Let’s face it—it’s expensive to live anywhere in the U.S., and only those at the very top are cruising by. But it’s interesting to look at the data and see which areas of the country may offer the most financial breathing room.
A recent study by GOBankingRates crunched some numbers, breaking down the living wage in each state for a family of four. Per their methodology, they analyzed "annual living expenses" by using the 2023 Consumer Expenditure Survey data "for a married couple with children (oldest child 6-17) from the Bureau of Labor Statistics." The factored costs of living were "housing, groceries, utilities, healthcare, and transportation" (or "necessities"), and they defined "living wage" as "the income required to be able to cover 50% necessities, 30% discretionary/luxury spending, and 20% for savings."
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Some of the results are probably what you’d expect—others less so. The 10 cheapest and 10 most expensive are below, and the full list (with additional metrics) is available at the GoBankingRates site.
1. West Virginia (living wage for a family of four: $82,338)
2. Mississippi ($87,564)
3. Alabama ($87,607)
4. Kansas ($87,944)
5. Arkansas ($88,312)
6. Oklahoma ($90,659)
7. Iowa ($91,667)
8. Missouri ($91,669)
9. Tennessee ($92,179)
10. Kentucky ($93,349)
41. Arizona ($131,102)
42. Oregon ($131,824)
43. Vermont ($131,996)
44. New Jersey ($134,990)
45. Maine ($135,943)
46. Alaska ($136,990)
47. New York ($155,738)
48. California ($188,269)
49. Massachusetts ($199,671)
50. Hawaii ($258,918)
Twenty-six states exceed a six-figure wage. (The others not listed above are South Dakota, Illinois, Wyoming, North Carolina, Delaware, Wisconsin, Idaho, Virginia, Florida, Colorado, Nevada, Rhode Island, New Hampshire, Connecticut, Utah, and Washington.)
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Of course, it’s one thing to analyze some numbers, but it’s also worth considering real-life experience. And if we consult Reddit, where opinions are never in short supply, a lot of people don’t agree with these findings. If you scan the r/coolguides subreddit, for example, you’ll find responses like this:
- "Yeah, I call BS on this. I’m in CA with a family of 3 (me, wife, 4yo daughter), roughly making a combined $250k, and we’re still living with a tight budget"
- "Maine more expensive than Connecticut? That doesn't seem right."
- "This list is just very wrong. I live in the Midwest, and families due just fine making 40-50k. They live within their means."
- "Need to see 'living wage' for NY State with data from NYC completely omitted... My family of four lives pretty comfortably on literally half that amount."
It’s a nuanced subject, not a one-size-fits-all situation. And even if you accept that, say, Hawaii requires the highest living wage for a family of four, there are plenty of other reasons you might want to live there. (I can think of about 15 off the top of my head.)
For example, let’s consult some of WalletHub’s recent reports. In September 2024, they published a breakdown of the "happiest states," analyzing "economic, emotional, physical, and social health" across 30 key metrics, from depression rate to productivity levels. Hawaii hit number one on that list, with residents citing "the highest levels of life satisfaction in the nation and the lowest depression rate." Massachusetts, meanwhile, came in at number 10.
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In August 2024, they assessed the "best states to live in" using 51 indicators of livability, ranging from housing costs to education rate to quality of hospitals. These are further broken down into broader categories of ""affordability," "economy," "education and health," "quality of life," and "safety." Massachusetts was number one, followed by Florida, New Jersey, Utah, and New Hampshire.
Massachusetts also took the top spot in two of the company’s other recent lists: one measuring the quality of school systems (factoring in "performance, funding, safety, class size, and instructor credentials") and another based on family-friendliness (factoring in "median annual family income, housing affordability, health care quality, crime rate, and school quality"). The state also topped Consumer Affairs’ September 2024 list measuring quality of public education.