Hawaii has the highest cost of living in the U.S., with 'really high home prices' and expensive goods, according to an expert.

The most expensive state in the U.S. isn't New York or California.

According to data from Stacker, Realtor.com ranked Hawaii as the state with the highest cost of living in its list of the most expensive states.

According to Hannah Jones, senior economic research analyst at Realtor.com, the states at the top of the list may not be surprising since we are already aware that places like California, Washington D.C., and Massachusetts are expensive due to their major expensive cities.

Stacker, a data-driven platform, employed a survey from The Council for Community and Economic Research to determine the cost of living in each state during the second quarter of 2024. The cost of living was determined by averaging the prices of goods and services in the metro areas and cities of each state.

The West and Northeast coasts are where the priciest states in America are located, according to the report.

People don't usually associate Hawaii with expenses compared to the continental U.S., which is why Jones found Hawaii's ranking a bit unexpected.

According to Jones, Hawaii's high home prices and remote location make it expensive to obtain goods and services, resulting in additional costs of living there.

She explains that the cost of transporting essential goods is passed on to consumers, resulting in higher prices.

The top 10 U.S. states with the highest cost of living

1. Hawaii
2. California
3. Washington, D.C.
4. Massachusetts
5. New York
6. Alaska
7. Washington
8. New Jersey
9. Maryland
10. Vermont

The U.S. state with the second-highest cost of living is California.

Jones states that the high demand for homes in California, coupled with limited supply, makes purchasing or renting a home in the state exorbitantly priced.

Over the past decade, the California Department of Housing and Community Development estimates that the state has fallen short by approximately 100,000 housing units compared to its target of 260,000 units.

Major economic hubs like San Francisco, Los Angeles, and San Diego are located in California, with home prices often reaching into the millions.

Gas prices in California are typically the highest in the nation due to taxes and environmental mandates, as reported by CNBC.

Earn more money at work by taking CNBC's online course on negotiating a higher salary. Expert instructors will teach you the necessary skills to increase your paycheck, including how to prepare, build confidence, communicate effectively, and craft a counteroffer. Start now and use the coupon code EARLYBIRD for a 50% discount through November 26, 2024.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.