How Prices Differ Across U.S. States 💵

Key Takeaways

• California stands as the nation's most expensive state, with a regional price parity (RPP) of 113 when indexed against the U.S. average of 100.
• Following in second is Washington DC, with a RPP of 111—driven significantly by its housing rents RPP of 169.
• Arkansas is the least expensive state, at 87, based on 2023 data from the Bureau of Economic Analysis.

California is the Nation's Most Expensive State

Regional price parities (RPPs) compare prices of goods and services in each state against the national average, with housing typically driving the majority of price differences.

In California, housing rents RPPs are 58% higher than the national average, second-only to Washington, DC.

Meanwhile, 13 states are at least 10% less expensive than the U.S. average, led by Arkansas, Mississippi, and South Dakota.