These are America’s ten most expensive states as inflation continues to rise.
The cost of living has been rising for a long time now, and it is rising at a rate that has not been seen in many years, despite the fact that inflation varies from state to state.
Families and businesses are mobile now more than ever. Many people are looking for locations with lower costs.
The states are ranked in America’s Top States for Business survey using an index of expenses for a variety of goods and services.
These are America‘s ten most expensive states as inflation continues to rise.
Although state-by-state inflation rates vary, the cost of living is rising at a rate that hasn’t been seen in years.
More than ever, families and businesses are relocating. Many folks are looking for a location that is more affordable.
Cost of living is a critical component of our methodology because it is crucial. We rank the states based on an index of pricing for a wide range of products and services. According to the Council for Community and Economic Research‘s (C2ER) 2021 Average Cost of Living Index, average costs for a few items last year are also mentioned below. Since prices have increased this year, we have added the U.S. Bureau of Labor Statistics’ most recent regional inflation rate year-over-year.
These ten states are being affected the hardest by inflation.
1. Hawaii
The world is already becoming a more complicated place to live in financially, with the federal inflation rate in March reaching 8.5 per cent, its highest level since 1981. In terms of the most costly countries to live in, the United States ranks a modest 26th. Hawaii, however, has been making progress toward eventually becoming out of reach for both residents and visitors. Before New York and California, it was listed as the most expensive state in the U.S.
Food, housing, healthcare, and transportation are all fundamental needs that must be met for a person to survive in any state and are all factored into the cost of living calculation.
According to PayScale, Hawaii has an 88 per cent higher cost of living than the country. In addition, electricity and groceries cost 89 per cent and 62 per cent higher than the national average, while transportation costs 65 per cent more. A place to live in Hawaii may cost more than 200 per cent of the national average, with the housing market being one of the main factors.
Though it may come as a surprise, Hawaii has the most outstanding healthcare and the fourth-lowest poverty rate despite its cost of living being twice as high as the national average. As a result of the extremely high average household income of $83,102, which has historically made Hawaii a popular tourist destination, visitors with lower payments are quickly priced out, especially for more extended visits.
Most of Hawaii’s commercial infrastructures are centred around tourism, accounting for 21% of the state’s GDP. Despite a record 10.4 million visitors in 2019, overtourism typically leaves Hawaii locals with horrible taste due to overuse of the state’s natural and cultural resources, price increases, rental shortages, etc.
It appears that locals and visitors are losing out due to the high cost of living, which is increasing travel prices and luring primarily high-income tourists who raise prices even further. What the post-pandemic economy and tourism will bring is still unknown.
Even though it is currently the off-season for travel, Hawaii is preparing for another summer of extreme tourism because the epidemic appears to be nearing its end and because the state, which was among the most cautious around COVID, eliminated its mask requirement.
Paradise is costly. It would help if you still ate even when you find housing, which often costs twice as much as the mainland. And even for necessities, that is pricey. You will pay twice as much for a 5-pound bag of sugar in Honolulu as you would in Danville, Illinois. Bananas? Are they twice as pricey as they are in Colorado’s Pueblo. a trip to the physician’s office? Here in the most costly state to live in, Florida, the price will be 65% higher than in Orlando.
2022 Cost of Living Score: 1 out of 50 points (Top States Grade: F)
Consumer Price Index (May, Honolulu Area): UP 7%
Average Home Price (Honolulu): $1,399,439
Half Gallon of Milk: $3.92
Monthly Energy Bill: $369.53
2. Newyork
Inflation rates reached a 40-year high on Friday, pushing New Yorkers to reduce spending and even go into debt due to skyrocketing price hikes.
According to the U.S. Bureau of Labor Statistics’ most recent monthly data, the average price of all consumer products increased 8.6 per cent in the year that ended in May.
Since 1981, when most Americans were born, prices have increased at their highest rate. As a result, many regular people are experiencing sticker shock while shopping for groceries, gas, or a new house.
The cost of living in New York City is exceptional. A home in Manhattan costs around twice as much as its closest rival and about ten times as much as one in Scranton, Pennsylvania. And it goes beyond housing. Purchasing a New York steak in New York is not a bargain. It will cost you 50% more in Brooklyn than in Joplin, Missouri. Despite being high, New York’s inflation is relatively low compared to the rest of the nation. But that might be partly due to the initial sky-high pricing.
2022 Cost of Living Score: 2 out of 50 points (Top States Grade: F)
Consumer Price Index (New York-Newark-Jersey City): UP 6.3%
Average Home Price (Manhattan): $2,354,006
Half Gallon of Milk: $2.84
Monthly Energy Bill: $174.72
3. California
The third most expensive state in the union in California. It has a 142.2 cost of living index. Transportation expenditures are second-highest in the nation because California has the most expensive petrol. The average cost of a single-family home in this area is $683,996, double the national average for housing expenditures. California has the second-lowest rate of home ownership in the country. T In California, a two-bedroom apartment rents on average for $1,614. However, prices are far higher in large cities like Los Angeles and San Francisco, where rents are among the highest in the nation.
For a family of four, the median family income in California is $105,232, falling short of the state’s $110,255 minimum wage requirement. Additionally, California has the country’s most significant percentage of homeless people.
How severe is the housing scarcity in California? According to a 2015 analysis by the state’s legislative analyst, the state has been constructing around 110,000 fewer housing units than are required to meet demand. And this is something that California has been doing for almost 30 years! This results in an ongoing scarcity of nearly 3.5 million dwelling units. And increased prices follow from that. If you’re lucky, a 2,400-square-foot house in San Francisco will run you about $1.4 million.
The comparable home may sell for around $400,000 in Phoenix, a metro area of similar size. And let’s not even talk about the nation’s highest gas costs.
2022 Cost of Living Score: 3 out of 50 points (Top States Grade: F)
Consumer Price Index (May, West Region): UP 8.3%
Average Home Price (San Francisco): $1,396,782
Half Gallon of Milk: $2.55
Monthly Energy Bill: $266.44
4. Massachusetts
Inflation is a severe concern to inhabitants of Massachusetts.
Returning to New England, the Bay State has been hit hard by rising food, energy, and housing expenses. According to the Bureau of Labor Statistics, demand for natural gas heating has increased by more than 40% in the Boston area since last year. Your milk will cost twice as much in Boston as it would in Detroit due to a more than 15% increase in dairy products.
The state’s finances are brimming over in Massachusetts, where unemployment has been at its lowest since the pandemic started. But on top of the state’s already high cost of living, a 40-year high inflation rate is putting pressure on people in ways primarily hidden in the more positive economic figures, weakening their financial security and faith in the economy.
The necessities of life are being skipped by residents, as well. They are cancelling vacation plans and using money to cover their monthly obligations. Some even question whether they can afford to stay here much longer.
2022 Cost of Living Score: 4 out of 50 points (Top States Grade: F)
Consumer Price Index (May, Boston-Cambridge-Newton Area): UP 7.5%
Average Home Price (Boston): $815,930
Half Gallon of Milk: $3.07
Monthly Energy Bill: $233.39
5. Oregon
On paper, salaries in Oregon are increasing quickly. But that’s not the whole picture, as anyone who has lately visited a grocery store, gas station, or brewpub can attest.
According to recent survey data released by the Oregon Employment Department, the average hourly pay in the state’s private sector was $31.11 in February. This is $1.82 more than it was a year ago.
However, when yearly inflation was considered, which was 7.9 per cent in February, Oregon employees made less progress. In actuality, they were earning less than they had a year earlier.
“Real wages” decreased by 1.6 per cent in Oregon in February. Paychecks adjusted for inflation declined by 2.6 per cent more quickly nationally.
Home prices increased 18% in Oregon last year as the Pacific Northwest struggles with housing scarcity. This indicates that rents are also rising. In Portland, a two-bedroom apartment will cost you more than twice as much as one in Pittsburgh.
2022 Cost of Living Score: 5 out of 50 points (Top States Grade: F)
Consumer Price Index (May, West Region): UP 8.3%
Average Home Price (Portland): $628,508
Half Gallon of Milk: $2.61
Monthly Energy Bill: $148.23
6. Alaska
According to data released by the Bureau of Labor Statistics, the annual inflation rate for the Anchorage region as of April was 7.5 per cent, closely matching the most recent estimate of 8.2 per cent for the U.S.
Neal Fried, a senior economist with the Alaska Department of Labor and Workforce Development, remarked that it is notable how closely Alaskan economic patterns mirror those of the rest of the country.
The inflation that has occurred since last year differs significantly from what Alaska has seen in previous years.
According to Fried, Alaska experienced deflation in 2020, with prices falling by an average of 1.1 per cent. According to him, it was the first deflationary year in Alaskan history.
The pricey states are not all located on the East Coast. Alaska is infamous for its high cost. A large portion of the food in the state must be imported because there are fewer than one million acres of farmland in the state (for comparison, California has around 43 million). That explains why lettuce in Yuma, Arizona costs half as much as it does in Juneau. Additionally, inflation is escalating the already high expense of living.
2022 Cost of Living Score: 6 out of 50 points (Top States Grade: F)
Consumer Price Index (April, Anchorage Area): UP 7.5%
Average Home Price (Juneau): $599,131
Half Gallon of Milk: $3.36
Monthly Energy Bill: $275.04
7. Maryland
From December 2021 to February 2022, the U.S. Census Bureau gathered information from households around the nation to determine how the epidemic affected people’s lives.
Inflation is hurting people’s life because 38% of Marylanders report having some difficulty covering their household bills, according to VinZant’s analysis of the data.
Twelve per cent of Marylanders describe their circumstances as “extremely challenging.”
In The Old Line State, food costs are soaring, especially outside Washington, DC, rising even more quickly than the national average. In Bethesda, a steak will cost you 40% more than it would in Tupelo, Mississippi. If you were to make a sacrifice, would you choose ground beef instead? That will cost you 50 per cent extra.
2022 Cost of Living Score: 7 out of 50 points (Top States Grade: F)
Consumer Price Index (May, Washington-Arlington-Alexandria Area): UP 7.5%
Average Home Price (Bethesda-Gaithersburg-Frederick): $897,311
Half Gallon of Milk: $2.49
Monthly Energy Bill: $180.30
8. Connecticut
Connecticut is another Northeastern state affected by rising energy prices, continuing in New England. In comparison to Wilmington, Delaware, which is located slightly further along the East Coast, you should anticipate paying twice as much per month for energy in Stamford. Food is also not a picnic. A loaf of bread costs 60% more here than it would in Kalamazoo, Michigan.
Consumers were concerned on Wednesday by a new report claiming that nationwide inflation had reached 9.1%, but Gov. Ned Lamont claims that the figure is retroactive.
According to Lamont, the national inflation rate for June did not take into account the recent decreases in prices for various goods, including gasoline, he told reporters in Hartford.
2022 Cost of Living Score: 8 out of 50 points (Top States Grade: F)
Consumer Price Index (May, New England Division): UP 7.9%
Average Home Price (Stamford): $653,962
Half Gallon of Milk: $3.43
Monthly Energy Bill: $281.85
9. Rhode Island
The U.S. Department of Energy reports that Rhode Island generates the most natural gas-based electricity of any state. That is not a favourable situation with prices up 60 per cent last year and double this year. Many parts of the Northeast suffer from the substantial increase in heating oil prices. In Providence, your annual energy costs are almost double what those in Yakima, Washington, pay.
This summer, inflation and tourism are likely to interact. The inflation equation, which will probably alter travel patterns, includes gas prices.
2022 Cost of Living Score: 9 out of 50 points (Top States Grade: F)
Consumer Price Index (May, New England Division): UP 7.9%
Average Home Price (Providence-Warwick): $436,045
Half Gallon of Milk: $2.62
Monthly Energy Bill: $251.32
10. Vermont
The cost of living in the United States has increased to its highest level in forty years, and consumers are paying higher prices for everything from fuel to food staples like eggs, cheese, and meat.
The price of gas to fill the tank has been staying around $5 per gallon. Additionally, the average cost of a gallon of diesel is over $6. Everyone is affected by the rising prices, but company owners who rely on transportation and fuel-powered vehicles for a living are particularly feeling the pinch.
According to tourism officials, rising gasoline costs would probably cause travellers to choose shorter, one-day vacations rather than lengthy, multiday journeys. According to Nate Formalarie of the Agency of Commerce and Community Development, Vermont is conveniently located within a half-day drive of 80 million people, so “we feel like we’re in a fantastic position there for folks to dial back the travel but still get to a place outside of their home.” The opening of the Canadian border in April is also anticipated to benefit the economy.
According to this year’s Top States for Business survey, the Green Mountain State has the highest quality of life, but it will cost you dearly—or at least far more than it did in a state once a haven from the Northeast’s major cities. This is especially true regarding property prices, which, according to the Federal Housing Finance Agency, increased by 20% last year. People who would typically visit Vermont decided to stay; therefore, demand significantly outstripped supply.
2022 Cost of Living Score: 10 out of 50 points (Top States Grade: F)
Consumer Price Index (May, New England Division): UP 7.9%
Average Home Price (Burlington): $546,522
Half Gallon of Milk: $3.34
Monthly Energy Bill: $233.39
edited and proofread by nikita sharma
