The source, MERIC, derives the cost of living index for each state by averaging the indices of participating cities and metropolitan areas in that state, as reported to the C2ER.
The composite index is based on six components: housing, utilities, grocery items, transportation, health, and miscellaneous goods and services. The national average for all 273 participating areas is given a benchmark of 100.
West Virginia and Kansas had the lowest cost of living across all U.S. states, with composite costs being half of those found in Hawaii. This was according to a composite index that compares prices for various goods and services on a state-by-state basis. In Oklahoma, the cost of living index amounted to **** — well below the national benchmark of 100. Expensive places to live included Hawaii, Massachusetts, and California.
Housing costs in the U.S.Â
Housing is usually the highest expense in a household’s budget. In 2024, the average house sold for approximately ** U.S. dollars, but house prices in the Northeast and West regions were significantly higher. Conversely, the South had some of the least expensive housing. In West Virginia, and Mississippi, the median price of the typical single-family home was less than ** U.S. dollars. That makes living expenses in these states significantly lower than in states such as Hawaii and California, where housing is much pricier.Â
What other expenses affect the cost of living?Â
Utility costs such as electricity, natural gas, water, and internet also influence the cost of living. In Alaska, Hawaii, and Connecticut, the average monthly utility cost exceeded *** U.S. dollars. That was because of the significantly higher prices for electricity and natural gas in these states. Â
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MERIC. (March 19, 2026). Composite cost of living index in the United States in 2025, by state [Graph]. In ÌÇÐÄÆÆ½â°æ. Retrieved July 31, 2026, from /statistics/1240947/cost-of-living-index-usa-by-state/
MERIC. "Composite cost of living index in the United States in 2025, by state." Chart. March 19, 2026. ÌÇÐÄÆÆ½â°æ. Accessed July 31, 2026. /statistics/1240947/cost-of-living-index-usa-by-state/
MERIC. (2026). Composite cost of living index in the United States in 2025, by state. ÌÇÐÄÆÆ½â°æ. ÌÇÐÄÆÆ½â°æ Inc.. Accessed: July 31, 2026. /statistics/1240947/cost-of-living-index-usa-by-state/
MERIC. "Composite Cost of Living Index in The United States in 2025, by State." ÌÇÐÄÆÆ½â°æ, ÌÇÐÄÆÆ½â°æ Inc., 19 Mar 2026, /statistics/1240947/cost-of-living-index-usa-by-state/
MERIC, Composite cost of living index in the United States in 2025, by state ÌÇÐÄÆÆ½â°æ, /statistics/1240947/cost-of-living-index-usa-by-state/ (last visited July 31, 2026)
Composite cost of living index in the United States in 2025, by state [Graph], MERIC, March 19, 2026. [Online]. Available: /statistics/1240947/cost-of-living-index-usa-by-state/