Most and Least Expensive U.S. States for Monthly Living Costs in 2024

A recent report highlights the disparity in the cost of living across the United States, revealing which states are the most and least expensive based on average monthly household bills. The report, compiled by a bill pay service, examined ten common household expenses, including utilities, rent, mortgage payments, and insurance costs, to provide a comprehensive view of where Americans are spending the most and least each month.

The 2024 Cost of Bills Index, which forms the basis of this analysis, assigned a national average score of 100. States were then ranked according to whether their average monthly costs were above or below this baseline.

Hawaii topped the list as the most expensive state for the second consecutive year. Residents in the Aloha State spend an average of $3,091 per month on essential bills, which is 45% higher than the national average. Notably, the average monthly mortgage in Hawaii is $2,576, while rent averages $1,983. The high cost of living is compounded by other factors, such as the state’s high energy costs and the impact of recent natural disasters like the 2023 Maui wildfires, which have exacerbated the already challenging housing market.

On the other end of the spectrum, West Virginia was identified as the least expensive state, with residents paying an average of $1,596 per month—25% below the national average. The state’s low cost of living is reflected in its affordable housing, with the average mortgage costing $961 and rent averaging $846 per month. West Virginia’s affordability also influences local wages, which are among the lowest in the nation.

The report’s findings offer a stark contrast between the costliest and most affordable states, underscoring the wide economic disparities across the country. For those seeking to optimize their finances, understanding these differences can be crucial in making informed decisions about where to live and how to manage household expenses.