Looking for a new city to call home in 2023? It’s important to know which cities may break the bank before you decide to make the big move. Based on current trends, we’ve compiled a list of the four most expensive cities to live in during the upcoming year. But don’t let the costs scare you off just yet! These cities offer unique cultural experiences and job opportunities that could be worth the extra expense. So, if you’re ready to see where your money can take you, keep reading to find out which cities made the cut.
How do we Figure out which State is the Most Expensive?
The cost-of-living index is typically what we would look at if we want to compare the average cost of living, and the index is set at 100. This number represents the average cost of living in America so any higher number means more expensive living costs while lower numbers mean that the area is less expensive to live in.
Following is the List of 4 Most Expensive States to Live In
We’ll be looking at the states that have the highest cost of living and giving you a breakdown of reasons it’s higher than average.
01. Hawaii
Cost of Living Index Score: 185 = 85% Higher than Average
Hawaii might be one of the most popular vacation destinations in the country but that has also made it one of the most expensive places to live. There are far fewer permanent homes in Hawaii than you’d expect so the home cost is higher than most places on the mainland. Since Hawaii is an island, most of the state’s goods need to be brought in via boat or airplane, which drives up the cost of staple amenities.
Hawaii is full of condos and smaller homes that are perfect for vacationing but there are also plenty of large luxury homes all along the coast that offer fantastic views of the water and immediate access to some of the country’s best beaches. Many of the residents are snowbirds that have moved to the islands for a permanent vacation, but there are also plenty of nature lovers who move to be closer to the beautiful waves and surrounded by lush forests.
02. Washington D.C.
Cost of Living Index Score: 152 = 52% Higher than Average
Many places have a higher cost of living based on the average income of its residents and the Nation’s Capitol is well known for having some of the highest wages in the country. Washington D.C. has one of the highest concentrations of luxury homes in the country, so be prepared to see some of the most beautiful homes on the market!
D.C. has become a highly desirable location for both political leaders and tech professionals alike. Given its many attractions, it’s no surprise more people are flocking to the area, making it one of the fastest-growing regions in recent years. With plenty of home options available, you’ll find no shortage of opportunities to settle down in this vibrant city—but with high demand comes higher prices. Don’t be surprised if the cost of homes is higher than expected.
03. New York
Cost of Living Index Score: 134 = 34% Higher than Average
Many people would expect this one to be at the top of the list, but the majority of homes in this state are more moderately priced than you’d expect. New York City does indeed have some of the highest real estate prices in the country, but the smaller cities that are scattered upstate are far less expensive and that draws in plenty of residents that want to live among the colorful explosion of fall leaves. Locals love the easy access to all of the fantastic features that New York City has without the hustle and bustle of the big city, preferring to live in towns like Lake Placid, Ithica, and Woodstock to settle down in.
The high average is largely based on the cost of living in New York City as it’s one of the most expensive places for rent, food, and basic necessities. The prices are much higher than the rest of the country and the homes are much smaller, with the majority being quaint apartment or condo units. If you’re looking to buy a larger home at an affordable price, check out some of the smaller, charming towns in New York State and you won’t be disappointed.
04. Maryland
Cost of Living Index Score: 127 = 27% Higher than Average
Many people have started to seek out waterfront condos so they can live near the water without paying the high price of buying a waterfront house. Even buying an exquisite condo in Maryland is more expensive than it would be to buy a home in a smaller state, but it’s an excellent choice for those that want to retire in a low-maintenance home. Homeowners are considering places like Ocean City so they can be close to the excitement and amenities of the famous boardwalk as well as golf courses and beautiful parks.
Having a higher cost of living compared to other states, Maryland offers a unique and highly desirable quality of life that is well worth the investment. Its proximity to the nation’s capital, bustling cities, historic landmarks, and beautiful natural scenery make it an ideal place to live for both work and play.
05. Hampton
The Hamptons is located on the South Fork of Long Island and are a respite for many New Yorkers in the summertime. Residential real estate prices in the Hamptons rank among the highest in the United States. The Hamptons real estate market was very strong with price rising for both home buyer and sellers.
Endnote: There are so many places all over the country that might surprise you when it comes to their average cost of living. It’s a good idea to do as much research as you can if you are moving to a new state as low home costs don’t always equate to low cost of living. Moving is a big decision, so it’s best to know exactly what to expect, both financially and logistically, before the big day arrives!
FAQs
01. Which is the Most Expensive State to Live In?
Hawaii is the most expensive state to live in. Because in Hawaii is an Island and everything needs to be transported here via water and air route.
However, if you are on tight budget the check the link below:
Luxury Condo Hotspots for $100K Income Earners
