These are the 10 most expensive states in America

Newly minted Federal Reserve Chairman Kevin Warsh sought early on to put to rest concerns that he might be less hawkish than his predecessors on inflation. 

“It’s the most regressive tax that anyone in Washington could come up with,” he said at his Senate confirmation hearing on April 22. “If you were trying to do the most harm to the least well off among us, inflation would be the way to do it.” 

And with inflation now running at the highest rate in three years, some states are doing more harm than others. 

The cost of living is an important consideration when companies decide where to do business. A high cost of living can make it hard to attract workers. It also means they’ll have to pay them more. 

That is why CNBC considers Cost of Living as one of ten categories of competitiveness in our America’s Top States for Business study, now in its 20th year.  

We rate the states based on an index of prices for a broad range of goods and services calculated by the Council for Community and Economic Research. We also consider housing affordability for both homeowners and renters. And, with the insurance crisis persisting nationwide, we measure the cost to insure a median-priced home based on the most recent available data. Under this year’s methodology, Cost of Living is worth 2% of each state’s total score. 

Some states are relative bargains. The following states are not.  

These are America’s most expensive states, along with average prices of some basic items in key metro areas. 

Illinois 

If the most famous Illinois resident were alive today, the cost of housing would utterly shock his log cabin sensibilities. Nearly a third of residents in the Land of Lincoln are paying more than 30% of their monthly income for housing, according to Census Bureau and ATTOM Data Solutions figures. And rent is more than 40% higher than it is in Ohio. The 2027 fiscal year budget signed by Democratic Gov. JB Pritzker in June allocates $100 million toward affordable housing programs and another $50 million toward down payment assistance. 

2026 Cost of Living score: 17 out of 50 points (Top States grade: D+) 

Consumer Price Index (May, Midwest Region, year-over-year): +5% 

Average rent (3-bedroom home): $2,425 

Average home price (Chicago): $642,053 

Monthly energy bill: $188.44 

Dozen eggs (Q1 2026): $4.04 

Loaf of bread (Q1 2026): $4.04 

New York 

Start spreadin’ the news — though it’s not news to anyone who lives in New York. The Empire State is an incredibly expensive place to live. The average home price in Manhattan is easily the highest in the nation at $2.9 million in the first quarter of this year, according to C2ER, which notes that the average apartment rent in the city is closing in on $6,000 a month. Even factoring in the…