The 10 most expensive states to reside in the United States in 2024 are America's.

• Despite a decrease in CPI for the first time in 2020, inflation persists, with some U.S. states experiencing higher rates than others.
• The high cost of living is reflected not only in basic goods, food, and energy but also in the cost of housing and insurance.
• Some states are more expensive than others, according to CNBC's annual competitiveness study, America's Top States for Business.

The grip of inflation has significantly weakened since its peak of over 9% following the pandemic, as reflected in the June CPI's first monthly decline since May 2020. However, it continues to impact Americans' finances, with some areas experiencing a tighter hold than others.

The cost of living varies greatly from state to state, which impacts families' budgets and companies' decisions about where to locate. To attract employees and customers, companies can choose to set up shop in places where people's money goes further.

Our annual study of state competitiveness, America's Top States for Business, takes into account the cost of living as determined by the Council for Community and Economic Research, C2ER. We also consider factors such as housing affordability and the cost to insure a median-priced home, which is a growing concern.

In these states, life is not a relative bargain.

The ten most expensive states in America, along with the cost of some basic items in their most expensive metro areas.

10. Utah

The Beehive State faces a severe issue with home affordability, with the supply of homes failing to match the influx of new residents. In comparison to McAllen, Texas, a four-bedroom house in St. George costs approximately two-and-a-half times as much.

Gov. Spencer Cox, a Republican, aims to create 35,000 new starter homes by 2028 to tackle the housing issue.

The cost of living in 2024 is 16 out of 50 points, with the top states receiving a grade of D+.

Annual Homeowners Insurance (statewide): $1,394

Average Home Price (Salt Lake City): $642,170

Half Gallon of Milk: $4.71

Monthly Energy Bill: $173.85

9. (tie) Florida

Florida, known as the Sunshine State, is the hub of the national insurance crisis. The state is facing climate risks from intensifying hurricanes, rising construction and materials costs, and a flood of litigation, which led to the departure of dozens of insurance companies. Several others went out of business. As a result, homeowners in Florida are paying the nation's highest premiums. The state's insurance company of last resort, Citizens, has become the only option for many Floridians. The number of Citizens policyholders has doubled in just two years to more than 1.2 million, according to the insurer, which recently requested a 14% rate increase.

Gov. Ron DeSantis signed a tort reform measure last year aimed at reducing policyholder lawsuits that Citizens claims have "devastated" the private insurance industry. The goal is to attract insurers back and lower premiums.

The cost of living in 2024 is 12 out of 50 points, with the top states receiving a grade of D-.

The Consumer Price Index for the South Atlantic Division in South Region increased by 2.9% in June.

Annual Homeowners Insurance (statewide): $2,474

Average Home Price (Fort Lauderdale): $741,832

Half Gallon of Milk: $4.58

Monthly Energy Bill: $200.94

9. (tie) New York

In The Empire State, it can be extremely expensive to make ends meet, particularly in Manhattan where housing costs almost ten times as much as in Scranton, Pennsylvania. Additionally, a burger in Manhattan will set you back twice as much as one in Las Vegas.

The cost of dining out in New York City has decreased by 3.5% compared to the previous year, although it is still relatively expensive.

Although the cost of homeowners insurance is increasing, it remains cheaper than in numerous regions across the country.

The cost of living in 2024 is 12 out of 50 points, with the top states receiving a grade of D-.

The Consumer Price Index for the Middle Atlantic Division in the Northeast Region increased by 3.8% in June.

Annual Homeowners Insurance (statewide): $1,498

Average Home Price (Manhattan): $2,683,148

Half Gallon of Milk: $4.78

Monthly Energy Bill:  $193.78

9. (tie) Rhode Island

Renting a two-bedroom apartment in Providence is significantly more expensive than renting a similar place in Erie, Pennsylvania, with costs in Rhode Island potentially putting you in financial trouble. The First Street Foundation reports that 99.5% of Rhode Island is at risk of a major climate disaster, which contributes to the high cost of homeowners insurance. Last year, the National Flood Insurance Program experienced a 20% increase in claims payments.

The Consumer Price Index for the Middle Atlantic Division in the Northeast Region increased by 3.8% in June.

Annual Homeowners Insurance (statewide): $1,646

Average Home Price (Providence): $495,603

Half Gallon of Milk: $4.74

Monthly Energy Bill: $230.62

9. (tie) Washington

The quality of life in Washington is exceptional, but it comes at a high cost. Even basic necessities like a half gallon of milk are more expensive in Seattle than in Ponca City, Oklahoma. Additionally, homeowners in Washington face higher insurance premiums due to the increased risk of wildfires and Pacific Northwest storms.

The cost of living in 2024 is 12 out of 50 points, with the top states receiving a grade of D-.

The year-over-year change in the Consumer Price Index for the West Region, Pacific Division in June was 3.0%.

Annual Homeowners Insurance (statewide): $1,506

Average Home Price (Seattle): $1,014,801

Half Gallon of Milk: $5.10

Monthly Energy Bill:  $193.41

5. (tie) Colorado

In contrast to Florida, California, and Texas, which often dominate insurance crisis discussions, Colorado has the highest premiums for insuring a median-priced home.

In 2023, record-breaking catastrophes occurred, and Carole Walker of the RMIIA stated that Mother Nature is not slowing down, regardless of the name given to climate change.

According to RMIIA, Colorado has the second highest number of hail claims and the second highest wildfire risk in the country.

The Colorado FAIR Plan, which is an insurer of last resort for homeowners who can't get insurance, will begin operating next year, just like California and Florida have done.

The cost of living in 2024 is ranked at 10 out of 50 points, with the top states receiving a failing grade of F.

The Consumer Price Index for the West Region's Mountain Division increased by 2.3% in June.

Annual Homeowners Insurance (statewide): $2,650

Average Home Price (Denver): $650,770

Half Gallon of Milk: $4.74

Monthly Energy Bill: $145.02

5. (tie) Montana

Due to the Great Migration caused by the pandemic, thousands of people migrated to Montana, leading to high housing prices and a severe housing affordability crisis. In fact, according to National Association of Realtors statistics, Montana has the least affordable housing in the country. Additionally, with the increasing risks of climate-related disasters like wildfires, insurance rates are also becoming expensive.

In many states, there is a call to address the shortage of homes by promoting multi-family dwellings. However, this is sparking debate in a place that values its wide open spaces.

The cost of living in 2024 is ranked at 10 out of 50 points, with the top states receiving a failing grade of F.

The Consumer Price Index for the West Region's Mountain Division increased by 2.3% in June.

Annual Homeowners Insurance (statewide): $1,755

Average Home Price (Bozeman): $792,008

Half Gallon of Milk: $4.91

Monthly Energy Bill: $177.13

3. (tie) Hawaii

Living in paradise comes with a price. Since most items in Hawaii must be imported, the cost is reflected in the price. For example, a loaf of bread in Honolulu costs $5.34, compared to $3.66 in Fayetteville, Arkansas.

A two-bedroom apartment in the state costs around $4,000 per month, making housing unaffordable for many. A report from the University of Hawaii in May stated that only one in five households can afford to buy a single family home.

The situation has worsened due to the combination of higher interest rates and the 2023 Maui wildfires.

The cost of living in 2024 is ranked at 5 out of 50, with the top states receiving a grade of F.

The Consumer Price Index for the West Region's Pacific Division increased by 3.0% in June.

Annual Homeowners Insurance (statewide): $1,883

Average Home Price (Honolulu): $1,674,195

Half Gallon of Milk: $5.38

Monthly Energy Bill: $359.53

3. (tie) Massachusetts

Hawaii's high cost of living can be attributed to its location in the Pacific Ocean, while Massachusetts is simply expensive, with two-bedroom apartments costing around $4,000 per month and average homes going for nearly a million dollars.

A men's haircut in Shreveport, Louisiana costs twice as much as it does elsewhere, at around $43.

According to Labor Department data, the Bay State has the highest wages in the country.

The cost of living in 2024 is ranked at 5 out of 50, with the top states receiving a grade of F.

Annual Homeowners Insurance (statewide): $2,226

Average Home Price (Boston): $960,671

Half Gallon of Milk: $4.76

Monthly Energy Bill: $302.72

1. California

What makes the Golden State so expensive when it comes to the cost of living?

The state of California, with its 40 million residents, faces an insurance crisis similar to Florida's due to the high risk of damage from climate events, despite only about 60% of the population being at risk of a major disaster.

Gas prices are typically the highest in the nation, resulting from a combination of taxes and environmental mandates.

The state's housing shortage is the biggest factor contributing to high costs. Over the past decade, the California Department of Housing and Community Development estimates that the state has only added approximately 80,000 housing units per year, despite needing to construct 180,000.

Efforts to address the housing shortage include strict state mandates for local communities to increase their housing stock.

California will likely continue to be the most expensive state to reside in for the foreseeable future due to its large size and the time it takes for changes to occur.

Annual Homeowners Insurance (statewide): $2,124

Average Home Price (San Jose): $1,707,840

Half Gallon of Milk: $5.05

Monthly Energy Bill:  $294.74