10 States With the Highest Cost of Living

Some states boast a low cost of living, which may appeal to people looking for a change of pace without breaking the bank. But in other U.S. states, you may end up experiencing sticker shock. Here’s a look at 10 U.S. states with the highest cost of living, according to 2025 data from the Council for Community and Economic Research.

10. Maine

Percentage above national cost-of-living average: 13.4% 

Maine has the 10th-highest cost of living among U.S. states. This is due largely to the Pine Tree State’s high housing costs, as Mainers pay about 33% more for their homes than the average American. Prices are especially high in Kennebunkport: According to Stacker (using data provided by Zillow), homes here average around $1.082 million, making it the most expensive region in Maine to buy property. But despite the state’s high housing prices, other costs are more affordable. Transportation fees are only 4% higher than the national average, whereas groceries are a mere 0.3% pricier.

9. Connecticut

Percentage above national average: 13.5%

Nutmeggers have the ninth-highest cost of living in the U.S. While grocery costs and transportation fees are relatively affordable (ranking just 1.5% and 3.1% higher than the national average), housing prices in Connecticut are over 20% higher than in the rest of the country. Plus, the price of utilities such as electricity and gas is among the highest in the nation — Connecticut residents pay 37.6% more for utilities than average. According to NBC Connecticut, part of the reason for these high costs is the fact that Connecticut’s two major utility companies purchase electricity from out of state rather than produce it themselves, which drives up consumer prices.

8. Vermont

Percentage above national average: 13.7%

Sensing a theme? The Northeast housing market is known for being anything but affordable, and that trend holds true in Vermont, where home prices are more than 30% above the national average. According to Forbes, Woodstock is the most expensive ZIP code in the state, with median home values around $967,805; Stowe isn’t too far behind at $942,691. Utilities in Vermont are 14.5% higher than average, and it costs 6.4% more to fill up your grocery cart in the Green Mountain State.

7. New Jersey

Percentage above national average: 14.8%

New Jersey ranks as the seventh-most-expensive state to live in, but as in other Northeast states, the cost of living in the Garden State is heavily skewed by the skyrocketing cost of housing. Your typical New Jersey home will run you 43.3% more than the national average. According to Realtor.com, the median home price in the town of Deal is $6.26 million, and in Alpine, residents pay $5.39 million for an average home. Aside from these high housing prices, groceries, utilities, transportation, and miscellaneous purchases rank anywhere between 1.4% to 4.2% higher than average.

6. Maryland

Percentage above national average: 14.9%

Maryland has the sixth-highest cost of living in the country, sitting at nearly 15% above the national average. As in many other states on this list, the main culprit for these high prices is housing — the cost of property in Maryland is nearly 34% higher than elsewhere in the country. According to Forbes, the most expensive place to live in Maryland is Chevy Chase Village, where median home values exceed $2 million. Furthermore, utilities cost 14.4% higher than average in Maryland, and groceries will run up a tab that’s just over 5% more than the national average.

5. New York

Percentage above national average: 27.4%

For as expensive as it is to live in New York, it may surprise you to learn that utilities are nearly in line with the national average, ranking just 0.2% higher. Unfortunately, housing costs 74.2% more in New York state than the average American home. It’s no surprise that many of these more expensive neighborhoods are located in New York City: According to the Hudson Valley Post, the Manhattan neighborhood of Hudson Yards boasts a median home sale price of $7.126 million. Outside the city, housing prices are still quite high on Long Island, especially in the Hamptons — houses in the towns of Sagaponack, Water Mill, and Bridgehampton all command several millions of dollars.

4. Alaska

Percentage above national average: 27.3%

Because of Alaska’s remote location, it costs a considerable amount of money to deliver food and other goods to the state. In the end, this increased shipping cost also means higher prices for the consumer. Grocery, utility, and housing prices in Alaska are all about 30% more expensive than the national average. In fact, Alaska’s grocery costs are the second-highest in the entire country, after Hawaii. But it’s not just food — expect to pay more for furniture, vehicles, and other necessary homewares in Alaska, too.

3. California

Percentage above national average: 41.6%

Life in California is significantly pricier than elsewhere in the country. The Golden State has the second-highest transportation cost of any state (38.7% above the national average), and the third-most-expensive utility costs (40.7% higher). Housing prices in California also rank 97.8% higher than average. According to the U.S. News & World Report, this is especially notable in places such as Daly City, Westminster, and Newport Beach, the latter of which ranks as the most expensive place to live in the country.

2. Massachusetts

Percentage above national average: 45.1%

Massachusetts has the highest cost of living of any state in the Lower 48. That said, groceries and transportation cost only 2.7% and 3% more than the national average, respectively. What makes the state of Massachusetts particularly expensive is — wait for it — the sky-high price of housing, with the average price of a home in Massachusetts coming in at 115% higher than the national average. According to the real estate blog Redfin, Edgartown is the state’s most expensive city, where median home sales total $3.305 million. If you’re buying a home in the capital city of Boston, expect to pay an average of $793,819, according to Zillow.

1. Hawaii

Percentage above national average: 82.3%

Despite its reputation as a Pacific paradise, bills in Hawaii are a whopping 82.3% more expensive than the national average. The Aloha State’s remote location makes the cost of goods quite high, as it takes more resources to ship items there, which ends up resulting in a bigger bill for the average consumer. For example, groceries cost 34.6% more, transportation is 43.1% more expensive, and utilities are 107% higher than average. These categories all rank as the highest prices in the nation. The cost of Hawaiian housing is also astronomical, as residents pay 192.1% more for their homes than the American average. 

About the data: To compile this list, we consulted data from the Council for Community and Economic Research, which looked at the average cost of housing, groceries, utilities, transportation, and miscellaneous purchases in all 50 states in the first quarter of 2025. You can view the full report here.