The 10 Most Expensive U.S. States

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By staff

Let’s take a look at where living costs a lot in the US. We’ll check out ten states where prices are high, from houses to food and taxes. You’ll get to know why these places are pricey and what makes people still want to live there. So, if you’re planning to move or just curious, keep reading to see which states might make your budget tight.


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With its stunning coastlines and vibrant cities, California stands out as a highly sought-after place to live. However, this desirability comes with a high price tag. The cost of housing is a significant factor, with the median home price reaching $684,800, which is well above the national average. Residents also face hefty expenses for utilities, averaging around $375 per month. Furthermore, the state’s environmental regulations, aimed at preserving its natural beauty, contribute to higher living costs through increased taxes and utility rates. These elements combine to make California one of the priciest states in the U.S. for residents.


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Known for its paradise-like setting, is also recognized for its steep living costs. The state’s unique position in the middle of the Pacific Ocean means that most goods need to be imported, significantly driving up prices. Housing is particularly expensive, with the median sales price of a single-family home on Oahu reaching $1,100,055 as of November 2023. Renting isn’t much cheaper; a studio on Oahu can cost between $1,000 to over $1,600 per month.

The high cost of living is further exacerbated by Hawaii’s desirability among foreign investors, which inflates property values. Additionally, residents face the second-highest income tax rates in the country, with the top bracket at 11 percent. Despite these financial challenges, many find the state’s allure, with its beautiful landscapes and laid-back lifestyle, to be worth the extra expense.

New York

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New York’s reputation as a bustling hub of culture, finance, and entertainment is well-earned, but it comes with a high cost of living. The state, particularly New York City, is one of the most expensive urban areas in the world, with living costs over 121% higher than the national average. Housing costs are a major contributor, with Manhattan housing prices being 404% above the national average. The average rent in New York City is $4,454 per month and the average home price hovers around $790,000.

The state’s economy is robust, generating a gross metropolitan product of over $2 trillion per year, attracting businesses and entrepreneurs globally. This economic success, however, translates into higher prices for residents. New York also faces a housing shortage due to its massive population and limited space, further inflating housing costs. High-salary job opportunities and the presence of over 53 Fortune 500 companies headquartered in the city contribute to the high demand and cost of living.


Often celebrated for its rich history and top-tier education, also ranks as one of the more expensive states to live in. The cost of living here is driven up by several factors. Housing costs are a primary concern, with the average home price in Boston sitting at $800,000. This is due to a competitive housing market with high demand and limited supply, leading to rising home prices.

Education also plays a role in the state’s high living expenses. Massachusetts boasts some of the best schools in the country, but this prestige comes with higher costs for both public and private education. Additionally, healthcare costs are among the highest in the nation, influenced by a large number of hospitals and health centers, as well as a high concentration of physicians and specialists throughout the state.

Transportation costs, including tolls, gas prices, and parking fees, along with the high cost of imported goods, contribute to the overall expense of living in Massachusetts. Despite these costs, many are drawn to the state for its educational opportunities, healthcare facilities, and historical significance.


Washington’s high cost of living is influenced by several factors. The state’s natural beauty and outdoor recreation opportunities make it a desirable place to live, but this desirability comes with higher housing prices, especially in populous cities like Seattle. The median home value in Washington is around $600,000, a figure that has risen significantly in recent years.

A key reason for the expensive housing market is the limited availability of homes, which, when paired with high demand, leads to increased prices. Additionally, while Washington residents benefit from no state income tax, they do face other financial burdens such as relatively high sales taxes and property taxes.

The state’s economy is diverse and robust, with a strong presence of major companies, particularly in the tech industry, which contributes to higher average incomes and, consequently, a higher cost of living. Despite these costs, many people are attracted to Washington for its job opportunities, quality of life, and the absence of state income tax, which can be a significant saving compared to other states.


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Connecticut, with its New England charm and rich history, is another state where the cost of living is quite high. The state’s housing market is a significant factor, with the median home value standing at $272,700. Homeownership comes with high property taxes, making it less attractive compared to states with lower tax rates.

The state’s high taxes are a notable contributor to its overall cost of living. Connecticut is known for having relatively high taxes, which fund a high level of services desired by its residents. Energy and utility costs are also above the national average, adding to the daily living expenses.

Transportation costs, including high gasoline taxes, make commuting by car an expensive endeavor. The state’s desire for quality public services, such as top-notch public schools and well-maintained parks, further drives up living costs through taxes.

Despite these expenses, many are drawn to Connecticut for its outdoor recreation opportunities, excellent education system, and the quality of life it offers.

New Jersey

New Jersey, often referred to as the Garden State, is known for its high quality of life, which includes low crime rates, a booming job market, and a diverse population. However, these benefits come at a cost. The state’s proximity to major cities like New York and Philadelphia, combined with its high population density, leads to a high demand for housing with a low supply, pushing home prices up.

The median home value in New Jersey is $466,281, with cities like Jersey City and Princeton seeing even higher median home values of $576,704 and $1,189,440, respectively. Renting is also costly, with median rents well above the national average. For example, a one-bedroom apartment in Jersey City costs around $2,113 per month, significantly higher than the national median.

Moreover, New Jersey residents face high taxes, with state income tax rates ranging from 1.4% to 10.75%, depending on income bracket. While utility costs are somewhat lower than the national average, the overall expenses associated with living in New Jersey make it one of the most expensive states in the U.S.


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Maryland often admired for its scenic landscapes and proximity to the nation’s capital, is also known for its high cost of living. The state’s housing market is quite expensive, with costs significantly above the national average. This is partly due to Maryland’s strong job economy, which boasts a median household income of $90,000—the highest in the nation. The presence of high-paying jobs, especially in sectors like healthcare, government, and technology, contributes to the overall cost of living.

The cost of utilities and groceries in Maryland is also higher than average, adding to the daily expenses of its residents. Moreover, the state’s rich culture and history, along with its outdoor activities, make it an attractive place to live, which can drive up prices.

Despite these costs, Maryland’s top-notch public education system and the opportunity for great-paying jobs in a diverse economy make it a desirable state for many.


Renowned for its vast wilderness and unique beauty, this state’s residents face higher living costs due to its remote location. Goods often require air travel for delivery, leading to increased prices. The median home value is $385,000, and utilities are 33% higher than the national average, with an average utility bill in Anchorage at $270.28. Food expenses are also significant, with a recommended minimum of $451.71 per month for one person in Anchorage. Despite these costs, the absence of state income or sales taxes offers some financial relief.


Characterized by its lush landscapes and progressive culture, this Pacific Northwest state sees a cost of living 16% higher than the national average. Housing is a major expense, with the median home price reaching $485,475 by March 2023. The state’s picturesque views and temperate climate contribute to the high demand for real estate, further inflating prices.

Residents also contend with significant transportation costs, as many live in urban centers spread across large distances, necessitating long commutes and higher fuel expenses. Despite the absence of a statewide sales tax, Oregonians face a progressive income tax system with rates up to 9.9%, impacting their overall financial burden.

The state’s commitment to environmental sustainability and social programs may require higher taxes and fees, which can also contribute to the higher costs of living. However, many find the quality of life, from the vibrant city life in Portland to the tranquil beauty of the Oregon coast, worth the extra cost.

To wrap up, we’ve looked at ten states where living isn’t cheap. Each place has its own reasons for high costs, like expensive homes or big taxes. But they also have things that make them great, like beautiful views or good jobs. Remember, a high cost of living doesn’t mean a place isn’t worth it. It’s all about what you value and what you’re willing to pay for the lifestyle you want. Whether you’re thinking of moving or just curious, now you know a bit more about what makes these states stand out in terms of cost.

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