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Edited by: TJVNews.com
As inflation continues to ripple through the U.S. economy, the impact on household budgets has become a significant concern for millions of Americans. According to a recently published report in the Asbury Park Press, the increasing cost of living is pushing many families to reconsider their financial strategies, with some even contemplating relocation to more economically viable states. A recent analysis by GoBankingRates.com sheds light on this issue, revealing a stark contrast in living expenses across the United States.
The GoBankingRates.com report titled “Here’s the Cost of Living in Every State” utilized data from the Missouri Economic Research and Information Center’s 2023 annual cost of living indexes and the Bureau of Labor Statistics 2023 Consumer Expenditure Survey. The APP report indicated that the report examined the cost of living index across six key categories, including housing, utilities, and groceries, to determine the total annual expenditures for residents in each state.
The findings highlight a significant disparity in living costs across the nation, with Hawaii emerging as the most expensive state, where residents face annual expenditures exceeding $130,000. On the opposite end of the spectrum, Oklahoma was identified as the least expensive state, with close to $63,000 in annual expenditures.
The financial squeeze is felt acutely in states such as New York, where the cost of living remains among the highest in the country. According to the report, New York ranks as the fourth most expensive state, with total annual expenditures averaging $91,865. This marks a slight improvement from its previous position as the most expensive state in the contiguous U.S. back in 2017, a change largely attributed to the state’s housing costs, the APP reported. Housing in New York is now 76% higher than the national average, which continues to be a primary driver of the state’s high cost of living.
Neighboring states such as New Jersey, Connecticut, Delaware, and Pennsylvania also rank within the top 25 most expensive states. Indicated in the APP report was that New Jersey holds the 11th spot, with high living costs driven by similar factors, including steep housing prices and significant utility expenses. Connecticut, Delaware, and Pennsylvania rank at 12th, 20th, and 24th respectively.
New Jersey stands out as one of the more expensive states to live in, with total annual expenditures averaging $83,109. The state’s cost of living is 13.9% higher than the national average, a significant disparity driven primarily by housing costs, the APP report confirmed. Housing in New Jersey is 35.8% more expensive than the national average, making it the most substantial contributor to the overall cost burden faced by its residents.
While housing is the primary driver of high living costs in New Jersey, other essential categories also exceed the national average. Groceries, transportation, and miscellaneous expenses all add to the financial pressure. However, healthcare is a notable exception, costing slightly less than the national average—by less than a percentage point—providing a small but important area of relief for New Jerseyans.
The state’s proximity to major metropolitan areas, such as New York City and Philadelphia, contributes to the high demand for housing, driving up prices. Additionally, New Jersey’s reputation for quality education and its robust economy make it a desirable place to live, despite the financial challenges.
