ECONOMY
Changes in the cost of living for families in every state in 2024
Since January, the cost of living has risen in nearly all states. A look at how these increases vary regionally.
Although prices have continued to increase this year, the pace at which they are rising has slowed. While there are general trends in prices that can be seen nationally, there are regional differences in the cost of living. The Bureau of Labor Statistics does not calculate the Consumer Price Index for each state, but they do track prices in regions:
- Northeast
- New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
- Middle Atlantic: New Jersey, New York, Pennsylvania
- Midwest
- East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin
- West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota
- South
- South Atlantic: Delaware, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia
- East South Central: Alabama, Kentucky, Mississippi, and Tennessee
- West South Central: Arkansas, Louisiana, Oklahoma, and Texas
- West
- Moutain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming
- Pacific: Alaska, California, Hawaii, Oregon, and Washington
Though we will not be able to see exactly how prices have changed in each state, we will be able to see how they shifted regionally.
Four broad commodity categories—groceries, shelter, and fuel and utilities—are used to examine changes in the cost of living.
When looking at all goods and services, the Midwest (+2.64 percent) has seen prices rise by the highest factor, with states in the West North Central seeing prices increase 2.75 percent.
- West North Central +2.75% - Midwest
- East North Central +2.60% - Midwest
- East South Central +2.59% - South
- Middle Atlantic +2.38 - Northeast
- New England +2.00% - Northeast
- South Atlantic +1.85% - South
- West South Central +1.33% - South
- Pacific +1.72% - West
- Mountain +1.16% - West
In addition to seeing prices rise at different rates, these regions also began the year with prices in different places, with some areas having a higher cost of living than others. Though the Midwest has seen prices increase nearly three percent, the states in this region started the year with the lowest prices, and still, even with prices growing as they have, consumers still see the lowest average prices as of July.
How much have grocery prices increased in the US?
Moving on to groceries. Though this category fueled inflation in 2022 and parts of 2023, price increases have stayed under 1.5 percent in all regions, with prices falling since January in two:
- New England -0.95% - Northeast
- Mountain -0.15% - West
In the Midwest, states in the West North Central region have seen prices rise 1.17 percent, while consumers in the East North Central region have seen prices rise only 0.28 percent.
- South Atlantic +1.29% - South
- West North Central +1.17% - Midwest
- East South Central +1.07% - South
- West South Central +0.51% - South
- Pacific +0.49% - West
- Middle Atlantic +0.28% - Northeast
- East North Central +0.28% - Midwest
- Mountain -0.15% - West
- New England -0.95% - Northeast
Food prices are the highest in the West, with states in the Mountain region paying the highest average prices for groceries in the country, followed closely by residents of the Pacific states.
How much has the price of housing changed this year?
Shelter is one of the commodities that has seen the largest price increases of the goods and services being examined. Renters have not been spared as home prices have hit new highs, pricing many potential buyers out of the market.
As of April, the median sale price of homes across the four regions were as follows:
- Midwest: $372,500
- Northeast: $701,500
- South: $371,600
- West: $537,100.
Source: FRED
Comparing the prices to those captured in April 2023, all regions have seen a downward trend. However, with many still paying higher prices than their previous mortgage, the cost of shelter has continued to increase in all nine regions this year.
- East North Central +3.86% - Midwest
- West North Central +3.21% - Midwest
- East South Central +3.14% - South
- New England +3.10% - Northeast
- Middle Atlantic +2.89% - Northeast
- Pacific +2.11% - West
- South Atlantic +2.01% - South
- West South Central +1.60% - South
- Mountain +1.41% - West
How have prices for fuel and utilities changed over since January?
There are some major differences in how fuel and utility prices have shifted across the regions since January. In the Northeast, average prices have moved up 1.17 percent; however, in New England, they have fallen 2.89 percent, and in the Middle Atlantic, they have shot up 3.03 percent.
Four regions have seen prices fall, with five seeing them increase since the beginning of the year.
- Middle Atlantic +3.03% - Northeast
- West South Central +2.39% - South
- East South Central +1.83% - South
- East North Central +1.03% - Midwest
- South Atlantic +0.57% - South
- New England -2.89% - Northeast
- Pacific -0.38% - West
- West North Central -0.79% - Midwest
- Mountain -1.77% - West
Though prices in the Moutain states have fallen by the greatest percentage, prices there remain the highest in the country.