US cost of living statistics: how has the cost of living in the US changed?

1 min read by Unbiased team Last updated October 4, 2024

Explore how the increase in living costs has impacted Americans and get a deeper insight into how costs vary by state.

Highlights 

  • The cost of living crisis impacts how US citizens spend their disposable income, with 34% of citizens admitting to financial struggles. 

  • Hawaii is one of the most expensive states in the US in terms of living costs. 

  • Massachusetts residents enjoy the highest average salary among all states. 

Cost of living crisis statistics  

Americans' growing frustrations with the US economy have been prevalent over the last few years, with citizens facing significant economic challenges due to inflation increases.  

Statista reported the following cost of living statistics: 

  • A considerable portion of US citizens faced an inflation surge of 9.1% in 2022. 

  • 34% of US consumers admit to struggling financially since September 2022. 

Furthermore, the Bureau of Labor Statistics (BLS) documented a 9% increase in average consumer expenditure since 2022, further emphasizing the growing economic strain on American households.  

The Heritage Foundation also recently found that 60% of Americans live paycheck to paycheck. 

These cost of living crisis statistics only provide a glimpse of the problem but highlight the impact of escalating costs. 

How has the cost of living crisis impacted spending in the US?  

As expected, the cost of living crisis has triggered a change in consumer behavior, and US cost of living statistics highlight these notable shifts.  

Statista's infographic on consumer reactions to the cost of living crisis in the US indicates just how profound the impact is: 

  • 64% of US citizens spend less on non-essentials. 

  • 64% pay more attention to bargains and offers when shopping. 

  • 39% of US citizens no longer eat out, e.g., lunch or dinner. 

  • Only 11% of US citizens stated they've not changed their spending habits, showcasing a resilient minority in the face of economic strain. 

What is the average cost of living by state?  

The average cost of living varies greatly by state, with Hawaii topping the charts as the most expensive.  

Hawaii's average cost of living is an exorbitant $55,491, much higher than California's $53,171 and New York's $49,511. Despite its tropical allure, Hawaiians also have the lowest average disposable income in the US. 

Other interesting stats on the cost of living average by state include the following: 

  • Mississippi's cost of living is the lowest, with the average being as much as $23,155 less than Hawaii's. 

  • New York state citizens enjoy the highest disposable income, averaging $25,427 annually. 

Alternatively, Forbes Advisor provides a detailed breakdown and visual representations of the consumer economic data in each state. 

By exploring the nuances and understanding the disparities in the cost of living across different states, you can plan your finances accordingly. 

What is the average salary by state?  

The national average salary for US citizens in May 2022 was $61,900, which equates to a rate of $29.76.  

Massachusetts leads the pack with the highest average state salary of $76,600, while Mississippi citizens earn the lowest average salary of $45,180 per annum. 

Using data from Forbes, the following table provides a snapshot of average salaries across all 50 states:  

​​​RankStateAnnual Average Wage
1 Massachusetts $76,600
2 New York $74,870
3 California $73,220
4 Washington $72,350
5 New Jersey $70,890
6 Maryland $69,750
7 Connecticut $69,310
8 Colorado $67,870
9 Alaska $66,130
10 Virginia $65,590
11 Rhode Island $64,530
12 Illinois $63,930
13 Minnesota $63,640
14 Oregon $62,680
15 New Hampshire $62,550
16 Delaware $62,260
17 Hawaii $61,420
18 Vermont $59,190
19 Arizona $58,620
20 Pennsylvania $58,470
21 Georgia $58,000
22 Michigan $58,000
23 Utah $57,360
24 Texas $57,300
25 Ohio $56,530
26 North Carolina $56,220
27 Wisconsin $56,120
28 Florida $55,980
29 Maine $55,960
30 North Dakota $55,800
31 Nevada $55,490
32 Nebraska $55,070
33 Missouri $54,520
34 Wyoming $54,440
35 New Mexico $54,440
36 Iowa $53,520
37 Indiana $53,500
38 Kansas $52,850
39 Tennessee $52,820
40 Montana $52,200
41 Kentucky $51,490
42 Idaho $51,350
43 Louisiana $50,940
44 Oklahoma $50,940
45 South Carolina $50,650
46 Alabama $50,620
47 South Dakota $49,890
48 West Virginia $49,170
49 Arkansas $48,570
50 Mississippi $45,180

What is the average cost of healthcare by state? 

 Healthcare costs across the US vary significantly between states, with the most expensive average almost double the most minor average.  

For 2023, Becker's Hospital CFO Report states that Alaska has the highest yearly expenditure per resident at $13,188, while Utah's average is $7,241.  

The table below summarizes each state's average healthcare costs: 

​​​RankStateAnnual healthcare expenses
1 Alaska $13,188
2 New York $13,012
3 Massachusetts $12,754
4 Delaware $12,294
5 Vermont $12,237
6 West Virginia $12,019
7 Connecticut $11,899
8 South Dakota $11,736
9 Maine $11,505
10 New Hampshire $11,359
11 New Jersey $11,266
12 Pennsylvania $11,229
13 Rhode Island $11,049
14 North Dakota $10,741
15 Minnesota $10,510
16 Maryland $10,340
17 Wyoming $10,296
18 Ohio $10,093
19 Nebraska $9,974
20 Indiana $9,914
21 Louisiana $9,796
22 Montana $9,791
23 Kentucky $9,778
24 California $9,665
25 Wisconsin $9,626
26 Oregon $9,625
27 Illinois $9,601
28 Hawaii $9,593
29 Michigan $9,524
30 Florida $9,501
31 Missouri $9,461
32 Iowa $9,265
33 Oklahoma $8,997
34 Washington $8,939
35 Arkansas $8,912
36 Tennessee $8,909
37 Mississippi $8,852
38 Kansas $8,845
39 Virginia $8,815
40 Alabama $8,788
41 North Carolina $8,607
42 New Mexico $8,505
43 South Carolina $8,362
44 Colorado $8,289
45 Georgia $8,282
46 Arizona $8,239
47 Nevada $8,118
48 Texas $8,048
49 Idaho $7,772
50 Utah $7,241

What is the average transportation cost by state?  

A 2023 Forbes report on the cost of living statistics shows Rhode Islanders pay the lowest transportation costs, an average of $4,421 annually.  

This contrasts with Hawaiians, who pay the highest average, $7,458. 

The table below provides a breakdown of the average transportation costs in all states: 

​​​RankStateAverage Transportation Cost
1 Hawaii $7,458
2 California $6,597
3 Alaska $6,480
4 Nevada $6,230
5 Washington $6,225
6 Oregon $6,039
7 Delaware $5,997
8 Idaho $5,832
9 Colorado $5,709
10 Massachusetts $5,699
11 Maryland $5,488
12 Illinois $5,485
13 Florida $5,466
14 Nebraska $5,452
15 North Dakota $5,431
16 Iowa $5,388
17 Utah $5,364
18 West Virginia $5,357
19 Kentucky $5,351
20 Louisiana $5,324
21 Minnesota $5,302
22 Virginia $5,285
23 Montana $5,284
24 Michigan $5,281
25 Wisconsin $5,281
26 Arizona $5,273
27 Ohio $5,233
28 Georgia $5,176
29 Vermont $5,167
30 Indiana $5,126
31 North Carolina $5,121
32 Wyoming $5,082
33 New Hampshire $5,078
34 Texas $5,072
35 Oklahoma $5,055
36 Arkansas $5,050
37 Maine $5,042
38 Alabama $5,039
39 South Carolina $5,017
40 South Dakota $4,981
41 New Mexico $4,970
42 Tennessee $4,929
43 Mississippi $4,853
44 Pennsylvania $4,837
45 Missouri $4,836
46 New York $4,769
47 New Jersey $4,743
48 Kansas $4,729
49 Connecticut $4,586
50 Rhode Island $4,421

Get expert financial advice 

Current cost of living data highlights the financial crisis many in the US are experiencing.  

Most US citizens have changed their spending habits to accommodate the inflation increase in 2022. However, some states are worse off than others, as they have much higher overall living costs and lower disposable income. 

Remember to seek the assistance of a registered financial advisor to help you budget and thrive in an uncertain and increasingly expensive economic environment. 

Let Unbiased match you with a professional who will ensure the cost of living crisis statistics are considered, and your finances can handle future inflation.  

Find a financial advisor

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Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.