Despite President Trump’s social media declaration that “the USA is Rockin’, there is VERY LOW INFLATION,” the rising cost of living looms over many Americans, especially so in some states, according to a recent CNBC study.
While inflation has cooled across many states since the highs of the pandemic, it rose in June and remains a persistent issue for residents of other states.
“One of the biggest problems with inflation is that once it has burrowed into an economy, it is very difficult to rid of it,” according to the report. “Just when Federal Reserve policymakers thought they might have finally gotten the better of the inflation that gripped the U.S. economy following the pandemic, along came the specter of tariffs.”
To determine which states are most expensive in 2025, CNBC relied on prices indexed by the Council for Community and Economic Research, as well as data that captured housing affordability and the rising cost of insurance.
5. Oregon
The Beaver State landed high on the list thanks in large part to the cost of housing. The amount of money going to mortgages and rent takes up over 30% of household income for a third of residents, according to the study.
On top of that, the study’s author notes that a loaf of bread costs 12% more in Portland, Oregon than in Portland, Maine.
A 2025 cost of living index by the Missouri Economic Research and Information Center (MERIC) found that Oregonians paid more for groceries than residents of all but six states and Puerto Rico.
4. Colorado
Like so many western states, the cost of home insurance is skyrocketing – and getting increasingly hard to obtain, in some cases – amid devastating wildfires and other natural disasters.
“We’re on a collision course with escalating market conditions, where everything that insurance pays for is going up in price,” Carole Walker, with the Rocky Mountain Insurance Information Association, told Nexstar’s KDVR last year. “Insurance premiums are on the rise nationally, but unfortunately, in Colorado, we really are in that tipping point where we’re seeing some of the fastest rising rates.”
3. Florida
Long-seen as an ideal destination for retirees with fixed incomes, some may be surprised to find the Sunshine State so high on the list. Similar to Colorado, the increasing frequency and devastation from hurricanes has led to what the author calls “the worst homeowners insurance crisis in the country.”
Unfortunately for Floridians, whopping insurance rates – along with policy cancellations – combine with some of the least affordable properties in the country, CNBC reports.
2. Hawaii
Living roughly 2,400 miles from mainland U.S. means accepting a consequential tradeoff. Waking up to paradisiacal views and stunning beaches is offset by shocking costs at the grocery store, optometrist and elsewhere.
Despite the high cost of goods, CNBC notes that the Aloha State has not yet been battered by the insurance crisis so many other states are struggling with.
1. California
Blessed with a stunning coastline, some of the finest national parks in the country and (mostly) idyllic weather, California has a lot going for it. One thing the Golden State isn’t known for, however, is affordability.
Prone to devastating wildfires, like the deadly blazes that ripped through Los Angeles county in January, retaining – and signing up for – affordable home insurance has become a daunting challenge for residents in some parts of the state.
Home prices are also some of the highest in the nation, with the median price of a single family home surpassing $900,000 statewide earlier this year.
Rounding out the top 12 were New York, Massachusetts, Maryland, Washington, Texas, Louisiana and Arizona. See the full study for more on what is driving up the cost of living in those states.
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