The Most Expensive States Retirees Should Avoid

Inflation is no longer running at the extreme levels Americans saw in 2022, but that does not mean everyday life has become cheap again. Prices have continued to rise from already elevated levels, and many households are still paying more for groceries, housing, insurance, utilities, and healthcare than they were just a few years ago. For retirees, that pressure can be especially difficult because many rely on fixed income, savings, pensions, or Social Security benefits that may not keep pace with rising costs.

That makes location one of the most important financial decisions in retirement. While inflation affects the entire country, the cost of living varies dramatically from state to state. A retirement budget that feels comfortable in one part of the country may be stretched thin in another, especially in states where housing, transportation, and healthcare expenses run far above the national average.

To identify the most expensive states for retirees to live in, My Investing News reviewed data from the Missouri Economic Research and Information Center’s Composite Cost of Living Index. The index compares each state’s overall cost of living to the national average of 100. States with scores above 100 are more expensive than the national average, while states below 100 are less expensive. Rankings are based on the most recent data available.

Housing remains one of the biggest drivers of affordability differences across the country. In many of the most expensive states, home prices, rents, property taxes, and insurance costs can push total living expenses far above what retirees may have planned for. Other key categories, including groceries, utilities, transportation, and healthcare, can further increase the burden.

Higher incomes sometimes help offset higher costs, but that does not always help retirees in the same way it helps working households. Once someone leaves the workforce, relocating to a high-cost state can quickly eat into savings and reduce long-term financial flexibility. For retirees deciding where to live next, understanding which states are the most expensive can help avoid a costly move.

• Avg. cost of living in 2023: 86.2, or 13.8% less than avg
• Most expensive category: Utilities — 98.2, or 1.8% less than avg
• Least expensive category: Housing — 68.5, or 31.5% less than avg
• Median household income, 2022: $59,673 (6th lowest)
• Poverty rate, 2022: 15.7% (8th highest)
• Inflation rate, Feb 2024: 3.5% (for West South Central region)

• Avg. cost of living in 2023: 86.3, or 13.7% less than avg
• Most expensive category: Health — 98.4, or 1.6% less than avg
• Least expensive category: Housing — 70.9, or 29.1% less than avg
• Median household income, 2022: $52,719 (the lowest)
• Poverty rate, 2022: 19.1% (the highest)
• Inflation rate, Feb 2024: 3.5% (for East South Central region)

• Avg. cost of living in 2023: 87.1, or 12.9% less than avg
• Most expensive category: Utilities — 106.6, or 6.6% more than avg
• Least expensive category: Housing — 67.4, or 32.6% less than avg
• Median household income, 2022: $68,925 (17th lowest)
• Poverty rate, 2022: 12.0% (25th lowest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 87.7, or 12.3% less than avg
• Most expensive category: Grocery — 98.4, or 1.6% less than avg
• Least expensive category: Housing — 66.9, or 33.1% less than avg
• Median household income, 2022: $54,329 (2nd lowest)
• Poverty rate, 2022: 17.9% (3rd highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region)

• Avg. cost of living in 2023: 88.3, or 11.7% less than avg
• Most expensive category: Utilities — 102.4, or 2.4% more than avg
• Least expensive category: Housing — 70, or 30% less than avg
• Median household income, 2022: $59,674 (7th lowest)
• Poverty rate, 2022: 16.2% (7th highest)
• Inflation rate, Feb 2024: 3.5% (for East South Central region)

• Avg. cost of living in 2023: 88.5, or 11.5% less than avg
• Most expensive category: Utilities — 98.6, or 1.4% less than avg
• Least expensive category: Housing — 77, or 23% less than avg
• Median household income, 2022: $64,811 (10th lowest)
• Poverty rate, 2022: 13.2% (16th highest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 89.0, or 11.0% less than avg
• Most expensive category: Grocery — 95.3, or 4.7% less than avg
• Least expensive category: Housing — 74.6, or 25.4% less than avg
• Median household income, 2022: $55,432 (4th lowest)
• Poverty rate, 2022: 16.8% (5th highest)
• Inflation rate, Feb 2024: 3.5% (for West South Central region)

• Avg. cost of living in 2023: 90.3, or 9.7% less than avg
• Most expensive category: Grocery — 97.7, or 2.3% less than avg
• Least expensive category: Housing — 82.4, or 17.6% less than avg
• Median household income, 2022: $65,254 (11th lowest)
• Poverty rate, 2022: 13.3% (15th highest)
• Inflation rate, Feb 2024: 3.5% (for East South Central region)

• Avg. cost of living in 2023: 90.3, or 9.7% less than avg
• Most expensive category: Health — 99.4, or 0.6% less than avg
• Least expensive category: Housing — 74.1, or 25.9% less than avg
• Median household income, 2022: $69,588 (20th lowest)
• Poverty rate, 2022: 11.0% (18th lowest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 90.6, or 9.4% less than avg
• Most expensive category: Utilities — 101.1, or 1.1% more than avg
• Least expensive category: Housing — 77.1, or 22.9% less than avg
• Median household income, 2022: $66,986 (14th lowest)
• Poverty rate, 2022: 13.4% (13th highest)
• Inflation rate, Feb 2024: 2.6% (for East North Central region)

• Avg. cost of living in 2023: 90.8, or 9.2% less than avg
• Most expensive category: Health — 100.3, or 0.3% more than avg
• Least expensive category: Housing — 78.2, or 21.8% less than avg
• Median household income, 2022: $72,837 (22nd highest)
• Poverty rate, 2022: 12.7% (19th highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region)

• Avg. cost of living in 2023: 90.9, or 9.1% less than avg
• Most expensive category: Transportation — 100, or 0% average
• Least expensive category: Housing — 78.6, or 21.4% less than avg
• Median household income, 2022: $69,597 (21st lowest)
• Poverty rate, 2022: 11.2% (20th lowest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 91.0, or 9.0% less than avg
• Most expensive category: Health — 98.7, or 1.3% less than avg
• Least expensive category: Housing — 81.6, or 18.4% less than avg
• Median household income, 2022: $55,416 (3rd lowest)
• Poverty rate, 2022: 18.6% (2nd highest)
• Inflation rate, Feb 2024: 3.5% (for West South Central region)

• Avg. cost of living in 2023: 91.0, or 9.0% less than avg
• Most expensive category: Utilities — 106.7, or 6.7% more than avg
• Least expensive category: Housing — 75.8, or 24.2% less than avg
• Median household income, 2022: $66,785 (13th lowest)
• Poverty rate, 2022: 12.6% (20th highest)
• Inflation rate, Feb 2024: 2.6% (for East North Central region)

• Avg. cost of living in 2023: 92.0, or 8.0% less than avg
• Most expensive category: Utilities — 104.4, or 4.4% more than avg
• Least expensive category: Housing — 73.7, or 26.3% less than avg
• Median household income, 2022: $59,341 (5th lowest)
• Poverty rate, 2022: 16.5% (6th highest)
• Inflation rate, Feb 2024: 3.5% (for East South Central region)

• Avg. cost of living in 2023: 92.1, or 7.9% less than avg
• Most expensive category: Transportation — 103, or 3% more than avg
• Least expensive category: Housing — 79.8, or 20.2% less than avg
• Median household income, 2022: $76,708 (18th highest)
• Poverty rate, 2022: 11.9% (24th lowest)
• Inflation rate, Feb 2024: 2.6% (for East North Central region)

• Avg. cost of living in 2023: 92.4, or 7.6% less than avg
• Most expensive category: Health — 97.9, or 2.1% less than avg
• Least expensive category: Housing — 87.1, or 12.9% less than avg
• Median household income, 2022: $69,728 (22nd lowest)
• Poverty rate, 2022: 12.5% (21st highest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 92.4, or 7.6% less than avg
• Most expensive category: Grocery — 102.3, or 2.3% more than avg
• Least expensive category: Housing — 80, or 20% less than avg
• Median household income, 2022: $70,042 (23rd lowest)
• Poverty rate, 2022: 11.8% (22nd lowest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 92.7, or 7.3% less than avg
• Most expensive category: Utilities — 104, or 4% more than avg
• Least expensive category: Housing — 83.1, or 16.9% less than avg
• Median household income, 2022: $72,284 (25th highest)
• Poverty rate, 2022: 14.0% (10th highest)
• Inflation rate, Feb 2024: 3.5% (for West South Central region)

• Avg. cost of living in 2023: 94.0, or 6.0% less than avg
• Most expensive category: Health — 99.3, or 0.7% less than avg
• Least expensive category: Housing — 87.3, or 12.7% less than avg
• Median household income, 2022: $59,726 (8th lowest)
• Poverty rate, 2022: 17.6% (4th highest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 94.1, or 5.9% less than avg
• Most expensive category: Health — 109.2, or 9.2% more than avg
• Least expensive category: Housing — 82.1, or 17.9% less than avg
• Median household income, 2022: $82,338 (14th highest)
• Poverty rate, 2022: 9.6% (6th lowest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region)

• Avg. cost of living in 2023: 94.6, or 5.4% less than avg
• Most expensive category: Health — 111.2, or 11.2% more than avg
• Least expensive category: Housing — 83.4, or 16.6% less than avg
• Median household income, 2022: $71,970 (26th highest)
• Poverty rate, 2022: 11.5% (21st lowest)
• Inflation rate, Feb 2024: 3.0% (for West North Central region}

• Avg. cost of living in 2023: 94.7, or 5.3% less than avg
• Most expensive category: Grocery — 101.4, or 1.4% more than avg
• Least expensive category: Housing — 81.2, or 18.8% less than avg
• Median household income, 2022: $65,720 (12th lowest)
• Poverty rate, 2022: 13.4% (12th highest)
• Inflation rate, Feb 2024: 2.6% (for East North Central region}

• Avg. cost of living in 2023: 95.1, or 4.9% less than avg
• Most expensive category: Health — 112.3, or 12.3% more than avg
• Least expensive category: Housing — 84.7, or 15.3% less than avg
• Median household income, 2022: $70,996 (24th lowest)
• Poverty rate, 2022: 10.7% (14th lowest)
• Inflation rate, Feb 2024: 2.6% (for East North Central region}

• Avg. cost of living in 2023: 95.3, or 4.7% less than avg
• Most expensive category: Utilities — 106.5, or 6.5% more than avg
• Least expensive category: Housing — 86.5, or 13.5% less than avg
• Median household income, 2022: $64,115 (9th lowest)
• Poverty rate, 2022: 14.0% (11th highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region}

• Avg. cost of living in 2023: 95.3, or 4.7% less than avg
• Most expensive category: Health — 108.1, or 8.1% more than avg
• Least expensive category: Housing — 90.2, or 9.8% less than avg
• Median household income, 2022: $67,481 (15th lowest)
• Poverty rate, 2022: 12.8% (17th highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region}

• Avg. cost of living in 2023: 95.6, or 4.4% less than avg
• Most expensive category: Utilities — 107.3, or 7.3% more than avg
• Least expensive category: Housing — 81.9, or 18.1% less than avg
• Median household income, 2022: $71,798 (25th lowest)
• Poverty rate, 2022: 11.8% (23rd lowest)
• Inflation rate, Feb 2024: 2.6% (for Middle Atlantic region}

• Avg. cost of living in 2023: 98.6, or 1.4% less than avg
• Most expensive category: Transportation — 105.2, or 5.2% more than avg
• Least expensive category: Utilities — 85.7, or 14.3% less than avg
• Median household income, 2022: $72,785 (23rd highest)
• Poverty rate, 2022: 10.7% (15th lowest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region}

• Avg. cost of living in 2023: 100.7, or 0.7% more than avg
• Most expensive category: Housing — 106.3, or 6.3% more than avg
• Least expensive category: Health — 96.5, or 3.5% less than avg
• Median household income, 2022: $69,303 (18th lowest)
• Poverty rate, 2022: 12.7% (18th highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region}

• Avg. cost of living in 2023: 101.0, or 1.0% more than avg
• Most expensive category: Transportation — 116.6, or 16.6% more than avg
• Least expensive category: Health — 91.7, or 8.3% less than avg
• Median household income, 2022: $72,333 (24th highest)
• Poverty rate, 2022: 12.5% (23rd highest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region}

• Avg. cost of living in 2023: 101.1, or 1.1% more than avg
• Most expensive category: Health — 103.2, or 3.2% more than avg
• Least expensive category: Housing — 97, or 3% less than avg
• Median household income, 2022: $82,174 (15th highest)
• Poverty rate, 2022: 9.4% (3rd lowest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region}

• Avg. cost of living in 2023: 101.9, or 1.9% more than avg
• Most expensive category: Housing — 105.7, or 5.7% more than avg
• Least expensive category: Transportation — 94.8, or 5.2% less than avg
• Median household income, 2022: $85,873 (13th highest)
• Poverty rate, 2022: 10.6% (13th lowest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region}

• Avg. cost of living in 2023: 102.9, or 2.9% more than avg
• Most expensive category: Transportation — 109, or 9% more than avg
• Least expensive category: Utilities — 92.8, or 7.2% less than avg
• Median household income, 2022: $67,631 (16th lowest)
• Poverty rate, 2022: 12.1% (25th highest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 103.2, or 3.2% more than avg
• Most expensive category: Housing — 110.7, or 10.7% more than avg
• Least expensive category: Health — 91, or 9% less than avg
• Median household income, 2022: $89,168 (10th highest)
• Poverty rate, 2022: 8.2% (2nd lowest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 105.1, or 5.1% more than avg
• Most expensive category: Housing — 113.6, or 13.6% more than avg
• Least expensive category: Utilities — 91.3, or 8.7% less than avg
• Median household income, 2022: $89,302 (9th highest)
• Poverty rate, 2022: 9.4% (4th lowest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 108.4, or 8.4% more than avg
• Most expensive category: Housing — 124.1, or 24.1% more than avg
• Least expensive category: Health — 93.8, or 6.2% less than avg
• Median household income, 2022: $74,568 (20th highest)
• Poverty rate, 2022: 12.5% (22nd highest)
• Inflation rate, Feb 2024: 2.5% (for Mountain region)

• Avg. cost of living in 2023: 109.9, or 9.9% more than avg
• Most expensive category: Housing — 117.4, or 17.4% more than avg
• Least expensive category: Grocery — 101.8, or 1.8% more than avg
• Median household income, 2022: $69,543 (19th lowest)
• Poverty rate, 2022: 10.8% (16th lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 110.7, or 10.7% more than avg
• Most expensive category: Housing — 116.8, or 16.8% more than avg
• Least expensive category: Transportation — 92.5, or 7.5% less than avg
• Median household income, 2022: $81,854 (16th highest)
• Poverty rate, 2022: 10.8% (17th lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 112.8, or 12.8% more than avg
• Most expensive category: Utilities — 130.4, or 30.4% more than avg
• Least expensive category: Transportation — 100.4, or 0.4% more than avg
• Median household income, 2022: $88,429 (11th highest)
• Poverty rate, 2022: 9.8% (8th lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 113.9, or 13.9% more than avg
• Most expensive category: Housing — 135.8, or 35.8% more than avg
• Least expensive category: Health — 99.3, or 0.7% less than avg
• Median household income, 2022: $96,346 (2nd highest)
• Poverty rate, 2022: 9.7% (7th lowest)
• Inflation rate, Feb 2024: 2.6% (for Middle Atlantic region)

• Avg. cost of living in 2023: 114.1, or 14.1% more than avg
• Most expensive category: Utilities — 131, or 31% more than avg
• Least expensive category: Grocery — 102, or 2% more than avg
• Median household income, 2022: $89,992 (8th highest)
• Poverty rate, 2022: 7.2% (the lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 114.7, or 14.7% more than avg
• Most expensive category: Housing — 136.3, or 36.3% more than avg
• Least expensive category: Utilities — 95.9, or 4.1% less than avg
• Median household income, 2022: $75,657 (19th highest)
• Poverty rate, 2022: 12.1% (26th highest)
• Inflation rate, Feb 2024: 3.5% (for Pacific region)

• Avg. cost of living in 2023: 115.3, or 15.3% more than avg
• Most expensive category: Housing — 133.1, or 33.1% more than avg
• Least expensive category: Grocery — 104.8, or 4.8% more than avg
• Median household income, 2022: $73,991 (21st highest)
• Poverty rate, 2022: 10.4% (12th lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 116.0, or 16.0% more than avg
• Most expensive category: Housing — 128.7, or 28.7% more than avg
• Least expensive category: Utilities — 92.1, or 7.9% less than avg
• Median household income, 2022: $91,306 (7th highest)
• Poverty rate, 2022: 10.0% (9th lowest)
• Inflation rate, Feb 2024: 3.5% (for Pacific region)

• Avg. cost of living in 2023: 116.5, or 16.5% more than avg
• Most expensive category: Housing — 146.4, or 46.4% more than avg
• Least expensive category: Health — 97.4, or 2.6% less than avg
• Median household income, 2022: $94,991 (3rd highest)
• Poverty rate, 2022: 9.6% (5th lowest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region)

• Avg. cost of living in 2023: 125.2, or 25.2% more than avg
• Most expensive category: Utilities — 157.9, or 57.9% more than avg
• Least expensive category: Transportation — 115.3, or 15.3% more than avg
• Median household income, 2022: $88,121 (12th highest)
• Poverty rate, 2022: 11.0% (19th lowest)
• Inflation rate, Feb 2024: 3.5% (for Pacific region)

• Avg. cost of living in 2023: 125.9, or 25.9% more than avg
• Most expensive category: Housing — 176, or 76% more than avg
• Least expensive category: Utilities — 103.1, or 3.1% more than avg
• Median household income, 2022: $79,557 (17th highest)
• Poverty rate, 2022: 14.3% (9th highest)
• Inflation rate, Feb 2024: 2.6% (for Middle Atlantic region)

• Avg. cost of living in 2023: 138.5, or 38.5% more than avg
• Most expensive category: Housing — 198.8, or 98.8% more than avg
• Least expensive category: Health — 108.5, or 8.5% more than avg
• Median household income, 2022: $91,551 (6th highest)
• Poverty rate, 2022: 12.2% (24th highest)
• Inflation rate, Feb 2024: 3.5% (for Pacific region)

• Avg. cost of living in 2023: 146.5, or 46.5% more than avg
• Most expensive category: Housing — 218.5, or 118.5% more than avg
• Least expensive category: Grocery — 105.3, or 5.3% more than avg
• Median household income, 2022: $94,488 (4th highest)
• Poverty rate, 2022: 10.4% (11th lowest)
• Inflation rate, Feb 2024: 2.1% (for New England region)

• Avg. cost of living in 2023: 146.8, or 46.8% more than avg
• Most expensive category: Housing — 237.7, or 137.7% more than avg
• Least expensive category: Grocery — 105.4, or 5.4% more than avg
• Median household income, 2022: $101,027 (the highest)
• Poverty rate, 2022: 13.3% (14th highest)
• Inflation rate, Feb 2024: 3.9% (for South Atlantic region)

• Avg. cost of living in 2023: 180.3, or 80.3% more than avg
• Most expensive category: Housing — 313.1, or 213.1% more than avg
• Least expensive category: Grocery — 116.7, or 16.7% more than avg
• Median household income, 2022: $92,458 (5th highest)
• Poverty rate, 2022: 10.2% (10th lowest)
• Inflation rate, Feb 2024: 3.5% (for Pacific region)