | 97.60 | 88.60 | 97.10 | 91.00 |
With a cost of living index at 83.3, Mississippi stands as the most economical U.S. state to live in. The affordability is especially evident in the housing sector, with the country’s lowest median price for a standalone home at $140,818. Mississippi also takes the lead in having the nation’s lowest transportation expenditure.
Kansas follows close behind with a cost of living index of 86.5, the second-lowest nationwide. A distinct feature is its reasonable housing sector, where the mean cost for a single-family residence is $176,898. However, Kansas’s utilities and healthcare costs are marginally above the national average.
💸 "A typical family annually spends $61,334 in the US" 💸
Alabama ranks as the third most affordable state. It notably offers the second-most affordable housing, with an average single-family house price of $170,184. Alabama enjoys some of the lowest health and transportation costs in the country.
In stark contrast, Hawaii’s living costs are almost double the national average. It boasts the nation’s highest housing costs with an average single-family home costing $730,511. Goods push grocery costs to 50% above the national average.
🏡 "The median price of a single-family house in the US is $273,992" 🏡
New York has the second-highest cost of living index in the U.S. Housing costs, second only to Hawaii, and a single-family home typically priced at $373,880. However, costs significantly escalate in New York City. The same accommodation would cost around $5,874.
California is the third priciest U.S. state. High transportation costs and housing costs twice the national average in California. A typical standalone house costs $683,996 with higher figures in major cities like Los Angeles and San Francisco.
Pinching Pennies
Are you living in one of those States with a High Cost of Living? Here are some ways to tighten the belt and save:
🏡 Choose Smarter Housing: Opt for a smaller apartment or a shared housing. Living in more affordable neighborhoods can also help reduce rent or mortgage payments.
🍽️ Cook at Home: Minimize dining out and prepare meals at home to save on food expenses.
🚌 Public Transportation: Use public transit, carpool, bike, or walk instead of owning a car to save on transportation costs.
🛍️ Thrifty Shopping: Buy items in bulk, look for sales, and consider shopping at thrift stores or using second-hand platforms.
🌳 Free Entertainment: Take advantage of free or low-cost community events, parks, and public amenities for leisure activities.
💧 Conserve Utilities: Be conscious about energy consumption. Turn off lights when not in use, unplug devices, and use energy-efficient appliances.
📱 Bundle Services: Look for bundle deals for internet, cable, and phone services. It’s often cheaper than paying for each separately.
🏥 Use Preventive Health Care: Regular check-ups and a healthy lifestyle can prevent high medical costs in the future.
📚 Self-Education: Learn to do things yourself to save on services like cleaning, minor repairs, and personal grooming.
My Experience
For over a decade in the 2000s, I lived in New York, one of the most expensive states. And boy, do I know what ‘expensive’ means? Yes, it was fun, and it was vibrant, but all these came with one giant price tag attached.
The everyday cost of living is unmistakably high and is felt most in areas like housing, transportation, and dining out. Renting an apartment in a nice and safe neighborhood on the Upper West Side took up a substantial part of my monthly income. Even simple pleasures like grabbing a coffee or taking a taxi ride quickly added up.
When I first moved to the city, this financial reality hit me hard. At times, the rising costs made me feel trapped and overwhelmed like the city was asking for more than I could afford.
Over time, though, I found ways to navigate the costs. I looked for secret gems, like affordable restaurants in the area, and used public transportation to save money on commuting costs. I made room for my life in New York by figuring out how to prioritize my expenses more wisely.
Cost of Living by State: Conclusion
The cost of living is an important factor to consider while planning our finances or determining where to live. It portrays a region’s economic realities by highlighting expenditures such as housing, transportation, food, and healthcare.
It’s a good option for Americans to balance these costs against their incomes and lifestyle preferences. Choosing affordable accommodation, cooking at home, utilizing public transportation, and being a wise shopper are some tactics to achieve such a balance.
If you enjoyed this article, you may also be interested in reading up on the cheapest states to live in, as well as the most expensive states to live in.
You may as well compare the cost of living in Portugal vs USA.
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Frequently Asked Questions
What does the term 'cost of living' mean?
The term cost of living refers to the total amount of money required to sustain a certain standard of living, including basic living expenses like food, housing, transportation, and healthcare.
What is the relevance of economic research in understanding the cost of living?
Economic research plays a crucial role in ascertaining, tracking, and comparing living costs across various regions. These assessments help formulate policies and interventions that respond to living cost disparities.
What is a living comparison calculator and how does it work?
A living comparison calculator, or a living calculator, is a tool used to compare living expenses between different cities or states. A living calculator computes the difference in costs of housing, transportation, grocery items, health care, and other consumer goods, providing an index value for a straightforward comparison.
What factors contribute to the variation in living costs across the country?
Several factors contribute to the differences in living costs, including regional differences in wages, real estate prices, taxes, healthcare costs, and the prices of goods and services. Even within a country or a city, living costs can vary significantly, especially between urban and rural or metropolitan areas.
Which is the most expensive state to live in the US?
As of the latest data, Hawaii holds the record for the highest cost of living index, making it the most expensive state to reside in the US.
What does the Bureau of Labor Statistics tell us about the cost of living?
The Bureau of Labor Statistics provides valuable data that reflects the costs of living across the nation. This includes changes in prices for consumer goods, housing, healthcare, and more, which can inform people's decisions about where to live.
Where can one find the lowest cost of living in the US?
Currently, Mississippi has the lowest average cost of living in the country, making it an attractive destination for those who have lower income and are seeking lower costs.
How does the cost of living impact the unemployment rate in a city?
High living costs in a city can impact the unemployment rate in several ways. High costs may deter job seekers from moving to the city for employment, potentially leading to labor shortages and increased unemployment rates. Conversely, cities with high average cost of living often offer high salaries, which can attract a large workforce and reduce the unemployment rate. Therefore, the relationship between living costs and unemployment rates can be complex and vary from city to city.
What is the impact of high living costs on people with low incomes?
High living costs can pose significant challenges for individuals or families with low compensation. If prices for housing, food, and other necessities are high, they may find it difficult to meet their needs. However, some high-cost cities also provide more opportunities for high-paying jobs, which can help offset the cost of living.
How can one economize in states with high costs of living?
Living in a high-cost state doesn't have to drain your finances. Strategies such as downsizing your housing, using public transportation, shopping smarter for groceries, and utilizing community and economic resources can help manage money better.
How do living indexes help in understanding the cost of living?
Living indexes are useful tools for grasping the nuances of living costs. They give a comparative example of how expensive or cheap a city or state is in relation to a baseline, helping individuals make informed decisions about relocation or lifestyle adjustments.