This Is The Most Expensive State in the U.S. And No, It’s Not New York or California
This article originally appeared on Fodor’s Travel
The cost of living in the U.S. is skyrocketing. Although inflation has seen a two-year decline, everything is still expensive. Americans are paying more rent, and grocery bills and utility costs are adding to the burden. Meeting necessities has become a pain point for Americans; in fact, in New York City, half of the working-age population isn’t making enough to cover basics.
Contrary to popular belief, it’s not New York or California that’s topping the list of most expensive states in the U.S. Bill payment service Doxo released the 2023 State by State Bill Pay Market report, which offers insights into how much Americans are paying for bills every month and the state that’s most stressed due to household bills is: Hawaii.
The company has also reported that inflation is impacting the ability of 73% of consumers to pay their bills. “Eighty-six percent of consumers said they are worried about the impact that inflation will have on their financial health in the future, with 72% saying it would take six months or more until their household’s financial health improves.”
Hawaii Is More Expensive Than Any Other State
Annual household spending in the country is $3.22 trillion on 10 bill categories, including rent, mortgage, utilities, auto loans, mobile phones, internet, and insurance. But in Hawaii, all these costs add up to make it the most expensive state to live in.
Hawaiians spend $3,070 per month on bills, which is 43% of their household income, and 50% more than the national average. The average mortgage in the state is $2,247 and rent is $1,856. Kailua, Oahu, is its most expensive city.
California, which ranks second on this report, spends 40% of its household income on bills–$2,838 per month. Living in San Ramon can make you shell out as much as $4,390 per month on household bills.
In the third spot is New Jersey with $2,727. Its neighbor New York is seventh on this list with people paying $2,495 on bills every month. The average mortgage is $2,145 and rent is $1,507 in the state; Rye and Long Island City take the top spots for the most expensive cities in New York.
The states feeling the financial strain in the U.S. are Massachusetts, Maryland, Connecticut, Washington, Colorado, and Alaska—with people swiping their cards for more than $2,000 on essentials every month.
Bang for Your Buck In West Virginia
On the other side is West Virginia, the least expensive state in the U.S. Here, the same bills add up to $1,530 per month. West Virginians pay half of what Hawaiians have to cough up, and it’s also 25% less than the national average. Housing prices are more affordable in the state as well with mortgages at $879 and rent at $785 per month. Its costliest city is Charles Town.
Mississippi, Arkansas, Oklahoma, and Kentucky take the rest of the spots in the top five. If you’re living in any of the 10 least expensive states in the U.S., you need more than $1,700 to cover monthly bills.