Do you know the cost of living in a state? In static terms, the cost of living is defined as how much money you need to earn every year to live a decent life, as the cost of living in each state varies from state to state.
Though the cost of living will vary significantly from state to state, it is important to know where your ranking is. Whether you are looking for a change in scenery or trying to save up some of the money, then this blog is for you to read. Let’s get started.
Cost of Living In Each State
Much like the cost of living by the country varies, the cost of living by state also differs. Generally, while working out the cost of living in an area, the annual mean wage, median monthly rent, and the value of a dollar will be considered to make up for the average cost of living in that particular area.
States With The Best Cost of Living To Income Ratio In 2024
- Hawaii: Hawaii’s cost of living index is 193.3, the highest in the nation means that the cost of living in the state is twice the national average. This state is also the most expensive in the whole U.S. across all the metrics except healthcare. Hawaii’s housing costs are three times higher than the national average, with a standard single-family home averaging $730,511. Renters pay an average of $2,399 for a two-bedroom apartment in this state. Though Hawaii has the highest cost of living, this country has the lowest poverty rates. Hawaii’s living wage for a Hawaiian family is $107,702 a year, and the median income for a family of four is $118,223.
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- Cost of Living: 193.3
- Groceries: 152.9
- Housing: 315
- Utilities: 164.2
- Transportation: 133.7
- Health: 115.3
- Miscellaneous: 126.7
- New York: New York’s cost of living index is 148.2, second-highest in the country. Renting a house in New York is the most expensive thing to do in the United States, costing around 1.5 times more than the national average. The standard price for a single-family home in New York is around $373,880. Rent in New York runs for an average two-bedroom apartment in the state is $1,659. The living wage for a family of four in New York is $110,255. The median income for a family of four in New York is $111,054 annually.
- Cost of Living Index: 148.2
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- Groceries: 118.2
- Housing: 230.1
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- Utilities: 99.8
- Transportation: 108.7
- Health: 102.5
- Miscellaneous: 113.7
- California: California has the nation’s third-largest cost of living index, which is $142.2. California’s transportation costs are the second largest in the country due in part to high gas prices in the state. Housing in California is twice the national average, with a standard single-family home priced at $683,996. The average rent for a two-bedroom apartment in California is $1,884. The living wage for a family of four in California is $110,255; however, the median family income is $105,232.
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- Cost of Living Index: 142.2
- Groceries: 113.7
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- Housing: 201.9
- Utilities: 124.3
- Transportation: 131.7
- Health: 110.7
- Miscellaneous: 110.3
States With The Lowest Cost of Living To Income Ratio In 2024
- Mississippi: Mississippi has the lowest cost of living in the U.S., with a cost of living index of 83.3. Mostly, Mississippi’s housing index is 66, which is the weakest in the country. The median price for a single-family home is $140,818, and the average rent for a two-bedroom apartment is $991. Mississippi also has the lowest transportation cost in the nation. The living wage in Mississippi is $80,523.
- Cost of Living Index: 83.3
- Groceries: 92.2
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- Housing: 66.3
- Utilities: 90.4
- Transportation: 86.7
- Health: 94.7
- Miscellaneous: 90.9
- Kansas: The cost of living in Kansas is 86.5, which is the second-lowest in the nation. Housing in Kansas is cheap, with an index of 72.6. The average single-family in the state costs $176,898. If a family chooses to live in Kansas in a two-bedroom apartment then the average cost is $995 a month. A four family in Kansas requires an annual earning of $89,353 to cover their expenses. The median income for a family of four is $92,980.
- Cost of Living Index: 86.5
- Groceries: 91.7
- Housing: 72.6
- Utilities: 100.2
- Transportation: 97.3
- Health: 100.4
- Miscellaneous: 88.4
- Alabama: Alabama has a cost of living index of 87.9, the third lowest in the country. Alabama has the second-lowest housing costs across the whole state, with the average single-family house selling for $170,184. Rent for a two-bedroom apartment is at an average of $1,046 across the state. The living wage in Alabama for a family of four is $80,777. The median income for a family of four is $80,845 a year.
- Cost of Living Index: 87.9
- Groceries: 98.2
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- Housing: 100.7
- Utilities: 100.7
- Transportation: 92.7
- Health: 91.2
- Miscellaneous: 94.3
What Do You Mean By Cost Of Living?
The cost of living is a path of measuring how much money it will cost to live a standard quality life. As fees and income differ throughout the world, a cost of living index shall help you in working it out regularly and roughly based on how much money it will take to live in a particular area. The cost of living can be described by looking at the country, state by state, if you are already settled in a country where you want to live in.
How Does The Cost of Living Index Work?
The cost of living is measured by the economists who are looking at various factors which are within each country. Things such as food, housing taxes, and healthcare are increased in the pricing sector and as compared to other countries to see whether it is more expensive or not. This measurement does not come without flaws however, this way of cost of living comparison is not 100% accurate as each area has its buying practice.
Cultural differences play a pivotal role in buying practices so it can be challenging to decide upon what prices should be compared. For example, a French essential such as camembert will never be in the shopping cart of an individual residing in Tokyo. Cost of living indexes are an easy way where you can compare prices of average living expenses before you make any kind of life-changing decisions.
Conclusion
As you plan to relocate, think about the cost of living. When the cost of living is greater, it could hurt your finances even if you earn more than average with your current salary. It might be wiser to work remotely from where you currently are and skip the pricey move if your employer agrees. If you are looking for a free paystub generator, then online paystub should be your choice!
