Cost of living index in the U.S. 2023, by state

Oklahoma and Mississippi 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 Mississippi, the cost of living index amounted to 86.2 - well below the national benchmark of 100. Florida - which had an index value of 100.7 in 2023 - was only slightly above that benchmark. Expensive places to live included Hawaii, District of Columbia, and Massachusetts. 

Housing costs in the U.S. 

Housing is usually the highest expense in a household’s budget. In 2023, the average house sold for approximately 427,000 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, Mississippi, and Louisiana, the median price of the typical single-family home was less than 200,000 U.S. dollars. That makes living costs in these states significantly lower than in states such as Hawaii and California, where housing is much more expensive. 

What other expenses affect the cost of living? 

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 500 U.S. dollars. That was because of the significantly higher prices for electricity and natural gas in these states.