Vermont
- The cost of living is rising at a pace not seen in decades, but inflation varies from state to state.
- Companies and families are more mobile than ever. Many are looking for more affordable locations.
- CNBC’s exclusive America’s Top States for Business study ranks the states based on an index of prices for a broad range of goods and services.
Record inflation around the world is changing lives and forcing some tough decisions. With U.S. consumer prices rising at a pace not seen in 40 years, families are putting off some purchases and changing their shopping habits. The latest government inflation report for June was worse than expected, with the Consumer Price Index rising 9.1% year over year.
With the workforce more mobile than ever, some are even moving to more affordable locations. The states listed here are not among them. They are America's most expensive states to live in, as determined by CNBC's exclusive America's Top States for Business study.
Because Cost of Living is such an important consideration these days, it's an important part of our methodology. We rate the states based on an index of prices for a broad range of goods and services. Also listed below are average prices for selected items last year based on the 2021 Average Cost of Living Index by the Council for Community and Economic Research, C2ER. Prices have only gone higher this year, so we have also included the current regional inflation rate year-over-year from the U.S. Bureau of Labor Statistics.
Get top local stories in Connecticut delivered to you every morning. >Sign up for NBC Connecticut's News Headlines newsletter.
Inflation is hitting these ten states the hardest.
10. Vermont
The Green Mountain State offers the best quality of life according to this year's Top States for Business report, but you will pay dearly for it—or at least a lot more than you once did in a state that's traditionally been a refuge from the big cities of the Northeast. That is especially true when it comes to home prices, which jumped 20 percent last year according to the Federal Housing Finance Agency. Demand far outstripped supply, as people who used to just visit Vermont decided to stay.
Money Report
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
9. Rhode Island
According to the U.S. Department of Energy, Rhode Island gets a greater percentage of its power from natural gas than any other state. With prices up 60% last year and doubling so far this year, that is not a good spot to be in. Heating oil prices are also up sharply, dealing a blow to much of the Northeast. Your annual energy bill in Providence is nearly twice what they are paying in Yakima, Washington.
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
8. Connecticut
Continuing in New England, Connecticut is another Northeastern state hit by rising energy prices. Expect to pay twice the monthly energy bill is Stamford compared to what you would pay just down the East Coast in Wilmington, Delaware. Food is no picnic either. You'll pay 60% more for a loaf of bread than you would in Kalamazoo, Michigan.
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
7. Maryland
Food prices are surging in The Old Line State, particularly in the area outside Washington, DC, where they are rising even faster than the national average. You'll pay 40% more for a steak in Bethesda than you would in Tupelo, Mississippi. Thinking of cutting back and opting for ground beef instead? That will cost you 50% more.
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
6. Alaska
Not all the expensive states are on the East Coast. Alaska is notoriously expensive. With fewer than one million acres of farmland (for perspective, California has about 43 million), much of the food in the state has to come from somewhere else. That helps explain why a head of lettuce in Juneau costs twice what it would in Yuma, Arizona. And inflation is making the bad cost of living situation even worse.
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
5. Oregon
Housing prices jumped 18% in Oregon last year, as the Pacific Northwest grapples with housing shortages. That means rents are soaring, too. A two-bedroom apartment in Portland will set you back more than twice what a similar place would go for 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
4. Massachusetts
Back to New England, where rising food, energy and housing costs have been a one-two-three punch in the Bay State. The Bureau of Labor Statistics says natural gas heating in the Boston area is up more than 40% from a year ago. Dairy products are up more than 15%, so your milk in Boston will cost twice what it would in Detroit.
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
3. California
How bad is California's housing shortage? A 2015 study by the state's Legislative Analyst found that the state has been building about 110,000 fewer units than the amount needed to keep up with demand. And California has been doing this for more than 30 years! That adds up to a shortage of around 3.5 million housing units and counting. And that translates to higher prices. A 2,400 square foot home in San Francisco will cost around $1.4 million if you're lucky. The same house in Phoenix, a metro area about the same size, might go for around $400,000. And don't get us started on the gas prices, the highest in the nation.
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
2. New York
Prices in New York City are in a class by themselves. The price of a home in Manhattan is roughly twice the nearest competitor, and nearly ten times what you would pay in Scranton, Pennsylvania. And it is not just housing. You get no break buying a New York steak in New York. It will cost you 50% more in Brooklyn than it would in Joplin, Missouri. Inflation in New York, while high, is relatively tame compared to the rest of the country. But that may be in part because prices were stratospheric to begin with.
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
1. Hawaii
Paradise is expensive. After you find a place to live—at prices typically double those on the mainland—you still must eat. And that, too, is expensive, even for staples. A 5-pound bag of sugar in Honolulu will cost you double what you would pay in Danville, Illinois. Bananas? Twice as expensive as they are in Pueblo, Colorado. A visit to the doctor's office? It will cost 65% more than in Orlando, Florida, here in America's most expensive state to live in.
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
