Inflation is on the rise at a historic pace in the United States. The consumer price index surged 7.5% on an annual basis in January 2022, the highest increase in about 40 years. While wages have also climbed, they have not increased enough to offset rising prices for the typical American worker.
Inflation is being driven in large part by supply chain disruptions, which are limiting production capacity and the availability of certain goods and ultimately leading to higher prices. Pent-up consumer demand in the wake of COVID-19 shutdowns across the globe is exacerbating the problem. Recently, consumers have been feeling the pinch, particularly through higher food, housing, and energy prices.
While consumers across the country are paying more for goods and services now than they were a year ago, exactly how much they are paying depends largely on where they live, as some states have a far higher cost of living than others.
Using data from the Composite Cost of Living Index published by the Missouri Economic Research and Information Center, 24/7 Wall St. identified the cost of living in every state. States are ranked on their cost of living relative to the national average from lowest to highest. It is important to note that this index reflects the annual average cost of living in 2021 and does not account for recent price increases due to inflation.
Of the five specific consumer categories factored in the index – groceries, housing, utilities, transportation, and health care – housing appears to have an outsized impact on overall cost of living. In each of the five states with the highest overall cost of living, housing is the most expensive consumer category, with housing costs ranging anywhere from 73% to 215% more expensive than average. Meanwhile, in each of the 20 states with the lowest cost of living, housing ranks as the least expensive consumer category. Here is a look at the most expensive town to buy a home in every state.
Incomes tend to reflect differences in cost of living at the state level. In each of the 10 states with the lowest cost of living, the median household income is below the $65,712 national median, according to the U.S. Census Bureau’s American Community Survey. Similarly, median incomes are higher than average in nine of the 10 states with the highest cost of living. Here is a look at the income it takes to be middle class in each state.
Click here to see the most expensive states to live in
50. Mississippi
> Avg. cost of living in 2021: 16.7% less than avg.
> Most expensive category: Health care (5.3% less than avg.)
> Least expensive category: Housing (33.7% less than avg.)
> Median household income: $45,792 (the lowest)
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49. Kansas
> Avg. cost of living in 2021: 13.5% less than avg.
> Most expensive category: Health care (0.4% more than avg.)
> Least expensive category: Housing (27.4% less than avg.)
> Median household income: $62,087 (24th lowest)
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48. Alabama
> Avg. cost of living in 2021: 12.1% less than avg.
> Most expensive category: Utilities (0.7% more than avg.)
> Least expensive category: Housing (29.9% less than avg.)
> Median household income: $51,734 (5th lowest)
47. Oklahoma
> Avg. cost of living in 2021: 12.1% less than avg.
> Most expensive category: Utilities (4.9% less than avg.)
> Least expensive category: Housing (25.3% less than avg.)
> Median household income: $54,449 (8th lowest)
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46. Georgia
> Avg. cost of living in 2021: 11.2% less than avg.
> Most expensive category: Health care (3.3% less than avg.)
> Least expensive category: Housing (25.6% less than avg.)
> Median household income: $61,980 (22nd lowest)
45. Tennessee
> Avg. cost of living in 2021: 11.0% less than avg.
> Most expensive category: Groceries (5.3% less than avg.)
> Least expensive category: Housing (20.7% less than avg.)
> Median household income: $56,071 (9th lowest)
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44. Missouri
> Avg. cost of living in 2021: 10.2% less than avg.
> Most expensive category: Utilities (4.6% less than avg.)
> Least expensive category: Housing (19.7% less than avg.)
> Median household income: $57,409 (13th lowest)
43. Iowa
> Avg. cost of living in 2021: 10.1% less than avg.
> Most expensive category: Health care (0.1% less than avg.)
> Least expensive category: Housing (24.0% less than avg.)
> Median household income: $61,691 (21st lowest)
42. West Virginia
> Avg. cost of living in 2021: 9.5% less than avg.
> Most expensive category: Groceries (3.5% less than avg.)
> Least expensive category: Housing (21.4% less than avg.)
> Median household income: $48,850 (2nd lowest)
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41. Indiana
> Avg. cost of living in 2021: 9.4% less than avg.
> Most expensive category: Utilities (1.0% less than avg.)
> Least expensive category: Housing (21.7% less than avg.)
> Median household income: $57,603 (14th lowest)
40. Arkansas
> Avg. cost of living in 2021: 9.1% less than avg.
> Most expensive category: Groceries (6.9% less than avg.)
> Least expensive category: Housing (20.9% less than avg.)
> Median household income: $48,952 (3rd lowest)
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39. New Mexico
> Avg. cost of living in 2021: 9.0% less than avg.
> Most expensive category: Health care (1.3% less than avg.)
> Least expensive category: Housing (15.7% less than avg.)
> Median household income: $51,945 (6th lowest)
38. Ohio
> Avg. cost of living in 2021: 8.7% less than avg.
> Most expensive category: Groceries (0.8% less than avg.)
> Least expensive category: Housing (23.5% less than avg.)
> Median household income: $58,642 (15th lowest)
37. Michigan
> Avg. cost of living in 2021: 8.7% less than avg.
> Most expensive category: Transportation (3.2% more than avg.)
> Least expensive category: Housing (19.3% less than avg.)
> Median household income: $59,584 (19th lowest)
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36. Texas
> Avg. cost of living in 2021: 7.9% less than avg.
> Most expensive category: Utilities (3.2% more than avg.)
> Least expensive category: Housing (16.2% less than avg.)
> Median household income: $64,034 (22nd highest)
35. Louisiana
> Avg. cost of living in 2021: 7.0% less than avg.
> Most expensive category: Health care (0.6% less than avg.)
> Least expensive category: Housing (14.0% less than avg.)
> Median household income: $51,073 (4th lowest)
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34. Kentucky
> Avg. cost of living in 2021: 6.9% less than avg.
> Most expensive category: Utilities (4.7% more than avg.)
> Least expensive category: Housing (20.1% less than avg.)
> Median household income: $52,295 (7th lowest)
33. South Carolina
> Avg. cost of living in 2021: 6.4% less than avg.
> Most expensive category: Utilities (5.2% more than avg.)
> Least expensive category: Housing (20.4% less than avg.)
> Median household income: $56,227 (10th lowest)
32. Nebraska
> Avg. cost of living in 2021: 6.3% less than avg.
> Most expensive category: Health care (0.8% more than avg.)
> Least expensive category: Housing (13.4% less than avg.)
> Median household income: $63,229 (25th highest)
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31. Illinois
> Avg. cost of living in 2021: 5.7% less than avg.
> Most expensive category: Transportation (5.8% more than avg.)
> Least expensive category: Housing (13.4% less than avg.)
> Median household income: $69,187 (17th highest)
30. Wyoming
> Avg. cost of living in 2021: 5.7% less than avg.
> Most expensive category: Groceries (2.7% more than avg.)
> Least expensive category: Housing (18.7% less than avg.)
> Median household income: $65,003 (19th highest)
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29. North Carolina
> Avg. cost of living in 2021: 4.3% less than avg.
> Most expensive category: Health care (9.0% more than avg.)
> Least expensive category: Housing (11.4% less than avg.)
> Median household income: $57,341 (12th lowest)
28. Wisconsin
> Avg. cost of living in 2021: 3.6% less than avg.
> Most expensive category: Health care (11.9% more than avg.)
> Least expensive category: Housing (11.6% less than avg.)
> Median household income: $64,168 (21st highest)
27. North Dakota
> Avg. cost of living in 2021: 1.8% less than avg.
> Most expensive category: Health care (13.3% more than avg.)
> Least expensive category: Utilities (4.8% less than avg.)
> Median household income: $64,577 (20th highest)
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26. Utah
> Avg. cost of living in 2021: 1.0% less than avg.
> Most expensive category: Transportation (9.9% more than avg.)
> Least expensive category: Utilities (9.1% less than avg.)
> Median household income: $75,780 (11th highest)
25. Minnesota
> Avg. cost of living in 2021: Equal to national avg.
> Most expensive category: Health care (6.9% more than avg.)
> Least expensive category: Housing (9.8% less than avg.)
> Median household income: $74,593 (13th highest)
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24. Florida
> Avg. cost of living in 2021: 0.3% more than avg.
> Most expensive category: Groceries (5.6% more than avg.)
> Least expensive category: Health care (2.3% less than avg.)
> Median household income: $59,227 (17th lowest)
23. Montana
> Avg. cost of living in 2021: 0.7% more than avg.
> Most expensive category: Housing (6.3% more than avg.)
> Least expensive category: Utilities (12.0% less than avg.)
> Median household income: $57,153 (11th lowest)
22. South Dakota
> Avg. cost of living in 2021: 1.0% more than avg.
> Most expensive category: Housing (12.8% more than avg.)
> Least expensive category: Transportation (10.3% less than avg.)
> Median household income: $59,533 (18th lowest)
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21. Virginia
> Avg. cost of living in 2021: 1.8% more than avg.
> Most expensive category: Housing (11.5% more than avg.)
> Least expensive category: Transportation (9.6% less than avg.)
> Median household income: $76,456 (10th highest)
20. Idaho
> Avg. cost of living in 2021: 2.1% more than avg.
> Most expensive category: Transportation (11.7% more than avg.)
> Least expensive category: Utilities (17.7% less than avg.)
> Median household income: $60,999 (20th lowest)
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19. Pennsylvania
> Avg. cost of living in 2021: 2.5% more than avg.
> Most expensive category: Utilities (9.7% more than avg.)
> Least expensive category: Health care (4.6% less than avg.)
> Median household income: $63,463 (23rd highest)
18. Arizona
> Avg. cost of living in 2021: 3.2% more than avg.
> Most expensive category: Housing (7.7% more than avg.)
> Least expensive category: Health care (2.1% less than avg.)
> Median household income: $62,055 (23rd lowest)
17. Colorado
> Avg. cost of living in 2021: 5.3% more than avg.
> Most expensive category: Housing (16.4% more than avg.)
> Least expensive category: Utilities (11.6% less than avg.)
> Median household income: $77,127 (9th highest)
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16. Nevada
> Avg. cost of living in 2021: 6.3% more than avg.
> Most expensive category: Transportation (19.7% more than avg.)
> Least expensive category: Utilities (11.6% less than avg.)
> Median household income: $63,276 (24th highest)
15. Delaware
> Avg. cost of living in 2021: 7.9% more than avg.
> Most expensive category: Groceries (14.0% more than avg.)
> Least expensive category: Utilities (3.5% less than avg.)
> Median household income: $70,176 (16th highest)
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14. New Hampshire
> Avg. cost of living in 2021: 9.9% more than avg.
> Most expensive category: Health care (15.8% more than avg.)
> Least expensive category: Transportation (2.8% less than avg.)
> Median household income: $77,933 (8th highest)
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13. Washington
> Avg. cost of living in 2021: 11.6% more than avg.
> Most expensive category: Health care (21.2% more than avg.)
> Least expensive category: Utilities (9.2% less than avg.)
> Median household income: $78,687 (7th highest)
12. Maine
> Avg. cost of living in 2021: 15.0% more than avg.
> Most expensive category: Housing (36.6% more than avg.)
> Least expensive category: Groceries (2.2% more than avg.)
> Median household income: $58,924 (16th lowest)
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11. New Jersey
> Avg. cost of living in 2021: 15.2% more than avg.
> Most expensive category: Housing (36.6% more than avg.)
> Least expensive category: Health care (2.8% less than avg.)
> Median household income: $85,751 (3rd highest)
10. Vermont
> Avg. cost of living in 2021: 17.0% more than avg.
> Most expensive category: Housing (36.2% more than avg.)
> Least expensive category: Health care (0.7% less than avg.)
> Median household income: $63,001 (25th lowest)
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9. Rhode Island
> Avg. cost of living in 2021: 17.2% more than avg.
> Most expensive category: Utilities (27.6% more than avg.)
> Least expensive category: Health care (5.8% more than avg.)
> Median household income: $71,169 (15th highest)
8. Connecticut
> Avg. cost of living in 2021: 21.6% more than avg.
> Most expensive category: Housing (34.6% more than avg.)
> Least expensive category: Groceries (6.4% more than avg.)
> Median household income: $78,833 (6th highest)
7. Maryland
> Avg. cost of living in 2021: 24.0% more than avg.
> Most expensive category: Housing (65.9% more than avg.)
> Least expensive category: Health care (17.2% less than avg.)
> Median household income: $86,738 (the highest)
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6. Alaska
> Avg. cost of living in 2021: 27.1% more than avg.
> Most expensive category: Utilities (54.8% more than avg.)
> Least expensive category: Transportation (9.9% more than avg.)
> Median household income: $75,463 (12th highest)
5. Oregon
> Avg. cost of living in 2021: 30.1% more than avg.
> Most expensive category: Housing (72.6% more than avg.)
> Least expensive category: Utilities (9.8% less than avg.)
> Median household income: $67,058 (18th highest)
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4. Massachusetts
> Avg. cost of living in 2021: 35.0% more than avg.
> Most expensive category: Housing (77.6% more than avg.)
> Least expensive category: Utilities (11.1% more than avg.)
> Median household income: $85,843 (2nd highest)
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3. California
> Avg. cost of living in 2021: 42.2% more than avg.
> Most expensive category: Housing (101.9% more than avg.)
> Least expensive category: Health care (10.7% more than avg.)
> Median household income: $80,440 (5th highest)
2. New York
> Avg. cost of living in 2021: 48.2% more than avg.
> Most expensive category: Housing (130.1% more than avg.)
> Least expensive category: Utilities (0.2% less than avg.)
> Median household income: $72,108 (14th highest)
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1. Hawaii
> Avg. cost of living in 2021: 93.3% more than avg.
> Most expensive category: Housing (215.0% more than avg.)
> Least expensive category: Health care (15.3% more than avg.)
> Median household income: $83,102 (4th highest)
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