What are the top 10 most expensive and cheapest states to live in 2023?
If you are considering places to relocate to, here are the states that are the most expensive and cheapest to live in within the US, based on utility bills.
In the United States, a little more than $2,000 a month is paid for services and household bills on average. According to the 2023 US Bill Payment Market Report by bill payment service Doxo, the average household spends $2,046 per month and $24,557 per year on these costs.
This report breaks down household costs state by state based on the 10 most common service categories, including the following:
- Mortgage
- Rental
- Auto
- Utilities (electricity, gas, water and sewage, and waste and recycling)
- Car insurance
- Cable, internet, and phone
- Health insurance
- Mobile phone
- Alarms and security
- Life insurance
What are the top 10 most expensive and cheapest states to live in 2023?
Based on the services mentioned above, Doxo has determined which are the most expensive and cheapest states to live in.
The states where it is most expensive to live
Based on average monthly spending on household bill payments, these are the states in the United States where it is most expensive to live:
- Hawaii: $3,070
- California: $2,838
- New Jersey: $2,727
- Massachusetts: $2,656
- Maryland: $2,569
- Connecticut: $2,504
- New York: $2,495
- Washington: $2,468
- Colorado: $2,413
- Alaska: $2,335
Hawaii residents spend on average, $3,070 each month, 50% above the national average of $2,046. This makes it the number one most expensive state in the United States, based on the cost of household bills. The Doxo report found that the median monthly mortgage bill in Hawaii is $2,247, while the median rent is $1,856.
California is the second most expensive state in which to live based on average cost of monthly expenses. According to the report, the median cost of bills in California is $2,838 per month, which is 38.7% above the national average and 40% of median household income. The largest monthly bill for California residents is a mortgage, which averages $2,402. For those who rent, the average is $1,762 per month.
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The states where it is cheapest to live
These states have the lowest average monthly service expenses in the country:
- Alabama: $1,772
- Missouri: $1,766
- New Mexico: $1,756
- South Dakota: $1,743
- Indiana: $1,721
- Kentucky: $1,710
- Oklahoma: $1,705
- Arkansas: $1,635
- Mississippi: $1,616
- West Virginia: $1,530
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West Virginia ranked as the least expensive state based on household bills. The average cost of payments in this state is $1,530 per month, which is 25.2% below the national average. According to Doxo, the median mortgage in the state is $879, while the median monthly rent is $785.
The second least expensive state is Mississippi. The average monthly cost of bills in the state is $1,616, or 21.1% below the national average. The average monthly mortgage is $1,032, while the average monthly rent is $843.
For more information on monthly expenses in each state, check out Doxo’s full US Bill Payment Market Report 2023.