**Hawaii Tops the List as Most Expensive State in the U.S.**

When thinking of the most expensive states in the U.S., one might typically consider New York or California. However, Realtor.com has published a new list, revealing that Hawaii holds the top spot for the highest cost of living. Based on data from Stacker, a data-driven platform, this ranking was developed using a cost of living survey conducted by The Council for Community and Economic Research during the second quarter of 2024.

According to Hannah Jones, senior economic research analyst at Realtor.com, the findings for the top states were not entirely unexpected, with California, Washington D.C., and Massachusetts consistently recognized for their high expenses. Interestingly, Hawaii's placement as the most expensive state did come as a slight surprise. “Hawaii has really high home prices and is very remote, which means that it is very expensive to get goods and services in, and that adds additional costs to living there,” Jones explains.

The report highlighted that the most expensive states in America are largely situated along the West and Northeast coasts. After Hawaii, California takes the second spot for highest cost of living. California's challenge lies in the significant imbalance between demand for homes and the available supply. Over the past ten years, the state has added around 80,000 housing units annually but needed to build closer to 180,000 to meet demand, according to the California Department of Housing and Community Development.

Major Californian cities such as San Francisco, Los Angeles, and San Diego contribute to the high living costs, with home prices often reaching millions. Additionally, energy costs in California, particularly for gas, are the highest in the nation, driven largely by taxes and environmental regulations.

Other states making the top ten list include Washington D.C., Massachusetts, New York, Alaska, Washington, New Jersey, Maryland, and Vermont. This data overall indicates that while prominent cities heavily influence living expenses, unique challenges like geography and infrastructure can also drive up costs significantly, as seen in Hawaii.