You may feel like your paycheck doesn’t go as far as it used to, and you’re not alone. Grocery costs, rent, and energy bills seem to be eating away at your income. While inflation is increasing everywhere, some places are heating up more than others. In fact, according to the latest data from the U.S. Bureau of Labor Statistics, consumer prices have risen 2.4% year-over-year as of May 2025.
However, in some places, it’s much higher than that. We’re talking astronomical housing prices, electricity bills that’ll make you cringe, and grocery costs that’ll make you do a double-take. Plus, yes, in many of these states, six figures are becoming the new normal to keep your head above water.
If you’ve been side-eyeing your bills recently or wondering where all your money is going, you’re not alone. Here are the 13 U.S. states where the cost of living is skyrocketing more than anywhere else. I promise you’ll be surprised by some of these.
Hawaii
Hawaii has long been known as the most expensive state in the U.S. The 2025 Cost of Living Index puts it at a whopping 186.9, which is nearly double the national average.
Residents now need an annual salary of $124,467 just to live comfortably, which is a staggering 9.48% jump from last year. The median home price is now more than $835,000, largely due to limited land availability and the state’s reliance on imports.
“We can attribute this to the ongoing impacts of the pandemic and lack of interest in international travel to Hawaii, since our tourism is a key component of the economy,” “Due to the nation’s high housing and transportation costs, Hawaii’s housing cost per capita is higher than the national average, but its wage per capital is low.
Tip for residents: Invest in energy-efficient appliances and solar panels to offset Hawaii’s notoriously high utility bills.
Massachusetts
Massachusetts’ booming tech and biotech sectors have fueled the economy, but they’ve also sent housing costs soaring. The 2025 Cost of Living Index puts it second to Hawaii, with an index of 145.9, which means it’s 46% higher than the national average.
“While the Massachusetts economy has shown solid growth since the pandemic, much of it has been job gains in the technology and biotechnology sectors, which can be associated with higher housing costs. The Boston metro area’s median rent has climbed to $3,300 by early 2025, putting it in the top five most expensive cities in the U.S.
California
California is famous for its sun-soaked beaches and dreamy living, but not its affordable living. The median home price now sits at $764,500, and average monthly rent hovers at $2,950. Add in utilities, which are 13% higher than the national average, and it’s no surprise that the state’s Cost of Living Index is 144.8.
“Affordability is California’s Achilles’ heel,” said Jordan Levine, chief economist at the California Association of Realtors. “Even though population growth has slowed down, housing and utility costs have continued to rise, and it’s becoming more difficult for middle-income families to get by.”Consider moving to more affordable inland areas like Fresno or Bakersfield if you want to live the California dream.
New Jersey
New Jersey is a prime example of how dense populations and urban spillover can drive up costs. According to a 2025 SmartAsset report, a family of four in New Jersey now requires an annual salary of $282,714 to cover rising housing, taxes, and other expenses, representing a 12.55% increase from last year.
“It is difficult for residents to deal with high property taxes in New Jersey. “Limited growth and high population density are making affordability a challenge. Residents have faced higher property taxes in the face of increasing property values.”
Tip for residents: If you’re a renter on a budget in New Jersey, look for affordable neighborhoods outside of the cities
Vermont
Quiet Vermont suburban vibes can be a blessing and a curse. The Cost of Living Index in Vermont reached 114.4, indicating that a family of four needs to earn between $116,000 and $130,000 per year to cover their expenses.
Home prices climbed 2.4% year-over-year to $439,500, according to Redfin’s April 2025 housing data. “Vermont’s small towns are getting a high premium, particularly with remote workers staying in the state permanently.”
New York
The concrete jungle comes with a hefty price tag. New York City has the nation’s highest median rent at $4,050, while basic groceries, utilities, and transit costs add to the bill. The state’s Cost of Living Index is 123.3. Rising interest rates and low inventory have been driving prices upward.
In fact, food prices have been surging, with the average cost of a gallon of milk in New York City at $5.14, according to Rentcafe’s 2025 cost-of-living data. Consider moving upstate if you don’t want to spend your entire paycheck in New York.
Maryland
With a cost-of-living index of 115.3, Maryland isn’t just expensive, it’s getting too costly for high earners. Home prices in the D.C. metro area are through the roof, especially in Montgomery and Howard counties. The median home price is now a staggering $431,000, according to the Maryland Association of Realtors.
Baltimore isn’t far behind, with rental inflation making once-affordable neighborhoods feel out of reach. Electricity prices in Maryland have also increased.
Average electricity prices in Maryland were 14.97 cents per kilowatt-hour in March 2024 and 16.16 cents per kilowatt-hour in March 2025, which represents an increase of approximately 7.95% year-over-year, according to the latest data from the U.S. Energy Information Administration (EIA). For Maryland residents, this means dealing with higher rents and utility bills every day.
Connecticut
A quiet suburban vibe used to define Connecticut, but now it’s defined by expensive bills. The cost of living index has soared to 112.3, and this state is one to watch for its sky-high housing and utilities.
According to iPropertyManagement’s 2025 data, Connecticut home prices jumped 10.1% over the past year, and the median rent is closer to $2,100. Utility costs followed suit, with Eversource rates 22% above the national average. It’s no surprise that the state’s Cost of Living Index is 112.3.
“Connecticut’s quiet suburbs come with high taxes and expensive utilities. Much of this rise is attributed to the New York City exodus during the pandemic, which boosted suburban demand. If you live in Connecticut, consider replacing old insulation to help you cut down on those hefty bills.
Rhode Island
In terms of its expense, Rhode Island is a small state that packs a punch. With a cost-of-living index of 112.2, it’s hard to keep up with the soaring costs of everything. Rents have increased by 13.6% since 2023, with a typical two-bedroom apartment in Rhode Island costing around $2,223.
According to Energy Sage’s 2025 Report, the average monthly electric bill in Rhode Island is $276, which is 36% higher than the national average of $2,434 annually. Due to its limited size and coveted shoreline, it is no wonder that costs remain so high.
For Rhode Islanders seeking to reduce costs, one recommendation is to invest in solar panels to help mitigate their ever-increasing utility bills in the long run.
Oregon
People are flocking to Oregon, but the rising prices aren’t always good news. With a cost-of-living index of 112.0, the state is proving its popularity comes at a cost.
The Portland metro area’s median home price now sits at $550,000, while the average rent has climbed to $2,275 a month. Gas prices are also rising, which can be a problem for commuters. They’re now 27% higher than the national average.
Still-high housing costs and a limited number of homes for sale are tempering the housing market recovery. What’s noteworthy is that Portland ranks 39th among U.S. cities for the average rent on a one-bedroom apartment, with prices hovering just under $1,500, according to Zumper’s 2025 national rent report.
Montana
The affordable haven of Montana was once synonymous with the great outdoors and wide-open spaces, but it’s changing. The salaries required here are now jaw-dropping, with a single resident needing $92,851 and a family needing $234,957, based on the most recent labor market data.
Since 2019, annual cost-of-living expenses for singles have risen by 9.57% and for families by 11.14%, according to SmartAsset’s 2025 study.
“Montana has seen above-average housing price growth,” says Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana. Residents should monitor their expenses, especially as rent and utilities in this once-affordable paradise continue to rise.
Arizona
The cost of living in Arizona has increased. The cost of living index for Arizona is 111.5, which is above the national average of 100. Housing costs have increased significantly, with Phoenix home prices now being 2.5 times the price in 1975 and a median home price of $450,000 in 2025, according to Redfin May 2025 data.
High population growth and a shortage of housing inventory have driven up home prices, while rising energy bills during the hot summer months have made it difficult for many people to afford to live there.
Florida
Demand for homes has skyrocketed in recent years, particularly in Florida’s prime markets such as Miami and Tampa. Median home prices in Miami reached $590,000 this year, a 15% increase over last year, according to Redfin housing data.
On top of that, property and flood insurance rates are skyrocketing, making Floridians pay the most expensive insurance rates in the country.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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