Cost of living comparison by state

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How much you spend on major expenses such as housing, groceries and insurance all impact your cost of living – and prices for goods and services can vary widely by location.

That means a state’s cost of living can make the difference between being financially comfortable and living paycheck to paycheck.

To compare the cost of living in different states, we ranked each of the 50 states and Washington, D.C., using data from the Center for Regional Competitiveness. This management organization oversees the Council for Community and Economic Research. 

The data track regional differences in the cost of consumer goods and services, allowing us to evaluate factors such as:

• Housing
• Groceries
• Transportation
• Utilities
• Home and auto insurance
• The cost of home and auto insurance
• Health care

Our base cost of living is represented by a reading of 100, which represents the national average. Locations are then indexed against this number. 

For example, a state with a cost of living of 110 would be 10% higher than the national average.

The average household spends $61,334 a year on expenses, according to the most recent numbers from World Population Review. More than one-third of that amount — 34.9% — goes toward housing and related costs.

Where you live plays a big role in how far that money goes. Hawaii scores 185.9, meaning it’s about 86% more expensive than the average, while Oklahoma sits at 86.3, making it roughly 14% cheaper.

If you are considering moving or simply want to know how your state stacks up, read on for more information about the cost of living by state.

What is cost of living? 

Cost of living refers to the amount of money you need to cover basic living expenses in a certain location. That can include the average cost of:

• Rent/mortgage payments
• Utilities
• Food and groceries
• Health care
• Home and auto insurance
• Transportation 
• Other goods and services

Your cost of living can tell you how expensive it is to live in one area versus another.

Average cost of living by state

Hawaii has a cost-of-living index of 185.9, making it 86% more expensive than the national average.

The table below shows the cost of living index for all 50 states in the U.S., plus Washington, D.C.

​​

Oklahoma ranks lowest, with an index value of 86.3. That is a 14% savings over the national average.

States such as California and Massachusetts have much higher costs of living than places like Mississippi and Alabama because housing, taxes, and everyday expenses are significantly higher. In high-cost states, demand for housing in major job markets drives up real estate and rent prices, while higher state taxes and wages push up the price of goods and services. 

In contrast, lower-cost states typically have more affordable housing, lower taxes, and cheaper labor, keeping overall living expenses well below the national average.

The cost of living varies within each state, too. Rural areas usually have a lower cost of living than suburban and urban areas. Even one metro area within a state can have a very different cost of living from another metro in the same state.

For example, Houston, Dallas, El Paso, San Antonio, Austin, Amarillo, and Beaumont are all proudly Texan. However, the cost of living in each varies.

The more congested Northeast isn’t immune to the substantial cost of living variations.

New York has the New York City area, Long Island and Westchester County, all with high costs. However, the Empire State also includes more affordable areas such as Albany, Rochester, Utica and Buffalo.

So, don’t write off an entire state if it has a high cost of living overall. Instead, dig deeper into the numbers to gauge specific regional costs.

How to compare the cost of living between cities

Whether you’re moving to start a job or relocating in retirement, our cost of living calculator can help you evaluate how much it will cost you to live in your specified city.

Our calculator compares costs related to major budget categories such as:

• Housing
• Groceries
• Utilities
• Health care
• Other goods and services
• Home and auto insurance

You can also compare any two factors side-by-side.

Our cost of living calculator provides information about the salary you’ll need to maintain your current standard of living. 

Knowing what you’ll need to earn to maintain your lifestyle gives you critical information that can help you decide whether moving to that area is worth it.

How to use the cost of living comparison calculator 

To use the cost of living comparison tool, take the ZIP code of where you now live and the ZIP code of the place you are considering moving and type those numbers into the tool. Also, type in your current income. Then, hit the “Re-Calculate” button. 

The calculator will instantly compare the two locations based on: 

• Cost of living
• Auto insurance cost
• Home insurance cost

You will also get comparisons for other expenses, such as housing, groceries, utilities, transportation, health care, and miscellaneous goods and services.

Calculate cost of living by state

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New York, NY Idaho, ID

$41,500

Cost of living in Idaho, ID, after-tax

Cost of Living

17% lower

in Idaho, ID, than New York, NY

Auto Insurance

26% lower

in Idaho, ID, than New York, NY

Home Insurance

8% higher

in Idaho, ID, than New York, NY

Compare cost of living: Idaho, ID, vs New York, NY

Cost in
Idaho, ID

------- vs -------

Cost in
New York, NY

Housing

-39%

Groceries

0%

Utilities

-23%

Transportation

+2%

Healthcare

-8%

Misc. Goods & Services

0%

Auto Insurance

-26%

Home Insurance

+8%

Auto Insurance

• New York, NY: $1,940
• Idaho, ID: $1,428
• % Change: 26% lower

Find Insurance Cost in Idaho, ID

Home Insurance

• New York, NY: $1,816
• Idaho, ID:
  $1,961
• % Change: 8% higher

Find Insurance Cost in Idaho, ID

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L O A D I N G

How we gather cost of living information

In compiling our list of the places with the highest cost of living, we looked at the average price of goods in more than 250 metro areas for the first three quarters of 2024.

This included average prices for 254 urban areas where data was available for at least two pricing periods. In a separate section, it included data for 276 urban areas where data was available for at least one pricing period. 

When urban areas had less than three pricing periods, we estimated prices so that we could have a complete set of observations. That means the annual average index includes actual and estimated prices. 

We took the average annual price for each item and calculated the index based on the most recent Consumer Expenditure Survey weights from the U.S. Bureau of Labor Statistics. 

Cheapest states to live in 

We found that Oklahoma and Mississippi are the states with the lowest cost of living. Here are the 10 states with the lowest cost of living and how they compare to the national average:

Most expensive states to live in 

As far as the most expensive states to live in, they tend to fall along the two coasts. Here are the 10 most expensive states to live in and how their cost of living compares to the national average:

Why does cost of living matter? 

A state’s cost of living plays a big role in how much you can save and grow your wealth. In high-cost areas, a modest income can leave little room for savings or financial growth after covering everyday expenses.

On the other hand, living in a lower-cost area can free up more of your budget. With essentials taking a smaller bite out of your income, you may have more flexibility to save, invest, or spend on things that improve your quality of life.

However, keep in mind that wages often mirror the cost of living. If you live in an expensive area such as San Francisco or Washington, D.C., your salary will likely be higher to account for that fact.

Your expenses and salary will likely be lower if you live in places like Kalamazoo, Michigan, or Charleston, West Virginia. 

What is a cost of living adjustment (COLA)? 

An annual cost of living adjustment (COLA)  helps Social Security and Supplemental Security Income (SSI) benefits keep pace with rising prices, protecting retirees’ and beneficiaries’ purchasing power. The adjustment is tied to inflation and is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by the U.S. Bureau of Labor Statistics.

The first COLA was introduced in 1975 to prevent fixed benefits from losing value over time as the cost of essentials, like food, housing, and healthcare, climbed. For 2024, Social Security and SSI benefits rose by 3.2%, reflecting the inflation experienced the previous year.

How the cost of living impacts your home and auto insurance rates

Many factors affect how much you pay for insurance, and location is one of the biggest. For example, living in an area prone to natural disasters — such as hurricanes, wildfires, or floods — typically drives up homeowners insurance premiums because of the higher risk of damage. Likewise, owning a high-value car that’s expensive to repair or replace can push your auto insurance rates higher.

The cost of living in your area can also influence insurance prices, but its impact isn’t always straightforward. In some cases, living in a higher-cost area can actually work in your favor. Expensive homes are often located in safer neighborhoods with lower crime rates, which can reduce the risk of theft or burglary and potentially lower both home and auto insurance premiums.

However, a higher cost of living doesn’t always mean lower risk or rates. Costly properties in high-risk locations, such as waterfront homes or houses in earthquake-prone regions, may face much higher premiums because insurers factor in the elevated risk of damage.

Methodology 

Our cost of living index evaluates several factors, which are weighted in terms of importance. Below are the eight main expense categories we used to gauge the cost of living, from most to least important:

• Miscellaneous goods and services (29%)
• Housing (28%)
• Groceries (16%)
• Transportation (9%)
• Utilities (9%)
• Health care (5%)
• Auto insurance (2%)
• Home insurance (2%)

We then ranked the states by those results. The base cost of living is always represented by 100; in this case, 100 represents the national average. Locations are then indexed against this number. For example, a state with a 110 on the cost of living index would be 10% higher than the national average..

Chris Kissell

Contributing Researcher

 

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Specializing in insurance and personal finance, Chris Kissell is a writer and editor whose work has been featured at Forbes, U.S. News & World Report, MSN Money, Fox Business, Yahoo Finance, Bankrate and Money Talks News. He is based in Denver.

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