Home Insurance Highest cost of living states in the U.S. The states with the highest cost of living include Hawaii, California, and Massachusetts. The cost of living index compares multiple categories against the national average to determine the relative expense of living in a particular state. View Carriers Please enter valid zip Compare top carriers in your area Written by Tonya SislerTonya SislerTonya Sisler's work focuses on making car insurance and financial topics clear, accessible and actionable for consumers. | Reviewed by Nupur GambhirNupur GambhirEditor-in-ChiefNupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.VIEW FULL PROFILESee moreSee less | Updated onApril 15, 2026 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. The highest cost-of-living states in the U.S. include Hawaii, California, and Massachusetts, where housing, groceries, utilities, healthcare, and transportation costs far exceed the national average. Limited housing supply, strong demand, and higher everyday expenses consistently make these states the most expensive places to live. Where you live directly impacts how far your income goes. While high-cost states may offer higher wages and job opportunities, those gains are often offset by steep housing and living expenses. In contrast, more affordable states benefit from lower taxes and fewer supply constraints, making it easier to manage costs and compare where your money stretches further. Understanding where costs run highest — and where they stay relatively low — can help you better evaluate how far your income will go and whether a move makes financial sense. 💡 How to manage costs in a high cost-of-living state Target your biggest expenses first — housing, transportation, and groceries offer the most room to save Look for categories that buck the trend, like Washington’s below-average utility costs despite a high overall index Factor in your full compensation package, not just salary — benefits and bonuses can help offset higher living costs Use a cost of living calculator before relocating to see how your day-to-day expenses would actually change Remember that wages matter as much as costs — a lower salary in an affordable state can stretch further than a higher one in an expensive state What are the top 10 highest cost-of-living states in the U.S.? The highest cost-of-living states in the U.S. include Hawaii, California, and Massachusetts, where overall expenses far exceed the national average due to high housing costs, limited supply, and elevated prices for everyday essentials. The cost of living index compares everyday expenses — such as housing, groceries, utilities, healthcare, and transportation — to the national average of 100. States above 100 are more expensive, while those below are more affordable. Housing carries the most weight because it makes up the largest share of household spending, while other costs like groceries and utilities play a smaller role. The top 10 highest cost-of-living states are: Hawaii: 86% above the national average, driven by a housing index of 306.40 due to limited land and high import costs. Homeowners spend $14,384/month on average; renters spend $8,035/month. California: 43% above the national average, with a housing index of 200.52 — double the national average — due to land costs and zoning restrictions. Homeowners spend $12,195/month on average; renters spend $6,650/month. Massachusetts: 41% above the national average, with a housing index of 195.50 and utilities index of 152.45, driven by a housing shortage and strong economy. Homeowners spend $12,673/month on average; renters spend $7,137/month. District of Columbia: 40% above the national average, with a housing index of 217.60 due to a shortage fueled by high-paying job growth. Homeowners spend $11,833/month on average; renters spend $7,267/month. New York: 25% above the national average, with a housing index of 173.03 driven by supply shortages and strict zoning statewide. Homeowners spend $10,436/month on average; renters spend $6,043/month. Alaska: 25% above the national average, with a utilities index of 154.10 and healthcare index of 147.90 due to remoteness and limited goods access. Homeowners spend $10,536/month on average; renters spend $5,716/month. Maryland: 15% above the national average, with a housing index of 135.70 driven by limited supply and proximity to D.C. Homeowners spend $9,575/month on average; renters spend $5,840/month. New Jersey: 15% above the national average, with a housing index of 138.88 due to high property taxes and limited supply. Homeowners spend $9,448/month on average; renters spend $6,064/month. Vermont: 14% above the national average, with a housing index of 130.30 driven by limited supply, high taxes, and limited access to goods. Homeowners spend $9,452/month on average; renters spend $5,989/month. Washington: 14% above the national average, with a housing index of 126.48 due to a housing shortage, high taxes, and energy prices. Homeowners spend $9,991/month on average; renters spend $5,518/month. 💡 Where to find savings in high-cost states Shop at local farmers markets and regional grocery stores, which often have fresher produce at lower prices than national chains Audit your utility usage — small changes like LED bulbs and smart thermostats add up over time Use in-network healthcare providers and take advantage of preventive care, which is often covered at no extra cost Compare car insurance rates annually, as premiums vary significantly by state Look for free or low-cost entertainment like parks, community events, and local libraries instead of paid venues Use public transit where available to cut down on gas, parking, and car maintenance costs What makes these states so expensive to live in? Housing is the biggest driver of high living costs across most of these states. Limited land supply, strict zoning regulations, and housing shortages push prices well above the national average — particularly in Hawaii, California, Massachusetts, and D.C. Beyond housing, a few other factors push costs higher: Remote location: Alaska’s distance from the mainland makes goods, utilities, and healthcare significantly more expensive to access Strong job markets: D.C. and Massachusetts attract high-earning workers, increasing demand for housing and pushing up prices High taxes: Vermont, New Jersey, and Washington all cite taxes as a key contributor to their elevated cost of living Energy and utilities: Alaska and Massachusetts both carry above-average utility costs, adding to everyday expenses What are the biggest expenses in high-cost states? The biggest expenses in high-cost states are typically housing, groceries, and utilities, with states like Hawaii leading in groceries and utilities, and California and Massachusetts standing out for high housing costs. Not all states are expensive for the same reasons. In each category, certain states stand out well above others, so let’s break down where costs are highest across housing, groceries, utilities, healthcare, and more. Which states have the highest grocery costs? Hawaii has the most expensive grocery costs, with an index of 131.60, which is almost 32% above the national average. Alaska comes in a close second with an index of 127.57. High import costs contribute significantly to food costs in both states. Which states have the highest housing costs? Hawaii’s housing index is 306.40, 200% above the national average, primarily due to limited housing space and high demand. Additionally, materials must be imported, which increases housing prices. “Hawaii’s cost of living is higher than other states due to a combination of factors, including geography, transportation costs, limited land, and workforce challenges, says James Kunane Tokioka, director of Hawaii’s Department of Business, Economic Development & Tourism. “To address this, the state government and other entities have focused efforts on building affordable housing; providing tax relief, financial assistance, and social support; and investing in our infrastructure.” Which states have the highest utility costs? Hawaii has the highest utility costs, with an index of 200.10, double the national average. Hawaii imports its fuel, which significantly increases utility costs due to high import and transportation expenses tied to its remote location. Which states have the highest healthcare costs? Alaska has the highest healthcare costs, with an index of 147.90, nearly 50% above the national average. Healthcare is more expensive in Alaska due to its remote location and low population, which increases the cost of transporting supplies and medical professionals. StateAverage cost of living indexPercent difference from national averageHawaii185.9086%California142.5343%Massachusetts141.1541%District of Columbia140.4040%New York124.8425%Alaska124.2724%Maryland115.3015%New Jersey114.7815%Vermont114.3014%Washington114.2814%Connecticut112.6713% Powered by: How does a high cost of living affect your lifestyle? A high cost of living reduces your disposable income, forcing more of your paycheck toward essentials like housing and groceries — and leaving less for saving, hobbies, and long-term financial planning. The impact shows up in everyday ways: Less living space: Higher housing costs often mean downsizing or renting in a less desirable area to stay within budget Smaller grocery haul: Your dollar simply doesn’t stretch as far — a cup of coffee costs $7.57 in Alaska compared to $5.10 in Rhode Island Higher everyday bills: Gas, healthcare, and childcare also vary widely by location, and those differences add up fast Limited ability to save: When more income goes toward essentials, there’s less left over for emergencies, retirement, or personal goals These trade-offs can influence some of life’s biggest decisions — where to work, where to raise a family, and where to retire. Can living in an expensive state still be affordable? Not every category is expensive in high cost-of-living states. Some everyday expenses — like utilities or transportation — can still fall below the national average, helping to offset higher housing or healthcare costs. Washington is a good example. Despite sitting 14% above the national average overall, its utilities index is 93.26, below the national average, giving residents one area where they can reliably save. “Residents should also be aware of how their wages relate to their cost of living,” says Alec Romero, research analyst for the Center for Regional Economic Competitiveness. “For example, even if a Civil Engineer in New York makes around $116,000 annually and one in North Dakota makes $95,000 annually, the lower cost of living in North Dakota allows that salary to stretch further. Even if a job offers a higher salary in one location, differences in the cost of living can influence whether someone decides to make the move.” 💡 How to find affordability in an expensive state Research individual expense categories, not just the overall index — some may be below average Look at suburbs or neighboring areas where costs are lower but job access remains strong Factor in employer benefits like commuter assistance or healthcare coverage, which can offset local costs How to manage your budget in a high-cost state Living in an expensive state doesn’t have to mean financial stress. With the right approach, you can offset higher costs and make your money go further. Review your finances first: Compare your income to your monthly expenses so you know exactly where your money is going before making any changes. Target your biggest expenses: Housing, transportation, and groceries are your largest costs — downsizing, using public transit, or shopping smarter can make a meaningful dent. Trim everyday spending: Smaller habits add up — choosing generic brands, reducing energy use, and cutting unnecessary subscriptions can free up more than you’d expect. Factor in your full compensation: A higher salary, bonuses, or strong employer benefits can go a long way toward offsetting a higher cost of living — make sure you’re weighing the full picture, not just your base pay. Is a higher cost of living worth a better quality of life? Higher costs often come with real advantages. States like Washington D.C. tend to offer stronger job markets, better healthcare access, more schools to choose from, and a wider range of dining and entertainment — benefits that can genuinely improve day-to-day life. That said, cost is still a real factor. Financial stress, limited homeownership options, and stretched budgets are common challenges in expensive states, and a higher salary doesn’t always make up the difference. The best approach is to weigh what you’d gain against what you’d give up — and be honest about what matters most to your lifestyle and long-term financial goals. 💡 Questions to ask before moving to a high-cost state Will your salary increase enough to offset the higher cost of living? Which expenses matter most to your lifestyle — housing, healthcare, or everyday costs? Are there lower-cost areas within the state that still offer the lifestyle benefits you’re looking for? What factors drive a high cost of living? A high cost of living is shaped by a combination of economic, geographic, and policy factors that vary from state to state. “Many factors can affect cost of living, including proximity to and availability of producers of goods and services, inflation, nominal wages, state and local government taxes and regulations, and overall local market conditions,” says Alec Romero, research analyst for the Center for Regional Economic Competitiveness. The most common drivers include: Housing demand and availability: When demand outpaces supply — due to population growth, zoning restrictions, or limited land — housing costs rise and pull overall living costs up with them State and local taxes: Higher income, property, and sales taxes directly increase what residents pay each month Geographic and import costs: Remote areas like Alaska face higher prices for goods and services simply because of the cost of getting them there Wages and job market conditions: High-paying industries attract workers and drive up demand for housing and services, as seen in D.C., Maryland, and Northern Virginia Tourism and desirability: Popular destinations can shift some cost burden to visitors, but high demand still drives up prices for residents year-round Compare your state’s cost of living before you move It’s important to compare the cost of living by state when considering a move. While you may be making a higher salary, it won’t be helpful if the cost of living is much higher than you’re used to. Our cost of living calculator is a simple way to compare your current location with a high-cost state to see how your day-to-day expenses may differ. Enter your current state and where you are considering moving, along with your current salary. This allows you to compare your current expenses with those of another state. Cost of living calculator by ZIP code Moving From Please enter valid zip Moving To Please enter valid zip Current income after-tax $ Please enter salary Value must be less than 10 digit Re-Calculate Data updated on: Q2 2025 We use the latest available data from C2ER and update it quarterly to ensure our cost of living calculator remains accurate and up to date. Sorry the data for ZIP 94404 is not available. We do not have data for ZIP code XXXXX& XXXXX, please select from the available areas. Try to identify the areas that are similar to the desired ZIP code, the nearest area is a good place to start but it may not be the best substitute. City from Select city City to Select city Update New York (Brooklyn) City, NY Boise City, ID $32,000 Cost of living in Boise City, ID, after-tax Cost of Living 36% lower in Boise City, ID, than New York (Brooklyn) City, NY Auto Insurance 46% lower in Boise City, ID, than New York (Brooklyn) City, NY Home Insurance 33% lower in Boise City, ID, than New York (Brooklyn) City, NY Compare cost of living: Boise City, ID, vs New York (Brooklyn) City, NY Cost in Boise City, ID ------- vs ------- Cost in New York (Brooklyn) City, NY Housing -63% Groceries -10% Utilities -35% Transportation -3% Healthcare -20% Misc. Goods & Services -4% Auto Insurance -46% Home Insurance -33% Auto Insurance New York (Brooklyn) City, NY: $2,453 Boise City, ID: $1,321 % Change: 46% lower Find Insurance Cost in Boise City, ID Home Insurance New York (Brooklyn) City, NY: $2,694 Boise City, ID: $1,809 % Change: 33% lower Find Insurance Cost in Boise City, ID Get this report NOW! GO Email sent successfully. Unable to send the email. OR L O A D I N G How to use cost of living comparison calculator To use the tool, enter the Zip code to get the most accurate result. Cities can have multiple Zip codes, so by entering the city name, you'll get the average for all Zip codes in that city. We may not have cost-of-living data for some non-metropolitan areas. In those cases, we provide the cost-of-living information for the nearest Zip code with available information. The cost of living index lets you compare one area’s costs with another. Enter where you live and the information about another community. Provide your income and calculate the cost of living. Our tool shows what you’ll need to earn to maintain the same standard of living. The tool also highlights the cost differences for each category: housing, groceries, utilities, transportation, health care, auto insurance, and home insurance. The cost of living tool additionally includes how much you’d save on home and auto insurance. Enter your information below and compare the cost of living between two places. Frequently asked questions What is the cost of living index, and how is it measured? The cost of living index compares standard expenses to a national average, represented as 100. Any area with an index above 100 has a cost of living higher than average, while regions with an index below 100 have a lower-than-average cost of living. Which U.S. state has the highest cost of living? Hawaii has the highest cost of living in the U.S., primarily due to high housing costs and the need to import many goods. What category affects the cost of living the most? Housing has the most significant impact on the cost of living in an area, as it is where most residents spend the majority of their income. How much money do you need to live comfortably in a high-cost state? The amount of money needed to live comfortably in a high-cost state varies significantly from person to person. You need to consider the number of people in your household, typical expenses, housing costs, lifestyle, and other factors to determine the amount of money you need. Are high salaries in expensive states enough to offset costs? Whether a high salary is enough to offset costs in an expensive state depends on factors such as housing costs, tax rates, and the cost of living in a specific area. Your lifestyle and spending also impact whether your salary can offset high costs. Methodology The cost of living index compares the costs of groceries, housing, utilities, transportation, healthcare, and miscellaneous expenses across states in the U.S. with the national average, which is represented as 100. So, if a state has a cost of living index of 120, the cost of living in that state is 20% above the national average. Tonya Sisler . .Tonya Sisler's work focuses on making car insurance and financial topics clear, accessible and actionable for consumers. In case you missed it What is HO-6 condo insurance and how much does it cost? Average homeowners insurance cost by ZIP code in 2026 What is dwelling coverage and how much do you need? Personal liability insurance: What it is and why you need it Hurricanes and home insurance: How hurricane insurance works How replacement cost coverage works when you file a claim How much do claims increase home insurance premiums? 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By Les Masterson $400K home insurance cost calculator By Zack Sigel Homeowners insurance rates by state: See how your state compares in 2026 By Alisha Ambre Average homeowners insurance cost by ZIP code in 2026 By Barry Eitel Cost of living by state By Chris Kissell Cost of living calculator By Nupur Gambhir On this page What are the top 10 highest cost-of-living states in the U.S.?What makes these states so expensive to live in?What are the biggest expenses in high-cost states?How does a high cost of living affect your lifestyle?Can living in an expensive state still be affordable?How to manage your budget in a high-cost stateIs a higher cost of living worth a better quality of life?What factors drive a high cost of living?Compare your state’s cost of living before you moveFrequently asked questionsMethodology ZIP Code Please enter valid ZIP See rates (844) 761-9316