The Cost Of The Big Three Expenses By State
One of the key rules for smart money management is to focus on the “big three”. What are the big three?
For the vast majority of households the three biggest expenses are housing, transportation, and food.
If you save the maximum on those three things, you can really accelerate your net worth and in turn your path to financial independence. And optimizing those big ticket items also allows you to not sweat the petty stuff, at least as much. Go ahead, have your latte.
If you’re a regular reader you’ve seen some of my posts that map data of various financial measures by state. I’ve covered debt, housing, car ownership, and the cost of public schools among other things.
In this post I’m going to break down the cost of the big three by state. After looking at my data sources and how to best depict the analysis, I decided to break things down to monthly costs since that’s a common metric that many or perhaps most use to track expenses.
*Washington D.C will not be included in completion due to data unavailability
Housing
For the monthly costs that go toward housing, the Census Bureau publishes data from the American Community Survey. The median home ownership costs include monthly mortgage payments, real estate taxes, insurance, and utilities. These data do not include the down payment required to buy a home.
The data are from 2015 which are the most recent available and I pulled them from this site since working with government sites can be clunky and frustrating. Into the mapping machine the data went, and with a nice Accidental FIRE color scheme here are the results:
Realizing that everyone does not own a house, I’m including rental data in this analysis. The best source for that is Apartment List since they take the same Census Data from the American Community Survey and use a pretty sophisticated methodology to extrapolate it forward.
They have data for 1 and 2 bedroom rentals by state, and update it every month. I pulled the data in April 2018, so the numbers you see here will be a tad lower than what’s on their site currently.
The data include the costs of monthly rent and utilities for all kinds of rental properties. For simplicity sake, I averaged the 1 and 2 bedroom rates together for each state to get one cost.
And the map:
Transportation
To get the vehicle costs, I used my previous post with data aggregated for three years. The reason the data was aggregated is due to the fact that many states have one-time up-front costs when purchasing a vehicle, while others don’t.
So just using the cost to operate an existing vehicle every year is not the whole picture. But I realize many or most people would transfer an existing vehicle to a new state if they moved.
I also realize this is a bit inconsistent with the house data as I did not include the associated costs of buying a house.
But the only data I could find showing the cost of solely operating an existing vehicle annually was from 2014 and out of date, so I chose the more recent data that includes purchasing price and averages over three years.
My blog, my rules. I’m just doing the best I can with what I have available:)
So here are the data from that post, broken down to a monthly cost:
Food
I pulled annual food expenditure data by state from Maptitude, which uses the same American Community Survey Census data. Check out their site, good stuff for geography geeks everywhere.
I took the annual food expenditure data and did some super complex analysis – I divided it by 12 🙂
And the results:
Let’s Do Some Sums
Okay, if you’re still tracking we now have two flavors of monthly housing costs (own and rent), monthly car ownership costs, and monthly food costs. All by state.
That’s the big three. So let’s do some arithmetic and take this puppy home. First is the map showing the monthly sum of the cost of owning a house, transportation, and food:
The most expensive 5:
| New Jersey | $3,399.31 |
| Hawaii | $3,253.27 |
| California | $3,171.02 |
| Massachusetts | $3,044.94 |
| Connecticut | $3,026.18 |
The least expensive 5:
| West Virginia | $1,843.35 |
| Arkansas | $1,888.70 |
| Mississippi | $1,920.01 |
| Kentucky | $1,965.83 |
| Alabama | $1,977.73 |
The difference between the cheapest (West Virginia) and the most expensive (New Jersey) is $1,556 per month.
And Switching the first variable from home ownership to rent yields some different results:
The most expensive 5:
| Hawaii | $2,715.27 |
| California | $2,678.02 |
| Massachusetts | $2,421.94 |
| New Jersey | $2,420.31 |
| Maryland | $2,394.80 |
The least expensive 5:
| Arkansas | $1,504.70 |
| South Dakota | $1,526.21 |
| West Virginia | $1,536.35 |
| Kentucky | $1,561.83 |
| Mississippi | $1,562.01 |
The difference between the cheapest (Arkansas) and the most expensive (Hawaii) is $1,211 per month.
Conclusion
Where you live obviously matters, and when it comes to the “big three” expenses it varies quite a bit. I hope this analysis can provide you a decent baseline understanding of how much the big three will cost in each state.
Of course you should do further research if you’re considering a geoarbitrage move to save money. That research should include the income side of things among other variables, and I did a post on that highlighting a great tool to help you work those numbers out too.
Also be sure to check out my Geoarbitrage Resources Page that has tons of great tools to help you find your perfect location.
You have certainly found your niche! I love these maps and the information contained within. So fun to look at think about.
Thanks for putting this all together.
TPP
Thanks Doc!
Focusing on the big three is huge. It’s a shame you don’t habe data for DC 😉
Love the graphs. Keep it up
I looked everywhere for the DC data but no-go. I do have DC included in other mappy posts. Thanks man!
What a great idea for an article. This provides myself and everyone else in the FIRE community some visual, concrete information about living costs in our area of residence. I was surprised that my state Texas is a little higher than I originally thought. There are several states I was not at all surprised. Mississippi and Louisiana in the Deep South are inexpensive, whereas the Northeast and west coast are very expensive.
Here’s an idea for your next topic; the same maps as here, but do a comparison of ACA healthcare costs state-by-state. That would be the one missing piece to this puzzle.
Great article all-in-all.
I did find some ACA data but haven’t had chance to do anything with it yet. On my list. I need a staff 🙂
Loved all that data. Maybe we will move to Maine once my son’s schooling is over… Not the best, but definitely really better than where we are now.
I LOVE Maine! So beautiful!
You know I think I’m going to move to Idaho. 🙂 No surprises really. Well, actually one. Michigan seemed quite expensive for rental costs even though typically it’ a very, very cheap place to live. Wonder why?
Ha, perfect timing. Not sure about Michigan, hopefully one of those bloggers will chime in
Interesting stuff. As I explore remote work from home side hustles it occurs to me that it is just as easy to work in a cheap state as it is to work in an expensive one. I love these maps – keep them coming!
The internet is the great equalizer. Thanks!
I would think British Columbia is somewhere between Washington and California with Vancouver shooting costs through the roof like San Fransisco to the south. Some serious number crunching you did there, what a great data analysis.
Thanks for the kudos Chris!
Great data and images. Really nice job.
Portland is pretty expensive, but it’s still cheaper than California and WA.
We don’t know where we’d rather move, though. Families are in CA so we don’t want to be too far away.
Well, Cali is not a good option money-wise, but it is beautiful!
Chicago is pretty expensive. Though my original outlays for housing and transportation were high, They are much better now.
You’ve already mastered the game 🙂
we must be an outlier. we were less than 1200 in ny back when we had our mortgage. i’ve said it a hundred times: if we could figure out where else we would rather be would would be there now and saving a bundle.
“freddy the outlier”, I like that 🙂
Its’ amazing how different prices can be across the country. We’re in Ohio so costs aren’t too shabby. The fun would be getting a high-paying job and working in a low-cost state – that would help pave the way to FI much more efficiently!
— Jim
And the internet makes that possible, that is the master lifehack Jim!
My Big Three are:
(1) Childcare
(2) Housing
(3) Savings
Food and transportation are pretty much neck and neck for 4th place.
If you consider savings a ‘cost’, then it should definitely be up there. For us FI folks it’s usually #1. But the big three as I have them is what most data, polls, and surveys show to be the most expensive costs.
Absolutely love how you do these visual representations for us. Really drives home the benefit of geoarbitrage. I am very fortunate (through no planning of my own) to be in pretty much the best or 2nd best color choice for all 3 categories so I know geoarbitrage had a considerable effect on my path to FI.
You scored, very nice!!! Thanks for the kudos!
I would lke to see a composite of the big four, with the fourth item being taxes.
Phew, taxes get tough because it’s dependent on salary of course and then most states have different county taxes etc. Doing just state taxes using the state median incomes is doable.
This is exactly what i was thinking! I would love to see the overlay of state income taxes.
Would love to see where DC fits in there! Can’t imagine it would fare very well. Need to get me to one of those cheaper states!
No, DC wuuld not fare well. Especially on rent costs.
These maps are excellent. I enjoy looking at these maps from the point of view of our trailer trips. These types of numbers show us generally how expensive it might be to stay in another state as we travel. Eventually, we might move out of CA as we hit 70 and have to start RMDs, so we are always on the look out for ideas. Thanks!
Yes, you told me a while back the extra benefit to the mobile/RV/vanlife folks, and that’s another reason I want to keep doing them. I have more data than I can analyze at this point!
Okay, so it is undeniable that housing and land is more expensive in places like the West Coast (especially California and Hawaii), and the northeast. This is likely due to limited space/land for the high demand of people wanting to live in these regions.
And I understand that food is more expensive in Hawaii and Alaska due to the remoteness of such places.
But I don’t see why food in California is more expensive than places like Mississippi when much of the food is grown locally in California.
It is possible that places like California (and other places like Minnesota) are more health conscious and willing to spend more for better food.
Ha, Tanja from OurNextLife did a post recently and said the same thing. She lives in North Tahoe and said how outrageous the food is. But it is weird,California grows everything, and lots of it!
The big 3 is so key to achieving FI or just getting into a good position to be able to do basic investing. This is probably the biggest piece of advice I will have for my kids. Focus on control expenses on the big 3 and you will far ahead of your peers!
You are setting your kids up for success!
Great maps and research, I had considered moving to one of the low cost of living states you brought out at FIRE as I now live in one of the top 5 highest. However in my research I found that that if I moved the cost of healthcare (non-employer) if I chose to retire early would negate almost all the savings I might have found . I have a post on the cost’s and competition of healthcare providers across states on my blog. The only viable one on paper I might consider is Arkansas.
Yep, the craziness of healthcare in America always throws a ratchet into these plans. I’m with you, healthcare costs factor into all of my decisions and often make logical and seemingly easy decisions not necessarily so.
Dang, I thought we had it pretty good cost-of-living-wise here in Indiana, but West Virginia and Arkansas have it even better!
That’s the nice thing about working online, you can live in one of these cozy low-cost Midwest states without having to worry about it affecting your job or whatever. Or I guess if you’re feeling adventurous you can move overseas to Thailandor whatever like a lot of people do but I’m definitely gonna have to stick with the states even if it’s more expensive.
And West VA is a beautiful state with tons of outdoor activities. It’s high on my list!
Don’t forget taxes. That can be a deal changer for any budget depending on which state you live in.
The people who work remotely and left a job in a high cost state are the ones that are better off financially. But of course the key is quality of life. Definitely like the maps!!
Taxes are a huge factor but I guess most people don’t consider them an “expense” that you have to pay since for most they’re automatically taken out of your paycheck. And for most the government takes too much on purpose and takes an interest free loan, which is sad.
So yes I agree they’re a big cost, but with housing/cars/food you have to pay those bills after your net take home paycheck is cashed.
Thanks for the kudos!
Very helpful! Thanks for pulling these together. Especially the combined one. Time to start plotting where to relocate when it comes time for FI because NYC will definitely eat up our funds.
Cool, glad you liked it!
It is wonderful to see this information all laid out in a map of the US, very nicely done! Thank you so much for taking the time to create these visual tools!
I’m learning about the many factors to consider when choosing the ideal retirement spot. Another consideration – property taxes, sales taxes, etc. WA has a HCOL, but no state income tax. Live in WA close enough to OR and pay no sales tax by shopping in OR. I’m in CA now, so rent in WA won’t be than much better. South Dakota is looking better & better! Along with a lower cost of living & no state income tax, it also has a lower sales tax (but does include food in sales taxes, which many states don’t). I found this post on sales tax by state: https://www.thebalance.com/states-without-a-sales-tax-3193305
Glad you liked it! And thanks for that link, I have some sales tax information and have been trying to think up a post to do on it, much appreciated!
Do you suppose you could share the spreadsheet with your Big 3 sums? I’d love to add in potential salaries and compare the ratios of expense to income.
I got the same feedback/requests from reddit and I have plans to add/update the post. Feel free to copy the numbers off
Any updates on this? Current information?
Making those custom mapping posts takes an insane amount of work and the juice just isn’t worth the squeeze any more for my dying blog. With AI getting the data is easy though, I recommend Grok as it’s getting scary good. I just got this in about 30 seconds on the median monthly costs of homeownership which was my first map in that post. I asked it “provide and rank the median monthly homeownership expenses by state for 2025 for all 50 states”
Answer:
Methodology
Primary Source: Bankrate’s 2025 study provides average annual hidden homeownership costs for 49 states (excluding New York). These include:Property taxes
Homeowners insurance
Utilities (electricity, gas, water, sewer, waste/recycling)
Internet and cable bills
Maintenance (estimated at 2% of the state’s median single-family home price)
Conversion: Annual costs are divided by 12 to estimate monthly costs.
New York Estimate: Since Bankrate excludes New York, I’ll estimate its costs using 2017 Census data adjusted for inflation and trends from other high-cost states.
Ranking: States are ranked from highest to lowest based on estimated monthly hidden costs. Where mortgage-inclusive data is needed, I’ll note the limitation and provide context.
Limitations: Mortgage payments, a significant portion of homeownership costs, vary by home price and interest rates, which are not uniformly available for 2025.
The 2017 Census data is outdated but provides a baseline for total costs (including mortgages).
Inflation adjustments are approximate, using a 26% increase in hidden costs from 2021 to 2025 as noted by Bankrate.
Data gaps are filled with reasonable estimates based on regional trends and home price data.
Estimated Median Monthly Hidden Homeownership Costs by State (2025)Below is the ranking of all 50 states based on Bankrate’s annual hidden costs (converted to monthly) from the 2025 study, with New York estimated. Costs reflect property taxes, insurance, utilities, internet/cable, and maintenance, but exclude mortgage payments unless noted.Rank
State
Monthly Hidden Costs (USD)
Notes
1
Hawaii
2,418
Highest maintenance ($19,642/year) due to high home prices ($730,511).
2
California
2,258
High maintenance ($14,254/year) and property taxes.
3
Massachusetts
2,172
High property taxes and maintenance costs.
4
Washington
1,940
Third-highest maintenance ($13,166/year), high internet/cable.
5
Colorado
1,908
High maintenance due to median home price ($553,273).
6
New Jersey
1,885
High property taxes ($9,346/year).
7
Maryland
1,827
High median income and home prices drive costs.
8
Connecticut
1,824
High property taxes and insurance.
9
Oregon
1,790
Median home price ($502,215) increases maintenance.
10
New York
~1,780
Estimated: 2017 Census ($1,410) + 26% inflation + high home prices.
11
Utah
1,771
Rising home prices contribute to maintenance costs.
12
New Hampshire
1,769
High property taxes despite low home vacancy.
13
Nevada
1,762
High insurance and utilities in desert climate.
14
Rhode Island
1,750
High coastal property costs.
15
Virginia
1,732
Moderate home prices, high taxes.
16
Arizona
1,693
Rising home prices and utility costs.
17
Idaho
1,668
Housing boom increases maintenance ($466,435 median home).
18
Florida
1,657
High insurance due to hurricane risk.
19
Illinois
1,641
High property taxes in urban areas.
20
Delaware
1,612
Low property taxes (0.55%) but rising home prices.
21
Vermont
1,608
High taxes and rural maintenance costs.
22
Minnesota
1,595
Moderate home prices, high utilities in cold climate.
23
Montana
1,580
Rising home prices due to migration.
24
Maine
1,553
Highest homeownership rate (74.4%), moderate costs.
25
Texas
1,548
Moderate taxes, high insurance in hurricane-prone areas.
26
Pennsylvania
1,540
Stable costs, moderate home prices.
27
Georgia
1,536
Growing urban areas increase costs.
28
Wisconsin
1,526
Moderate taxes and utilities.
29
North Carolina
1,510
Affordable but rising home prices.
30
Michigan
1,496
Low home prices, moderate taxes.
31
South Carolina
1,485
Low taxes, affordable homes.
32
Tennessee
1,482
Low cost of living, rising home prices.
33
New Mexico
1,475
Low home prices, moderate utilities.
34
Alaska
1,470
High utilities due to climate, moderate home prices.
35
Nebraska
1,464
Low home prices, stable costs.
36
Ohio
1,458
Affordable homes, moderate taxes.
37
Indiana
1,454
Low cost of living, affordable homes.
38
Iowa
1,451
Low home prices, stable utilities.
39
North Dakota
1,448
Low population density, moderate costs.
40
South Dakota
1,444
High vacancy rate, low home prices.
41
Missouri
1,440
Low utilities ($3,811/year) and maintenance ($5,272/year).
42
Louisiana
1,436
Low home prices, high insurance due to hurricanes.
43
Oklahoma
1,432
Low cost of living, affordable homes.
44
Alabama
1,428
Low home prices ($176,898), high poverty rate.
45
Kansas
1,426
Second-lowest cost of living, low home prices ($176,898).
46
Mississippi
1,422
Lowest median income, low home prices.
47
West Virginia
1,418
Lowest home prices ($170,514), highest homeownership (79.6%).
48
Arkansas
1,416
Low property taxes ($1,445/year), low maintenance ($5,126/year).
49
Wyoming
1,414
Low population density, moderate costs.
50
Kentucky
1,383
Lowest hidden costs ($11,559/year), affordable homes.
Notes and ContextNational Average: Bankrate estimates average annual hidden costs at $21,400 in 2025, or ~$1,783/month.
Mortgage Inclusion: Total homeownership costs (including mortgages) are higher. For example, 2017 Census data showed Washington, D.C. at $2,432/month and West Virginia at $984/month, including mortgages. Adjusted for 26% inflation to 2025, these could be ~$3,064 and ~$1,240, respectively.
Regional Trends: Coastal states (Hawaii, California, Massachusetts, New Jersey) have the highest costs due to elevated home prices driving maintenance and taxes. Appalachian and Southern states (Kentucky, West Virginia, Arkansas) are cheapest due to low home prices and taxes.
New York Estimate: Lacking 2025 Bankrate data, New York’s costs are estimated using 2017 Census data ($1,410/month) adjusted for inflation and aligned with high-cost states like New Jersey and Connecticut.
Mortgage Impact: Median home prices in 2025 (e.g., $410,800 nationally, $977,538 in Hawaii, $170,514 in West Virginia) significantly affect total costs when mortgages are included. A 30-year mortgage at 6.89% (May 2025 rate) for a median home adds ~$1,800–$4,300/month depending on the state.
Data Gaps: No single 2025 source provides total median monthly costs (including mortgages) for all states. Bankrate’s hidden costs are the most current and consistent metric available.
Additional ContextHome Prices: Median home prices in 2025 range from $977,538 (Hawaii) to $170,514 (West Virginia), directly impacting maintenance costs (2% of home value).
Interest Rates: Mortgage rates dropped to 6.89% by May 2025, reducing monthly payments slightly compared to 2024’s 7.03%.
Affordability: States with high hidden costs (e.g., Hawaii, California) have lower homeownership rates (59% and 54.2%, respectively), while affordable states like West Virginia (79.6%) have higher rates.
RecommendationsFor precise total costs (including mortgages), you’d need to:Check state-specific median home prices and apply 2025 mortgage rates (~6.89%).
Add hidden costs from Bankrate’s study (as listed above).
Consult local real estate data or tools like NAR’s county-level home price calculator for mortgage estimates.
If you want a breakdown including estimated mortgage payments for specific states or a focus on certain cost components (e.g., taxes, insurance), let me know, and I can refine the analysis!
thanks!!!
Wow!!! AI just killed your blog if you want this type of information!!!!
Ai is killing a lot of things, the world is changing fast