The cost of living in the US varies significantly from state to state. With many Americans looking for a locale that offers good housing, schools, food, healthcare, cultural attractions, and a heady economy, the cost of living in many US states remains unaffordable for thousands of middle-class wage earners. Thanks to the rising taxes, expensive housing, inflation, and slow-wave growth. Housing remains a large determining factor of the cost of living for many the US. The average rent for a two-bedroom apartment in the US is $1,192 per month. Other factors affecting the cost of living in the US are average earning and the price of essential goods. Keeping all factors in mind, Hawaii is regarded as the most expensive state to live in the US.
Cost Of Living Index
The cost of living index is the amount of money required to maintain a particular lifestyle by meeting the expenses of basic needs. These basic needs are housing, food, healthcare, and taxes. The cost of living index is often used to compare the cost of living in one location to the other. In addition to other factors such as cultural attractions and robust job markets, the cost of living index is a chief factor in determining where a person wants to live in the US.
The cost of living index is expressed as a percentage. It provides the percentage difference in the cost of living between different locations. The percentage difference is compared to 100%, 100% being the US average cost of living index.
The Most Expensive State To Live In
As mentioned previously, the most expensive state to live in in the US is Hawaii. Hawaii has the highest cost of living index at 192.9%. This means that the cost of living in this state is 92.9% higher than the nation’s average. The housing index in Hawaii is at 318.6%. The grocery cost index is at 169.3% while the utilities cost index is at 172.7%. Hawaii’s groceries are the priciest in the US.
The high cost of living in Hawaii can be attributed to the fact that Hawaii is an island, and therefore almost all goods need to be shipped in. Prices shift in different Hawaiian cities. The most expensive city in Hawaii is Honolulu.
Hawaii is home to the nation’s highest-priced housing. The cost of housing in Hawaii is especially high because of the limited supply and increased demand for housing. With most of Hawaii’s terrain is rugged and prohibited to be built on, only a very small percentage of the total landmass is zoned for housing. In Hawaii, housing cost is $15,000 per year. The median home value is more than $600k.
Hawaiians have the highest average salaries at $50,358 per year. However, taxes in Hawaii, including property taxes are the highest in the nation. Energy taxes are much more expensive, triple he cost in parts of California. The state imposes an 11% income tax and nearly 47% gas tax. It is estimated that in general commodities in Hawaii cost about 30% more than they do on the mainland.