Hawaii tops list of U.S. states with highest cost of living

Hawaii has been identified as the most expensive state in the United States, according to a report by Stacker. The analysis was based on data from The Council for Community & Economic Research, focusing on various living costs. Hannah Jones, a senior economic research analyst at Realtor.com®, explained that Hawaii's high costs are partly due to its remote location and reliance on transported goods.

Jones noted that both Hawaii and Alaska face similar challenges in terms of transportation expenses. She stated, "Both states are not able to produce all the goods they need, which means residents face high prices once transportation is factored in." Additionally, she highlighted Hawaii's high home prices as another factor contributing to its costliness.

The report also pointed out energy costs as a significant expense for Hawaii residents. They pay 26 cents more per kilowatt-hour than the national average due to heavy reliance on petroleum for electricity generation.

Stacker calculated the cost of living index using over 60 different goods and services categories. A score above 100 indicates higher-than-average living costs compared to other states. Hawaii scored an index of 188.4, making it the priciest state.

Following Hawaii, California ranks second with notoriously high housing and utility prices. Washington D.C., despite not being a state, holds third place due to its expensive real estate market.

Tony Mariotti from RubyHome commented on Washington D.C.'s housing market: "For years, people with 'real money,' such as lobbyists and senior officials, bought in neighboring Arlington, VA."

The list continues with Massachusetts, New York, Alaska, Washington State, New Jersey, Maryland, and Vermont rounding out the top ten most expensive places based on living costs.