Hawaii has been ranked as the state with the highest cost of living in the U.S., surpassing California and New York. The high home prices and the remote location contribute to elevated costs for goods and services, which are passed on to consumers. Other expensive states include California, Washington D.C., and Massachusetts, primarily due to high demand and limited housing supply.
McAllen, Texas, has been ranked as the city with the lowest cost of living in the U.S., boasting a regional price parity of 86.92%, with housing costs significantly contributing to its affordability. The median home price is $275,000, and the area has seen a 41% increase in housing supply year over year, driven by investment and demand. Following McAllen, Wichita, Kansas, ranks second with a regional price parity of 89.16% and a median home price of $292,700.
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