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Common Price of Residing by State

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You hear about it on a regular basis within the information—Price of dwelling rising! Possibly you consider it each day—Do I earn sufficient to cowl my way of life?

However, how typically have you considered the connection between the price of dwelling and your corporation? 

If it’s crossed your thoughts earlier than, you then’ve most likely additionally questioned in regards to the common price of dwelling by state. Nicely, marvel no extra—your price of dwelling by state information has arrived.

What’s price of dwelling?  

The price of dwelling is the sum of money a person wants to take care of their way of life. Housing, meals, transportation, clothes, taxes, leisure, gear, and training prices are simply a number of the fundamental bills included in the price of dwelling. 

image with illustration of map and house defining what is cost of living

Price of dwelling indexes allow you to examine fundamental bills in numerous areas. There are price of dwelling indexes that examine cities, states, and nations. 

Main cities, like New York Metropolis, have a better price of dwelling than smaller cities, like Albany. To offset these larger prices (e.g., lease), wages are usually larger. 

You need to use price of dwelling data to find out how costly it’s to stay and arrange store in an space. 

Why the price of dwelling issues to your corporation

Price of dwelling issues to employees. Meaning it most likely issues to your staff. However, why ought to your corporation be involved about it? 

Let’s title just a few huge the explanation why the price of dwelling is vital to your enterprise backside line. The price of dwelling impacts:

  • Workplace area bills
  • Enterprise budgets
  • Wage expectations 
  • Product and repair costs 
  • Proprietor’s draw or wage 
  • Elevate determinations (e.g., price of dwelling adjustment)

Don’t care a couple of locality’s price of dwelling? If that’s the case, it’s possible you’ll wrestle to create correct budgets, set cheap worker salaries, and set up a good pricing mannequin that clients wish to purchase from. 

Companies that don’t put within the time to analysis all doable bills could discover themselves dipping into unfavorable money circulate territory.   

To not point out, realizing a metropolis’s price of dwelling may help you determine the place to start out your corporation. Price of labor is a crucial issue that goes into our greatest states to start out a enterprise checklist. 

The 2022 price of dwelling adjustment was 5.9%—the very best enhance in 40 years.

So should you’re scuffling with increase determinations, you’re not alone. Our free downloadable information covers common pay raises, the cost-of-living adjustment, year-over-year inflation, and the disconnect between employer plans and worker increase expectations.

U.S. price of dwelling comparability by state

Price of dwelling in every state knowledge can range relying on what components are analyzed (e.g., housing) and who conducts the examine. 

For our price of dwelling comparability by state, we used the next important data:

The imply wages signify the common wages staff working within the state earn per yr. This knowledge is from Might 2021. You possibly can divide the annual imply wage by 12 to search out the month-to-month wage quantity.

Common month-to-month lease reveals the common total worth of lease within the state (for all unit sizes). This knowledge was compiled by GoBankingRates in 2021. 

The worth of $100 captures how a lot 100 George Washingtons are price within the state. If the worth of a greenback drops under $100, then it doesn’t go as far in that state. This knowledge was compiled in February 2022.  

As you’re trying on the chart, take into account that states with a better imply wage, larger month-to-month lease, and decrease worth of a greenback are inclined to have a better price of dwelling. 

State Annual Imply Wage (All Occupations) Common Month-to-month Lease Worth of $100
Alabama $48,110 $914.08 $114.20
Alaska $63,480 $1,288.42 $94.90
Arizona $55,170 $1,208.50 $103.70
Arkansas $46,500 $778.92 $115.30
California $68,510 $1,777.67 $83.60
Colorado $62,900 $1,404.33 $98.10
Connecticut $66,130 $1,315.42 $95.00
Delaware $59,820 $1,346.08 $100.60
Florida $51,950 $1,329.92 $99.00
Georgia $53,940 $1,083.75 $106.80
Hawaii $59,760 $1,880.08 $80.70
Idaho $47,940 $901.75 $107.80
Illinois $59,650 $1,049.75 $102.60
Indiana $50,440 $889.25 $111.30
Iowa $51,140 $831.17 $111.00
Kansas $49,680 $879.83 $110.80
Kentucky $48,170 $859.25 $112.60
Louisiana $47,740 $869.75 $112.10
Maine $53,230 $1,024.67 $100.70
Maryland $65,900 $1,505.33 $92.30
Massachusetts $72,940 $1,553.75 $89.60
Michigan $55,160 $954.25 $107.70
Minnesota $60,480 $1,054.33 $102.00
Mississippi $42,700 $868.42 $115.60
Missouri $51,390 $909.00 $111.30
Montana $49,340 $919.67 $106.50
Nebraska $52,110 $899.83 $110.50
Nevada $51,080 $1,245.17 $102.60
New Hampshire $59,270 $1,213.50 $93.50
New Jersey $67,120 $1,541.08 $84.00
New Mexico $51,860 $901.33 $108.90
New York $70,460 $1,431.58 $83.70
North Carolina $53,100 $1,008.92 $108.30
North Dakota $53,380 $853.83 $110.70
Ohio $53,170 $865.17 $111.60
Oklahoma $48,360 $847.92 $112.80
Oregon $59,070 $1,226.58 $97.80
Pennsylvania $55,490 $1,001.42 $103.00
Rhode Island $62,120 $1,178.08 $98.70
South Carolina $47,490 $1,004.50 $108.50
South Dakota $46,810 $804.83 $112.20
Tennessee $49,330 $979.92 $110.30
Texas $54,230 $1,090.83 $103.50
Utah $53,400 $1,171.08 $103.50
Vermont $55,450 Not offered $96.90
Virginia $62,330 $1,351.33 $98.70
Washington $68,740 $1,487.58 $91.60
West Virginia $46,490 $786.83 $112.90
Wisconsin $53,120 $943.58 $108.10
Wyoming $52,110 $876.92 $107.20

Price of dwelling per state: Lowest to highest checklist

In case you simply need the inside track on which states have the bottom and highest price of dwelling, we’ve acquired you coated. 

Check out the states ranked by price of dwelling from lowest (most inexpensive) to highest (costliest). This knowledge is from a useful resource offered by U.S. Information that makes use of 2020 knowledge from the Council for Group and Financial Analysis:

  1. Mississippi
  2. Arkansas
  3. Missouri
  4. Michigan
  5. Tennessee
  6. Ohio
  7. Kentucky
  8. Oklahoma
  9. Georgia
  10. Alabama
  11. Indiana
  12. North Carolina
  13. West Virginia
  14. Texas
  15. Louisiana
  16. Kansas
  17. Iowa
  18. South Carolina
  19. Illinois
  20. Wisconsin
  21. Nebraska
  22. Idaho
  23. South Dakota
  24. New Mexico
  25. Florida
  26. Pennsylvania
  27. Arizona
  28. Minnesota
  29. Montana
  30. Virginia
  31. Utah
  32. Wyoming
  33. North Dakota
  34. Delaware
  35. Nevada
  36. Colorado
  37. New York
  38. Washington
  39. Maine
  40. Oregon
  41. Vermont
  42. New Jersey
  43. New Hampshire
  44. Maryland
  45. Rhode Island
  46. Connecticut
  47. Massachusetts
  48. Alaska
  49. Hawaii
  50. California

Price of dwelling calculator 

You is perhaps questioning if there are any instruments you should utilize to readily calculate the price of dwelling in a single state versus one other. And should you are questioning it, you’re in luck—there are a selection of instruments you should utilize.  

Right here’s a listing of internet sites which have a value of dwelling calculator:

You need to use price of dwelling calculators to see how far a greenback will go in two totally different cities. These calculators enable customers to enter data like earnings, present metropolis, and potential metropolis. 

For instance, somebody who makes $50,000 per yr in Cleveland, Ohio would want to make $112,351.78 in New York Metropolis (Manhattan), New York to maintain up with the price of dwelling. 

Remember that the calculators have a restricted collection of cities. 

The Bureau of Labor Statistics additionally has an intensive client worth index (CPI). The CPI particulars common costs for objects akin to meals, shelter, transportation, and clothes. 

When you begin your corporation, you want a dependable approach to handle your accounting books. With Patriot’s accounting software program, you may simply enter balances, obtain and report funds, ship cost reminders, and extra. Begin your free trial now! 

This text has been up to date from its unique publication date of September 24, 2019. 

This isn’t meant as authorized recommendation; for extra data, please click on right here.



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