Living in the United States can be a vastly different experience depending on where you call home. A new study by Forbes Advisor reveals striking differences in the cost of living across the country, with coastal states dominating the list of most expensive places to reside.
Hawaii: Paradise at a Premium
Hawaii tops the list as the most expensive state, with an average annual cost of living of $55,491. This tropical paradise comes with a hefty price tag, driven by factors like housing shortages and high income taxes.
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What’s particularly concerning is the gap between living costs and income. As one Forbes Advisor analyst notes, “Despite having the highest cost of living, Hawaii also has the lowest annual average salary ($61,420) among these 10 states.” This leaves residents with a meager $5,929 in annual disposable income – the lowest in the nation.
The Coastal Conundrum
The study highlights a clear pattern: living near the ocean is expensive. All four West Coast states (California, Oregon, Washington, and Alaska) make the top 10 list. On the opposite side of the country, Northeastern states like New York, Massachusetts, and New Jersey also rank among the priciest.
This coastal concentration is significant, considering population distribution. As the report points out, “About 40% of the U.S. population lives on the coast, but the coast only accounts for less than 10% of the country’s land mass.” This density likely contributes to higher costs in these areas.
New York City stands out as a prime example of coastal expense. The city consistently ranks as one of the most expensive places to live globally, influencing the entire state’s cost of living.
Breaking Down the Numbers:
The Forbes Advisor team took a comprehensive approach to calculate these figures. They factored in annual expenses for:
- Housing
- Healthcare
- Taxes
- Food
- Transportation
Data sources included reputable organizations like C2ER, KFF, MIT Living Wage Calculator, and the U.S. Census Bureau.
Looking Beyond the Coasts:
While this study focuses on the most expensive states, it’s important to remember that more affordable options exist. Inland states and rural areas often offer a lower cost of living, though they may come with different economic opportunities and lifestyle considerations.
