Cost of living index ranks Hawaii the most expensive state overall

Key Points:

• A new cost-of-living index from the Missouri Economic Research and Information Center reveals significant variation in living expenses across U.S. states, with housing costs being the primary factor driving affordability differences.
• Hawaii ranks as the most expensive state due to extremely high housing costs, followed by Massachusetts, Alaska, California, and New York, all facing above-average prices for everyday expenses.
• Oklahoma is identified as the most affordable state, with Alabama, Mississippi, Kansas, and West Virginia also ranking low in living costs, benefiting from cheaper housing and lower transportation and utility expenses.
• The cost-of-living disparities correlate with recent migration trends, as high-cost states like New York and California have seen substantial taxpayer and income losses to more affordable regions.
• These findings underscore how affordability influences not only household budgets but also broader demographic shifts and political concerns ahead of the 2026 midterm elections.