7 Most Expensive States to Live in the U.S.

Business Cheatsheet ^ | October 28, 2014 | Erika Rawes

[Slings and Arrows]

As most of us already know, an equal salary can stretch much further in one place than in another. If you earn at least $75,000 per year, you earn a comfortable salary. At this income level, you are said to have reached the point where you really don’t need any more money to thrive. In each state, however, this $75,000 has to be adjusted to account for costs of living differences.

A few states, however, like Minnesota, Pennsylvania, Colorado, Nevada, Florida, and Wisconsin are right around the benchmark. That is, even when adjusting for cost of living, these states will produce a monetary amount that is relatively similar to the nationwide reference point.

Recently, we shared the most inexpensive states to live in the U.S. Now, let’s check out the most expensive states. Do you live in an expensive state? How much does it cost to live, eat, and go out on the town in these higher priced locations? We’re also going to take it one step further and answer the question: how much of an annual salary do you need in each of these states to live comfortably at that $75K level?

*These states are ranked in order based on their overall cost of living. All cost of living index data comes from the Missouri Economic Research and Information Center (MERIC) first-quarter report, and pricing data comes from Zillow, Numbeo.com, and other resources.

[Slings and Arrows]

7. CT

6. CA

5. NJ

4. AK

3. NY

2. DC

1. HI

Notice any trends?

[Jack Hydrazine]

New Jersey?

[Alberta's Child]

Hawaii and Alaska are expensive places to live because of the high cost of living in cold weather (Alaska), the attractive weather (Hawaii) and the high cost of shipping for most consumer products.

The other locations are places where a very high portion of the population lives in urban areas where the cost of real estate is high.

[Slings and Arrows]

There are many urbanized areas that are much less expensive than the states listed.

[Lurkina.n.Learnin]

California is just like the rest of the country. It’s not one size fits all. There is a lot of difference between living in San Francisco and some rural area inland.

[texas booster]

Urban dwellers tend to have very high rates of welfare, police and unions.

State taxes are very high and all that drives up the cost.

But you are correct in that the East Coast megalopolis and the So. California megalopolis create a vortex to push prices up.

[Tax-chick]

Hawaii and Alaska have obvious reasons for a high cost of living.

[Fai Mao]

“Notice any trends?”

Hawaii would be expensive anyway as everything has to be imported and should be viewed as an outlier. The others all have some definite commonality

[Blood of Tyrants]

Except for Alaska they are a all liberal strongholds.

[Mears]

I didn’t know D.C. had become a state.

.

[Ghost of SVR4]

Wolf will probably be elected in PA Nov 04; he wants $15.00 an hour minimum wage; PA will make the list very quickly as will its un-employment rate and how much more PA will be taking from the working base (on top of Corbett’s idiot move to raise state gas tax’s that are set to go up AGAIN in 2015).
If you have any investments in PA muni-bonds, GET. OUT. NOW. This state is going to collapse and un-employment is going to surge (only the “numbers” will be played with so as not to reflect that; bank on it).

[OneWingedShark]

Why is DC included in this list, it isn't a state — and it would be terrible if it ever became one: then the States would not be co-equals, but instead one would rule over the others. (Not much of a difference than now, but once the some states are more equal than others becomes entrenched it'll probably be impossible to have a real republic.)

[BunnySlippers]

I am an LA native.

I can tell you a lot of CA is gorgeous. And the weather is good through most of the state.

But if you’re going to make decent money to live comfortably, with a car, your own home and the amenitites, you’ve got to live in a big city.

But then, I love living in LA anyway ...

[Slings and Arrows]

True - last link in the logistical chain. The others, OTOH...

[Slings and Arrows]

Bingo.

[Slings and Arrows]

> I didn’t know D.C. had become a state.

A state of mind, for sure.

[combat_boots]

You just cannot beat a redwood grove. Or Bixby bridge.

You can not do it.

[nascarnation]

I’m sure you’re correct, but with all the legislation they’ve passed with delayed effects (like cap and trade) I expect the COL in Cali to skyrocket for everyone.

[combat_boots]

I used to want to live in Big Sur like nobody’s business. Good thing I never did. I’d have made a horrible hippie.

[bigbob]

Again, state-based comparisons are meaningless