There’s no doubt that living in America has become more expensive over the years, but some states are even worse than others. The American Legislative Exchange Council released its annual Rich States, Poor States report this week, which reveals just how much living costs vary from state to state, depending on where you live.
There has been significant inflation across the world and it is causing a major shift in the lives of many. Families are putting off some purchases and changing their shopping habits as a result of increasing consumer prices in the United States at a pace not seen in 40 years. The consumer price index increased 9.1% year over year in June, which was worse than expected.
As Cost of Living is such an important factor these days, we consider it in our methodology. The states are rated using an index of prices for many different types of goods and services. The ten states that are experiencing the highest inflation rate are listed below.
10. VERMONT

According to a recent study, Vermont is the most expensive state in America when it comes to the cost of living. This is due in part to the high cost of housing and transportation, as well as the inflated prices of food and other necessities. While the state’s overall cost of living is high, it’s important to remember that wages are also relatively high in Vermont. So while you may have to spend a bit more to live here, you’ll also have more money to spend.
Even though Vermont’s has the best quality of life according to this year’s Top States for Business report, 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. In fact, home prices rose 20 percent last year according to the Federal Housing Finance Agency. Supply couldn’t keep up with demand as people who used to just visit Vermont decided to stay.
- The Cost of Living Score in 2022 is 10 out of 50 points (Top states: F)
- The Consumer Price Index (May, New England Division) increased 7.9%
- The average price of a home in Burlington is $546,522
- The cost of half a gallon of milk is $3.34
- Electricity Bill, Monthly: $233.39
9. RHODE ISLAND

A greater proportion of Rhode Island’s electricity is produced by natural gas than in any other state, according to the U.S. Department of Energy. Considering prices have risen 60% in the last year and doubled this year, that’s not a good place to be in. Meanwhile, heating oil prices are sharply up, putting a strain on much of the Northeast. Energy bills in Providence, Rhode Island, are nearly twice as high as those in Yakima, Washington.
So, what’s driving up the cost of living in Rhode Island? Well, part of it has to do with the state’s high taxes. Rhode Island has some of the highest property taxes in the country, as well as a sales tax of 7%. So, if you’re looking to save money, you might want to consider moving out of state.
- The Cost of Living Score in 2022 is 9 out of 50 points (Top states: F)
- The Consumer Price Index (May, New England Division) increased 7.9%
- The average price of a home in Providence-Warwick is $436,045
- The cost of half a gallon of milk is $2.62
- Electricity Bill, Monthly: $251.32
8. CONNECTICUT

Connecticut is another Northeastern state impacted by rising energy costs. Be prepared to pay double the amount in monthly energy bills that you would in Stamford, Connecticut, compared to what you would pay down the East Coast in Wilmington, Delaware. Likewise, food is just as challenging. The price of a loaf of bread in Kalamazoo, Michigan, is 60% higher.
- The Cost of Living Score in 2022 is 8 out of 50 points (Top states: F)
- The Consumer Price Index (May, New England Division) increased 7.9%
- The average price of a home in Stamford is $653,962
- The cost of half a gallon of milk is $3.43
- Electricity Bill, Monthly: $281.85
7. MARYLAND

Prices for food have been on the rise in Maryland, especially in the outskirts of Washington, DC, where they are even more substantial than the national average. A steak in Bethesda will cost 40% more than a steak in Tupelo, Mississippi. Would you like to cut back by opting for ground beef instead? That will cost you 50% more.
- The Cost of Living Score in 2022 is 7 out of 50 points (Top states: F)
- The Consumer Price Index (May, Washington-Arlington-Alexandria Area) increased 7.5%
- The average price of a home in Bethesda-Gaithersburg-Frederick is $897,311
- The cost of half a gallon of milk is $2.49
- Electricity Bill, Monthly: $180.30
6. ALASKA

Expensive states are not only found on the Eastern coast. Expensive, extreme Alaska is infamous for high prices. Since the state has fewer than one million acres of farmland (for comparison, California has about 43 million acres), much of the food is imported. That’s why it is more expensive to buy a head of lettuce in Juneau than in Yuma, Arizona. Now that inflation is driving up the cost of living, the bad situation has been made even worse.
- The Cost of Living Score in 2022 is 6 out of 50 points (Top states: F)
- The Consumer Price Index (April, Anchorage Area) increased 7.5%
- The average price of a home in Juneau is $599,131
- The cost of half a gallon of milk is $3.36
- Electricity Bill, Monthly: $275.04
5. OREGON

In the Pacific Northwest, housing prices rose 18% last year as a result of a housing shortage. As a result of that, rents have been increased. In Portland, a two-bedroom apartment costs more than twice what a similar place costs in Pittsburgh.
- The Cost of Living Score in 2022 is 5 out of 50 points (Top states: F)
- The Consumer Price Index (May, West Region) increased 8.3%
- The average price of a home in Portland is $628,508
- The cost of half a gallon of milk is $2.61
- Electricity Bill, Monthly: $148.23
4. MASSACHUSETTS

In New England, the three costs of food, energy, and housing have been rising at the same time. In the Boston area, natural gas heating is up more than 40% from last year, according to the Bureau of Labor Statistics. A liter of milk in Boston will cost twice as much as one in Detroit due to a 15% increase in dairy products.
- The Cost of Living Score in 2022 is 4 out of 50 points (Top states: F)
- The Consumer Price Index (May, Boston-Cambridge-Newton Area) increased 7.5%
- The average price of a home in Boston is $815,930
- The cost of half a gallon of milk is $3.07
- Electricity Bill, Monthly: $233.39
3. CALIFORNIA

Does California have a housing shortage? According to a 2015 study by the Legislative Analyst, the state has built about 110,000 fewer units than is needed to meet demand. California has been doing this for more than 30 years. This amounts to a housing shortage of about 3.5 million units and counting. This results in higher prices. If you’re lucky, a 2,400 square foot home in San Francisco will cost approximately $1.4 million. Houses in Phoenix cost about $400,000 for about the same price as in Washington D.C., a metro area about the same size. On top of high gas prices, California has the highest average income taxes in the nation.
- The Cost of Living Score in 2022 is 3 out of 50 points (Top states: F)
- The Consumer Price Index (May, West Region) increased 8.3%
- The average price of a home in San Francisco is $1,396,782
- The cost of half a gallon of milk is $2.55
- Electricity Bill, Monthly: $266.44
2. NEW YORK

New York City’s prices are out of this world. Compared to Scranton, Pennsylvania, homes in Manhattan are nearly ten times more expensive than their nearest competitor. It’s not just about housing. When you buy a New York steak in New York, you don’t get a break. In Brooklyn, it will cost you 50% more than in Joplin, Missouri. For example, inflation in New York, while it’s comparatively high, is comparatively tame compared to the rest of the country. However, that may be partly because prices were already so high.
- The Cost of Living Score in 2022 is 2 out of 50 points (Top states: F)
- The Consumer Price Index (New York-Newark-Jersey City) increased 6.3%
- The average price of a home in Manhattan is $2,354,006
- The cost of half a gallon of milk is $2.84
- Electricity Bill, Monthly: $174.72
1. HAWAII

Luxury can be pricey. In addition to finding a place to live-at prices usually double those on the mainland-you must also eat. Heirlooms and staples alike are very expensive. In Honolulu, you will pay twice as much for a 5-pound bag of sugar as you would in Danville, Illinois. It costs two times as much to buy bananas in these parts than in Pueblo, Colorado. The cost of a doctor’s visit here in America’s most expensive state will be 65% more than in Orlando, Florida.
- The Cost of Living Score in 2022 is 1 out of 50 points (Top states: F)
- The Consumer Price Index (May, Honolulu Area) increased 7%
- The average price of a home in Honolulu is $1,399,439
- The cost of half a gallon of milk is $3.92
- Electricity Bill, Monthly: $369.53