Revealed: the least affordable states to live in (2024)

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Revealed: the least affordable states to live in? ›

Hawaii and California are the LEAST affordable places to live in the U.S as incomes fail to keep up with soaring property prices.

The most expensive state to move to in 2023 is Hawai'i, with an average home price of $636,400.

Housing insecurity was highest in New York, Mississippi, and Louisiana.

1. Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

Hawaii is the state with the highest cost of living in the US, with a cost of living index of 184. The state's high cost of living is mainly due to the high cost of housing, which is among the highest in the nation.

Story at a glance

California currently has the largest deficit of homes at 980,000.

According to a numbers crunched by real estate brokerage RentHop, NYC is currently the least affordable city in the U.S. to live alone -- a median studio will set one back $3,016 or 43.86% of the average monthly household income in the city.

What are the cheapest blue states? ›

Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable.

1. Hawaii. Hawaii is known for its beautiful beaches, warm climate, and breathtaking scenery. However, it is also the most expensive state to buy a house, with a Zillow Home Value Index of $834,582.

Based on migration data from the U.S. Census Bureau, Americans are moving to Austin, Texas; Raleigh, North Carolina; Orlando, Florida; Dallas, Texas; and Phoenix, Arizona. The most moved-to cities are based on percentage increases in population since 2010.

Rather, Alabama is the most affordable state to retire in, according to WalletHub's "2023 Best States to Retire." The analysis compared all 50 states across three key categories: health care, quality of life and affordability.

Washington. Washington state has the highest quality of life in all 50 states. The state has no income tax, a thriving job market, and great international business opportunities.

Hong Kong is the most expensive city to live in the world

Owing to its mammoth population size of 7 million people and finite spice, rent and hotels are extremely expensive. The price of food varies – depending on whether you buy fresh, imported produce versus local, market produce.

Texas is actually one of the more affordable states in the country. Compared to national averages, living expenses here tend to be cheaper — though how much cheaper varies based on where you choose to live in the state.

North Dakota takes the cake as the best state in the U.S. to save money in. With the third lowest debt-to-income ratio in the country for Q3 2022—and the second lowest percentage of income spent on housing costs and rent—North Dakotans are able to keep more money in their pockets.

What US city has lowest cost of living? ›

In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.

While a housing price correction is expected, we aren't in a housing bubble. Demand for homes remains high, and there are fewer home sellers than there were in 2022. And while the market is cooling, experts don't expect an actual housing crash or a housing bubble burst in 2023.

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

A Housing Crash Not Coming, but Reduced Demand for Homes. The housing market has been severely impacted by rising interest rates as reflected in the increase in mortgage rates since 2022. This has led to a reduction in housing affordability, which has resulted in fewer people applying for mortgages.

Leading the nation with the largest drop from the 2022 peak is San Francisco, where home prices have fallen nearly 17%. Other cities with double-digit home-price declines from last year's peaks include Seattle, San Jose, and Phoenix.

California, Illinois, New Jersey, and Delaware are home to the most at-risk housing markets, according to a Special Housing Risk report released by real estate data firm ATTOM. “Some parts of the country remain considerably more exposed to housing market declines than others,” says Rob Barber, CEO of ATTOM.

The imbalance between supply and demand; resulted from of strong economic growth creating hundreds of thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.

The most liberal state in the country is Massachusetts, where the equally progressive city of Boston is located. Next is Hawaii, followed by Rhode Island, California, New York, Vermont, Maryland, New Jersey, Connecticut, and Oregon.

What states are more expensive? ›

Indiana is the cheapest northern state to live in, closely followed by neighboring Iowa. Groceries are among the cheapest in the nation here. However, transportation is only marginally below the national average. In the Hoosier state, median house prices are $206,422.

The state with the most expensive groceries in the US is Hawaii. This might not be surprising, given that Hawaii needs to import most of the foods you'd find in an American supermarket from a pretty long distance.

Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.

Florida residents enjoy the 32nd-lowest cost of living in the United States, per MERIC data gathered in 2022.

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming.

Change in population, 2020 to 2022

Idaho, Montana and Florida saw the most population growth, while New York, Illinois and Louisiana saw the most decline.

The paper is reporting that Floridians and others are migrating to Alabama's Gulf Coast, prompted by high prices in the Sunshine State and its transient lifestyle. That's one of the reasons why Baldwin County grew faster than any other Alabama county from 2010 to 2020.

Ecuador. If you're looking for a country where you can retire outside the US comfortably with $800 per month and experience one of the most ecologically diverse places in the world, then Ecuador might be for you. The go-to city for US retirees in Ecuador is Cuenca, which also happens to be a UNESCO World Heritage site.

Where can I retire on $1,300 a month? ›

Panama: A Home Away from Home

You can retire comfortably on $1,300 per month, and it's one of the best countries for quality of life. What's more, English is widely spoken, and you can use your US money anywhere across the country. The country also offers first-rate hospitals, and many of its doctors are US trained.

Inflation is so high because many consumers are spending more money than they usually do, and because supply chain issues and global fuel shortages have lingered since the pandemic. That high demand and low supply have led to an increase in prices.

While both states have a high cost of living, California is generally cheaper than Hawaii, particularly in terms of housing costs.

Which City Is More Affordable: Los Angeles or New York City? Both NYC and LA are among the most expensive cities in both the U.S. and the world. However, the average cost of living in LA is also 24-27% lower than that of NYC.

The least affordable was Miami, where the median-priced home costs $598,000 and would require a monthly payment of $3,183 to cover mortgage and taxes — more than 85 percent of the local median household income of $44,581 (or $3,715 a month). Los Angeles and New York followed — no surprise given their steep home prices.

To no major surprise, Los Angeles was found to be the least affordable. Two other California cities – Bakersfield and Modesto – found themselves among the top 10 least affordable cities in the U.S. Three Texas cities made the list as well. Here are the top 10 least affordable cities: Los Angeles.

After Hong Kong, New Zealand and Australia were the least affordable countries overall in the study which looked at the U.S., Canada, the UK, Hong Kong, Singapore, Australia, New Zealand and Ireland. This chart shows the places where it's hardest to afford a home (2023).

Hong Kong is the least affordable market, with a median multiple of 18.8. Sydney was the second least affordable at 13.3, Vancouver at 12.0, Honolulu at 11.8, San Jose at 11.5, Los Angeles 11.3, Auckland 10.7, Melbourne at 9.9, Toronto at 9.5 and San Diego at 9.4.

Which city was named the most expensive to live in? ›

New York City, along with Singapore, is the most expensive city to live in, according to the Economist Intelligence Unit. Singapore has once again been ranked as the most expensive city to live in, sharing the top spot with New York City this year, according to the Economist Intelligence Unit (EIU).

California, the largest economy in the United States, has a GDP of $3.5 trillion and a GDP per capita of $89,540. The state's economy is diverse, with significant contributions from industries such as entertainment, technology, agriculture, and manufacturing.

Is it expensive to live in Florida? Though the state has long had a reputation for being an inexpensive place to live, housing costs are high. Rents and sale prices are both well above national averages. However, the overall cost of living in the state is about on par with the national average.