The most expensive states to live in 2025 are ranked primarily based on their cost of living index, with housing costs being a major factor. The top states are:
- Hawaii - With a cost of living index of 182.1, housing is extremely expensive, and other costs like utilities and transportation are significantly above the national average. Hawaii's median income is high but justifies the cost due to its remote location and shipping needs.
- Massachusetts - Cost of living index around 145.9, with housing more than twice the national average and high utility costs. It has the second highest median income.
- California - Cost of living index about 139.1, driven by high housing costs and a significant housing shortage.
- New York - Cost of living index approximately 126.4, with expensive housing, transportation, utilities, and healthcare.
- Alaska - Also among the top expensive states due to remoteness and high costs of goods and fuel.
- Maryland, Washington, New Jersey, Vermont, New Hampshire, and Connecticut also rank within the top expensive states with indexes typically above 110.
Hawaii stands out as the most expensive by a notable margin due to its geographic isolation and extremely high housing index. Massachusetts, California, and New York also show high costs driven by urban housing markets and living expenses.
