Realtor.com recently released a list of the most expensive states in the U.S., with Hawaii taking the number one spot. The ranking was based on data from Stacker, which used information from The Council for Community and Economic Research to measure the cost of living in each state during the second quarter of 2024. The report found that the most expensive states are mainly located on the West and Northeast coasts.
According to Hannah Jones, a senior economic research analyst at Realtor.com, Hawaii's high cost of living is due to its remote location, resulting in increased costs for goods and services. California followed closely behind Hawaii as the second most expensive state in the U.S. The demand for housing in California exceeds the supply, leading to extremely high home prices. Major economic hubs like San Francisco, Los Angeles, and San Diego contribute to the state's high cost of living.
In addition to Hawaii and California, other states on the list include Washington, D.C., Massachusetts, New York, Alaska, Washington, New Jersey, Maryland, and Vermont. Energy prices in California are also high, with gas prices being among the highest in the nation due to taxes and environmental mandates.
Overall, the ranking of the most expensive states in the U.S. highlights the challenges that residents face in terms of affordability. While factors like housing supply and demand, location, and transportation costs contribute to the high cost of living in these states, it is important for policymakers and residents to address these issues in order to create more affordable living conditions for all.