The 5 Most Expensive States In The US
The cost of living continues to rise around the world, especially in America, making it harder and harder for families to survive. Each state does get to set its own rules when it comes to “living wage” to a certain degree, but even covering basic expenses and essential items is becoming increasingly more difficult to afford. The majority of the population is now forced to live pretty much paycheck to paycheck.
In certain states, it can be shocking just how big the gap is between salary and how much it costs to live there. These five states or areas cost the most to live in, based on a family of four with both parents working.
New York
With a living wage of $88,056 compared to a median income of $67,844, it’s no wonder so many New Yorkers are struggling to get by. When you consider that the minimum wage only brings in around $49,088 per year, it reveals the desperation families can experience.
Surprisingly, New Yorkers are reported to pay a staggering $23,215 per year just on child care, which amounts to over $7,000 more than any other state in the country.
California
California’s living wage is $81,056, while the median income in the state sits around $75,277 for families. When it comes to minimum wage, the salary can vary between $49,920 and $54,080. This state is the most populous in the entire country and also the second most expensive overall. Families with two kids pay approximately $19,875 each year toward housing, contributing to how expensive it is to live in the state. Only Hawaii and D.C. pay higher housing costs.
The state’s minimum wage hovers around $12 or $13 an hour, which is one of the highest in the U.S., but in spite of that, the majority of families fall close to $27,000 short of meeting their basic needs.
Maryland
Maryland claims a living wage of $76,043 compared to a median family income of $83,242. By comparison to California and New York, its median wage is reasonable. That being said, many only make a yearly minimum wage of $45,760.
This leaves a large number of families making around $30,283 less than the living wage in Maryland. Add to that the fact that both transportation and housing cost more than in most states. Suddenly, Maryland doesn’t live up to its reputation as The Free State.
New Jersey
In New Jersey, there’s a median income of $81,740 in comparison to a living wage of $75,884. With regards to minimum wage, that amounts to $45,760 on average, leaving low-income families $30,000 short of the state’s living wage.
Unfortunately, the state also has some of the most expensive medical care among its peers, rounding out to $7,688 a year. Their current minimum wage is $10 an hour, with hopes of reaching $15 by 2025, but even so, families in that income bracket would fall $13,484 short of a living wage.
District of Columbia
In the capital of the nation, the living wage is set at $75,551 with a median income of $85,203. The minimum wage sits around $58,240, though the area boasts the highest median income, as well as the highest minimum wage. At $14 an hour for minimum wage, an average family of four with both parents in the workforce will still come home with $17,311 less than they require to live in the area. D.C. has some of the most expensive housing, and can cost residents around $21,516 a year, so it would require a fair amount to survive if you wanted to move there.
While these areas might seem expensive, individual situations may vary. That being said, if you’re hoping to find a place where your dollar goes farther than average, consider skipping these five hubs.