Buzz
With housing costs soaring nationwide, an increasing number of renters and first-time buyers are leaving major urban centers for more affordable areas. Factors like rising interest rates, increased rents, inflation, and stagnant wages are driving many Millennials and Gen Z individuals to focus on affordability as they map out their future living and career plans.
Sadly, the high cost of living isn't limited to cities like New York or Los Angeles. While most areas seem costly nowadays, certain states remain more budget-friendly than others. Discover which U.S. states are the most and least affordable by exploring the list below.
The Most and Least Costly States to Live In
SmartAsset recently determined the income necessary for a single adult employed full-time to live comfortably in every state. To define “comfortably,” the financial technology firm applied the 50/30/20 rule of budgeting. This principle suggests that 50 percent of one’s income should cover essentials like housing, groceries, and utilities, 30 percent should go toward discretionary expenses such as dining and entertainment, and the remaining 20 percent should be saved. Essentially, “living comfortably” means you’re not just scraping by—you can manage all your costs, save money, and occasionally treat yourself.
Unsurprisingly, states like California, Hawaii, and New York emerged as some of the priciest places to live. Topping the list was Massachusetts, where a staggering salary of $116,022 is needed for a comfortable lifestyle. This translates to an hourly wage of $55.78 to cover rent, food, and other expenses while still saving a portion of your income.
On the flip side, West Virginia stands out as the most budget-friendly state, requiring an average salary of just $78,790, or about $37.88 per hour. However, the Bureau of Labor Statistics reports that even this figure is out of reach for many, as the average salary for single, full-time workers in the U.S. hovers around $60,000.
To see how your state measures up in terms of livability, take a look at the complete ranking below.
Income Needed to Live Comfortably Across All 50 States
- Massachusetts // $116,022
- Hawaii // $113,693
- California // $113,651
- New York // $111,738
- Washington // $106,496
- Colorado // $103,293
- New Jersey // $103,002
- Maryland // $102,918
- Oregon // $101,088
- Rhode Island // $100,838
- Connecticut // $100,381
- Virginia // $99,965
- New Hampshire // $98,093
- Arizona // $97,344
- Georgia // $96,886
- Alaska // $96,762
- Vermont // $95,763
- Illinois // $95,098
- Delaware // $94,141
- Utah // $93,683
- Nevada // $93,434
- Florida // $93,309
- Maine // $91,686
- Pennsylvania // $91,312
- North Carolina // $89,690
- Minnesota // $89,232
- Idaho // $88,733
- South Carolina // $88,317
- Wyoming // $87,651
- Texas // $87,027
- Tennessee // $86,403
- Indiana // $85,030
- Montana // $84,739
- Kansas // $84,656
- Michigan // $84,365
- Wisconsin // $84,115
- Missouri // $84,032
- Alabama // $83,824
- Nebraska // $83,699
- New Mexico // $83,616
- Iowa // $83,366
- Mississippi // $82,742
- Louisiana // $82,451
- South Dakota // $81,453
- Ohio // $80,704
- Kentucky // $80,704
- North Dakota // $80,538
- Oklahoma // $80,413
- Arkansas // $79,456
- West Virginia // $78,790
