Wall St. Cheat Sheet
As most of us already know, an equal salary can stretch much further in one place than in another. If you earn at least $75,000 per year, you earn a comfortable salary. At this income level, you are said to have reached the point where you really don't need any more money to thrive. In each state, however, this $75,000 has to be adjusted to account for costs of living differences.
A few states, however, like Minnesota, Pennsylvania, Colorado, Nevada, Florida, and Wisconsin are right around the benchmark. That is, even when adjusting for cost of living, these states will produce a monetary amount that is relatively similar to the nationwide reference point.
Recently, we shared the most inexpensive states to live in the U.S. Now, let's check out the most expensive states. Do you live in an expensive state? How much does it cost to live, eat, and go out on the town in these higher priced locations? We're also going to take it one step further and answer the question: how much of an annual salary do you need in each of these states to live comfortably at that $75K level?
These states are ranked in order based on their overall cost of living. All cost of living index data comes from the Missouri Economic Research and Information Center (MERIC) first-quarter report, and pricing data comes from Zillow, Numbeo.com, and other resources.
7. Connecticut
Cost of Living Index: 125.2
Grocery Index: 124
Housing Index: 136.1
Utilities Index: 116.3
Transportation Index: 119
Health Index: 120.4
Misc.: 122.8
In Connecticut, notice how every index category is above the benchmark index of 100, and food, healthcare and miscellaneous costs — like entertainment and clothing — are particularly high. The median home value in the Northeastern state is $240,000 and homes generally list for a median price of around $275,000 (or $162 per square foot). If you rent, you're also looking at a hefty housing payment of around $1,500 per month, as per the Zillow reported median.
In Hartford, utilities in a small apartment average around $210, and to go out for dinner (at a mid-range restaurant) and a movie with a friend, you're probably going to pay around $75.
Assuming $75,000 is the ideal income, you'd need to earn close to $94,000 to achieve the same standard of living that $75k would offer in a state closer to the benchmark, like Florida.
6. California
Cost of Living Index: 127.1
Grocery Index: 113.6
Housing Index: 176.7
Utilities Index: 113.6
Transportation Index: 111.1
Health Index: 109.7
Misc.: 106.2
The median home value in the sunny state is $429,000, and homes generally list for a median price of $425,000 ($256 per square foot). As a renter, you're looking at a median rent of almost $1,900 and housing and rent prices in some California cities — like San Francisco — are among the highest in the nation.
Dinner and a movie for you and a guest may very well come with a $100 price tag. Basic food items, like milk, bread, and eggs, are going to cost you a pretty penny, as well. In San Fran, you may pay close to 4 bucks for a regular old loaf of bread.
Utilities, however, are not as high as they are in some of the other expensive states. In San Fran, you may just be able to keep your lights and water on in a small apartment for less than $100 per month. All in all, living in California is going to cost you. If you want to achieve that $75K standard of living, you'd need a salary of around $95,000 in California as of late.
5. New Jersey
Cost of Living Index: 127.6
Grocery Index: 108.2
Housing Index: 167.7
Utilities Index: 117.3
Transportation Index: 112.4
Health Index: 104.3
Misc.: 116.1
Overall, living costs in New Jersey are comparable to California. You'd need that same $95K salary to feel completely comfortable. Home prices in Jersey are lower than in California, though, with the median value of Jersey homes at $278,600. If you're looking for a home to purchase in the Northern state, the median list price is just under $300K, or $174 per square foot.
Rent is exceptionally high, with the median monthly rent at $1,800. If you rent in an area like Princeton, you may have to pay $275 or so for utilities in a tiny apartment. If you go out for dinner and a movie, expect to pay around $80 to $85 in Princeton.
4. Alaska
Cost of Living Index: 131.8
Grocery Index: 128.4
Housing Index: 147
Utilities Index: 161.7
Transportation Index: 115
Health Index: 144.8
Misc.: 116.8
When we think of expensive states, New York and California are generally the first ones to come to mind. We often forget about the high cost of living in Alaska. In Anchorage, you're going to pay around $70 (or more) for Internet (6 Mbps, Unlimited Data, Cable/ADSL), which is considerably high compared to many other locations.
The median list price of homes in the large state are $252,000. Homes cost much more in Juneau (where the median is around $315,000) than in Kenai (where the median sits at around $200,000). Food is also priced high, and of you go out to dinner and a movie with a friend, you're looking at a bill of $85 or so.
3. New York
Cost of Living Index: 132.2
Grocery Index: 110.6
Housing Index: 193.3
Utilities Index: 106.8
Transportation Index: 112.9
Health Index: 103.0
Misc.: 112.1
New York is known for its higher cost of living, with median home prices sitting at around $525,000 ($507 per square foot). The real estate market in the Big Apple is hot, as statewide housing values have risen 8.5% over the past year, according to Zillow. As a renter, you could easily pay upwards of 4 grand for a small apartment in New York City, and utilities in that apartment will run you about $175 per month.
You could shell out over $400 if you and a guest decide to go to dinner and to the theater one night. If you want to go out to a downtown club and have a drink, you may end up paying $13 for a co*cktail. But, if you're more of a neighborhood pub kind of person, a beer should cost around $7. Overall, to be able to live comfortably at the $75K level, you'd need around $100,000 per year.
2. Washington, D.C.
Cost of Living Index: 139.6
Grocery Index: 111.7
Housing Index: 249.4
Utilities Index: 97
Transportation Index: 103.7
Health Index: 95.9
Misc.: 97.4
Although some costs like healthcare and utilities are lower than the benchmark, housing prices in DC are incredibly high. According to Zillow, "the median price of homes currently listed in Washington is $449,000 while the median price of homes that sold is $527,150." The housing market in the nation's capital is red hot, as home values have increased by 10.4% over the past year.
If you're planning on renting, the median rent price is just under $2,000 — more than double the median in some other states like Wisconsin. Utilities in a small apartment should cost around $160 per month, which is pretty reasonable. However, dinner and a movie for you and a guest may come with a higher price — probably around 100 bucks. To thrive in DC at that $75,000 level, you'd need an annual salary of right around $105,000.
1. Hawaii
Cost of Living Index: 162.9
Grocery Index: 159.7
Housing Index: 213.1
Utilities Index: 227.8
Transportation Index: 125.3
Health Index: 113.3
Misc.: 126.6
Paradise is expensive. To live comfortably in Hawaii, you'd need a salary of over $122,000, as of late. Dinner and a movie in Honolulu will cost you around $75, which is a little high. Your grocery bill may be on the higher end in this area as well, with the price of bread and eggs averaging over $4 each.
The median home value in Hawaii is $518,800 and the median list price is a little higher at $525,000 ($420 per square foot). If you decide to rent, you're looking payment of just under $2,000 per month, and that's if you pay the median price. To keep the utilities running in a small apartment in Honolulu, you're facing a cost of around $285 per month.
Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY .
