In this article, we look at the most expensive US state to live in. We have created a list of the costliest states in America, for the full free list, visit 20 Most Expensive US States To Live In.
Consumers in the United States are experiencing the impact of burgeoning prices like never before. The cost of living in the country has increased considerably since the advent of the coronavirus pandemic. According to a report by Bloomberg in November last year, goods that cost $100 before the pandemic were now worth around $120. Prices have surged over the last three-to-four years by nearly as much as they did in a decade prior to Covid-19.
A survey conducted by the Bank of America Corporation (NYSE:BAC) in September 2023 highlighted that 67% of the employees felt that inflation was rising quicker and higher than their salaries were, reiterating the stressful impact of the cost of living crisis on Americans. The figure was up from Bank of America Corporation (NYSE:BAC)’s last survey held in 2022, in which it was measured at 58%. In order to ensure the financial wellness of its employees, the company announced to increase its minimum wage from $22 to $23 last year, and plans on raising it further to $25 by 2025. The move would enable all employees of Bank of America Corporation (NYSE:BAC) to earn at least $48,000 per annum.
Another company that has been active in making cost of living adjustments to employees’ wages and salaries is Amazon.com, Inc. (NASDAQ:AMZN), which in September last year, announced to raise the hourly wage of its delivery and warehouse workers from $19 to $20.5 per hour. Amazon.com, Inc. (NASDAQ:AMZN) has been working to improve the financial well-being of its employees for quite some while now, starting in 2018, when it raised the company’s minimum wage to $15 per hour, which at the time was double of the federal minimum wage in the United States. While declaring the increase in wage then, Amazon.com, Inc. (NASDAQ:AMZN) also stated that it would engage policymakers in Washington and across the country to increase their minimum wage levels.
While some companies are making the right moves by increasing wages, a lot of others are just not able to do so due to the financial challenges facing them. In 2022, Microsoft Corporation (NASDAQ:MSFT) doubled its merit increases for certain employees, but a year later in May 2023 held back on raising salaries for full-time employees citing economic challenges and business priorities. The salary freeze has continued at Microsoft Corporation (NASDAQ:MSFT) for well over a year now. However, the company’s executive vice president of Microsoft’s cloud and AI group, Scott Guthrie, stated this month that Microsoft Corporation (NASDAQ:MSFT) was considering resuming performance-based increments for some employees.
Similarly, Intel Corporation (NASDAQ:INTC) in February last year cut salaries of its employees after a loss in market share and a lower sales forecast. The deduction ranged from 5% for mid-level employees to 25% for top executives, including Intel Corporation (NASDAQ:INTC)’s chief executive Pat Gelsinger, whose salary also got slashed. Hourly wage workers, however, remain unaffected.
By the way, before we dive deep into the list of the costliest states in the US to live in, you can also read about 20 Countries With The Cheapest Cost Of Living For US Citizens.
Methodology
The most expensive US states to live in are ranked in ascending order of their cost of living index., and is from 2023 – the latest year for which figures are available. The cost of living index reflects the differences in prices of goods and services across regions or times in comparison to the national average. For instance, if a product costs $100 on average in the United States, and costs $120 in New York, the state of New York would have a cost of living index of 120.
The most expensive US state to live in is Hawaii!
1. Hawaii
Cost of Living Index: 182.1
Hawaii is the most expensive US state to live in, with 82% higher cost of living than the national average in the United States. A key reason why the state has always been expensive is its location, which is 2000 miles southwest of the American mainland in the Pacific Ocean. Most of the basic items in the state are shipped from elsewhere. Moreover, the state has a staggering high housing index of 313.1. Utilities are 51% and transportation 35% more expensive in Hawaii than the national average.
To learn about other US states with a high cost of living, you can check out our detailed report 20 Most Expensive US States To Live In.
At Insider Monkey, we delve into a variety of topics, ranging from cost of living across regions to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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