California, Massachusetts, or Hawaii? Discover the State with the Highest Living Expenses
New York, Washington, Colorado, California, and Hawaii rank among the most costly states, whereas states like Mississippi, West Virginia, Arkansas, and Oklahoma are more budget-friendly.
According to recent data from doxo, a service for online bill payments, Hawaii tops the list as the most expensive state to reside in.
Doxo has published its 2024 Cost of Bills Index, which compares average household expenses across different states and major U.S. cities.
This index tracks ten common household bills, which include utilities, phone and cable services, auto loans, auto and health insurance, as well as rent and mortgage payments.
The report indicates that an average American household spends $2,126 monthly on these ten common bills, totaling $25,513 annually.
Here’s a look at how these usual household expenses differ from state to state:
Top State for Monthly Expenses
With an average monthly expenditure of $3,091 on utilities, mortgage/rent, and other household expenses, Hawaii is ranked as the most expensive state. This is 45% higher than the national average. The median household income in Hawaii is reported at $94,814 by the U.S. Census Bureau.
In Hawaii, the average monthly mortgage payment is $2,576, whereas average rent is $1,983, according to the report.
Here are the ten most expensive states for monthly living costs:
- Hawaii
- California
- Massachusetts
- New Jersey
- Maryland
- Washington
- New York
- Connecticut
- Colorado
- New Hampshire
Top State for Low Monthly Expenses
West Virginia is identified as the least costly state for monthly living expenses. The median household income here is $55,217, according to the U.S. Census Bureau.
In West Virginia, residents spend an average of $1,596 a month on their bills, which is 25% less than the national average. Mortgages average around $961, while rent costs approximately $846 per month, as per the report.
Here are the ten states with the lowest monthly living costs:
- West Virginia
- Mississippi
- Arkansas
- Kentucky
- Oklahoma
- Indiana
- Alabama
- Missouri
- South Dakota
- Kansas
Understanding Cost of Living
The cost of living refers to the financial resources needed to meet basic expenses. Various scores across states and regions provide a perspective on living expenses relative to income levels. Simply comparing wages and consumer prices is insufficient because individuals in areas with higher living costs often earn more than those residing in less expensive locales.
The cost-of-living index scores compare a specific area against the national average. There isn’t a universal federal index, and different methodologies are used to calculate cost of living, according to Investopedia. These scores typically derive from the costs of housing, utilities, food, transportation, healthcare, and other miscellaneous goods and services.
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