Cost of Living in the USA: Rent, Food & Transport by State

ByDavid J. Stuck Hours Posted on Hours Updated on
Map showing transportation icons over the USA to illustrate the cost of living, rent, food, and transport differences by stat…

Cost of Living in the USA: State-by-State Guide to Rent, Food & Transport

Thinking about moving to the United States, or from one state to another? The USA isn’t one single price tag. Living in Hawaii can cost more than twice as much as life in Oklahoma when you add up rent, groceries and getting around. According to recent cost-of-living data, Oklahoma’s overall index is about 84.4, while Hawaii is up at roughly 179.7 on a scale where the U.S. average is 100. That’s a huge gap.

Quick snapshot

  • Housing is the big one: the average U.S. household spends about 33% of its budget on housing, 13% on food and 17% on transportation.
  • In low-cost states like Mississippi or Kansas, a single adult’s basic annual housing cost is around $10,000–$11,000 (≈ $850–$930/month).
  • In high-cost states such as California or New York, that same person faces roughly $21,000–$22,000 in annual housing costs (≈ $1,750–$1,900/month).
  • Price levels vary by state: federal “regional price parity” data shows states like Arkansas and Mississippi as among the cheapest, and California, New Jersey and Hawaii among the most expensive.

How the U.S. Cost of Living Is Measured (Without Getting Too Nerdy)

Before we dive into each state, it helps to know what you’re looking at when you see “cost of living index 90” or “living wage $28/hour”. Here are the main tools behind the numbers:

  • Cost of Living Index (COLI) – Groups like MERIC (Missouri Economic Research and Information Center) compare prices for grocery, housing, utilities, transport, healthcare and other costs across states. The U.S. average is set to 100. A state at 85 is about 15% cheaper overall; a state at 135 is roughly 35% more expensive.
  • Regional Price Parities (RPP) – The U.S. Bureau of Economic Analysis tracks price levels across states and metros. It confirms the same picture: California, New Jersey and Hawaii are among the priciest, while Arkansas and Mississippi are on the low end.
  • MIT Living Wage Calculator – Instead of just an index, MIT estimates a “living wage” for each state and county and shows actual dollar amounts per year for housing, food, transportation and other basics, for different household types.

In this guide, we’ll lean on these sources so you can compare rent, food and transport in a way that’s actually useful if you’re planning a move, a study abroad year, or just dreaming a little.

What a “Normal” Budget Looks Like in the USA

Let’s start with a typical American household. In 2023, U.S. households spent about $77,280 per year on average. Around $25,400 went to housing, $10,000 to food and about $13,200 to transportation.

  • Housing: ~33% of budget
  • Food: ~13%
  • Transport: ~17%

Those three items alone can easily eat up over half of your income. So if you understand how they change by state, you already understand a lot about the U.S. cost of living.

State-by-State Overview: Cheapest vs Most Expensive States

Cost-of-living indexes put every state on the same scale: U.S. = 100. Below that is cheaper than average; above that is more expensive. MERIC’s 2025 Q3 data (based on C2ER surveys) is a good current snapshot.

BucketOverall index (approx.)StatesRent & housingFood & groceriesTransport
Very low-cost< 90Oklahoma, Mississippi, Alabama, West Virginia, Kansas, Missouri, ArkansasHousing index mostly 70–78 – often 20–30% cheaper than U.S. average.Groceries a bit cheaper than average; savings are real but not huge.Car costs lower than average but still a big share of the budget.
Low-cost90–95Tennessee, Iowa, Indiana, Texas, North Dakota, Nebraska, South Dakota, Georgia, Kentucky, New Mexico, South Carolina, Louisiana, Ohio, Minnesota, Michigan, Wyoming, IllinoisHousing roughly 10–20% below U.S. average outside the hottest city markets.Food close to national prices; you save more on rent than on groceries.Driving is common; transport costs vary with mileage & fuel.
Near-average95–105Pennsylvania, North Carolina, Wisconsin, Nevada, Idaho, Utah, Florida, Virginia, Colorado, Delaware, Puerto Rico*Housing ranges from slightly below to slightly above average depending on city.Groceries broadly in line with national prices.Some states (like Nevada, Idaho) have noticeably higher transport indices.
High-cost105–115Arizona, New Hampshire, Montana, Oregon, Rhode Island, Vermont, Washington, Connecticut, Maine, New JerseyHousing often 15–40% above average; coastal & tourist regions hit hardest.Groceries can be 5–10% pricier, especially in the Northeast.Insurance, fuel and parking can push transport costs up.
Very high-cost> 115Maryland, New York, Alaska, District of Columbia, California, Massachusetts, HawaiiHousing index from about 148 in Maryland up to nearly 299 in Hawaii – roughly 50–200% above U.S. average.Food is higher but usually not as extreme as rent.Urban transit can help, but car-heavy lifestyles get very expensive.

*Puerto Rico is included in the index, but it’s a territory, not a state.

Rent & Housing: The Biggest Difference Between States

When people say a place has a “high cost of living”, they’re usually talking about rent and housing. Federal Regional Price Parities show California with the highest price level overall, and especially for housing rents, while places like Mississippi and Arkansas sit at the bottom of the scale.

Example: Mississippi (budget-friendly)

MIT’s Living Wage Calculator estimates typical annual costs for a single adult in Mississippi at roughly

  • Housing: about $10,555/year (~$880/month)
  • Food: about $4,024/year (~$335/month)
  • Transportation: about $10,929/year (~$910/month)

Notice something? Even in a “cheap” state, transport costs are close to housing, because you almost certainly need a car and you’ll drive a lot.

Example: California (high-cost)

For a single adult in California, the same tool shows

  • Housing: about $22,390/year (~$1,865/month)
  • Food: about $4,566/year (~$380/month)
  • Transportation: about $10,607/year (~$885/month)

Food and transport aren’t that different from Mississippi in dollar terms, but housing more than doubles. This is why people can earn a much higher salary in coastal states and still feel broke.

Within each state, of course, the spread is huge. Downtown San Francisco is nothing like a small inland town. Use the state numbers as a baseline, then zoom in on specific cities before you sign anything.

Food Prices: Groceries Don’t Vary as Wildly as Rent

Housing jumps all over the map. Food costs move more slowly.

In MERIC’s 2025 data, grocery indexes cluster much closer to the U.S. average of 100 than housing indexes do. Cheaper states like Arkansas, Kansas and Mississippi sit in the low-to-mid 90s for groceries, while higher-priced states such as Vermont, Maryland and Hawaii go a bit above 105–130.

If you’re trying to save money, moving for cheaper rent usually matters more than hunting tiny differences in grocery prices.

  • Cheaper-food states (relative): many of the Southern and Midwestern states – Oklahoma, Arkansas, Kansas, Mississippi, Missouri, Georgia.
  • Higher-food states: Northeast & islands – Vermont, Maine, New Jersey, Hawaii – where shipping and wages push up prices.

MIT’s figures show annual food costs for a single adult ranging roughly from $4,000–$4,300 in low-cost states (Mississippi, Kansas) to around $4,500–$4,800 in pricier ones like California or New York. That’s a difference, but not life-changing on its own.

Transportation: Cars, Distances and Why “Cheap” States Aren’t Always Cheap

Transportation costs in the U.S. are sneaky. On average, households spend more than $13,000 per year getting around – cars, fuel, insurance, repairs and public transport combined.

State transport indexes from MERIC show:

  • Low transport costs (index < 95) in places like Missouri, Oklahoma, Arkansas, Louisiana – fuel and insurance tend to be cheaper, though you may drive long distances.
  • High transport costs (index > 110) in parts of the West and Pacific Northwest – Nevada, Idaho, Oregon, Washington – where car insurance, fuel and distances can all add up.

MIT’s annual transport costs for a single adult land around $10,400–$10,900 in cheaper states like Mississippi and Kansas, and roughly $8,000–$10,600 in high-cost states such as New York and California.

So you might pay less at the pump in Mississippi than in New York, but you’ll often own a car, commute by road, and travel farther. In New York City, you might skip the car entirely and swap those costs for a transit pass.

State-by-State Cheat Sheet (What Each Group Feels Like)

Here’s a more “human” way to read the states, based on recent cost-of-living and living-wage data.

  • Very low-cost states – OK, MS, AL, WV, KS, MO, AR
    Rent is the main bargain here. A modest one-bedroom outside the hottest city markets often sits below $1,000/month, sometimes well below. Food is only slightly cheaper than average, and you’ll definitly still feel your car costs.
  • Low-cost states – TN, IA, IN, TX, ND, NE, SD, GA, KY, NM, SC, LA, OH, MN, MI, WY, IL
    These are sweet-spot states: salaries can be decent, housing stays under big-coastal levels, and day-to-day life is manageable if you budget for a car.
  • Near-average states – PA, NC, WI, NV, ID, UT, FL, VA, CO, DE (plus PR)
    Life here feels “typical U.S.” cost-wise. Expect big differences between tourist hubs (Las Vegas, Miami, Denver) and smaller cities in the same state.
  • High-cost states – AZ, NH, MT, OR, RI, VT, WA, CT, ME, NJ
    You begin to feel the squeeze. Housing, healthcare and sometimes utilities jump. People often house-share longer, or live farther from city centers to keep rent sane.
  • Very high-cost states – MD, NY, AK, DC, CA, MA, HI
    This is the “think twice” club. MIT’s numbers show basic pre-tax incomes for a single adult easily exceeding $55,000–$60,000 just to cover essentials, not luxuries. Short commutes and small apartments are the trade-off.

How to Estimate Your Cost of Living in Any U.S. State

Ready to plug in your own plans? Here’s a simple workflow you can follow for any state.

  1. Pick a city, not just a state. Austin ≠ rural West Texas. Honolulu ≠ the Big Island.
  2. Check a state cost-of-living index. Use MERIC or other COLI tables to see how much more/less expensive the state is vs U.S. = 100.
  3. Run the MIT Living Wage Calculator for that state and county. Note the annual housing, food and transportation line items for your household type.
  4. Compare to your income. Convert the suggested hourly living wage to yearly pay (hours × wage). If your offer is much lower, something has to give: roommates, longer commute, or a cheaper state.
  5. Adjust for lifestyle. Love eating out? Add to the food budget. Don’t own a car? Knock down transport – but add a bit for rideshares and transit.
Open the MIT Living Wage Calculator

Final Tips Before You Choose a State

  • Don’t chase salary without checking rent. A $90,000 offer in California can leave you with less free cash than $60,000 in Kansas once housing and taxes hit.
  • Look at commuting early. In car-heavy states, “cheap” suburbs can become expensive once fuel, insurance and time are counted.
  • Budget for healthcare and taxes too. They’re not the focus of this guide, but they shift the picture a lot between, say, Texas and New York.
  • Think in total annual cost, not single prices. A slightly cheaper burger doesn’t matter if rent is $800 higher.

Sources

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