These are the most expensive states in the U.S. in 2025: Find out if Florida is on the list

Although general inflation in the United States has decreased significantly from its peak following the COVID-19 pandemic, the cost of living remains high in many parts of the country, with marked differences between states.

This presents a challenge for both citizens and companies looking to attract talent in economically sustainable places.

For this reason, the cost of living is one of the ten key criteria in the annual ranking by the economic channel CNBC on the best states for doing business.

In the 2025 edition, the cost of living accounted for 2.4% of the total score and was assessed using data from the Council for Community and Economic Research (C2ER).

This index includes the average prices of goods and services, housing affordability, and the cost of homeowners' insurance, which is particularly relevant in light of the current insurance crisis the country is experiencing.

While some states are experiencing moderate inflation, others continue to register high price levels that directly impact their residents.

California: the most expensive of them all

According to the report, California is the most expensive state to live in 2025. It scored only 6 out of 60 possible points in the cost of living category, equivalent to an F grade.

In this state, nearly 40% of residents spend more than a third of their income on housing, the highest percentage in the country. In San José, the average price of a home is $1.86 million, and in Orange County, it stands at $1.48 million.

The situation has worsened following the wildfires in Southern California in January, which led to a significant increase in insurance premiums.

The insurance company State Farm has received approval to increase its rates by 17%, but it is still seeking an additional 13% increase. The average annual cost of homeowners insurance in California now reaches $2,930.

Other basic expenses are also significantly high: a dozen eggs costs an average of $2.96, and the monthly energy bill exceeds $250.56.

Florida, in third place: high prices and insurance crisis

Despite its sunny image, Florida ranks third among the most expensive states to live in by 2025, primarily affected by a severe homeowners’ insurance crisis and an increasingly unaffordable real estate market.

The combination of increasingly frequent storms and a legal system that has restricted the ability to sue insurance companies has led to what experts describe as the worst insurance crisis in the country.

Although Governor Ron DeSantis implemented reforms in 2022 and 2023 that, according to him, have begun to stabilize the market, Floridians continue to pay the highest premiums in the country.

The annual homeowners insurance averages $15,460, and the average price of a house in Miami-Dade County is already at $711,025.

More than 36% of residents allocate over one third of their income to housing costs, a proportion that is only surpassed by Hawaii and California.

Other basic costs are also high: a dozen eggs costs $3.77 and the monthly energy bill exceeds $220.

Florida received an F rating with 10 out of 60 possible points in the cost of living category, and a regional Consumer Price Index (CPI) of +2% in May.

The territory does not stand out as one of the happiest in the country, although it does manage to rank among the top 20.

An analysis published in June by Florida Politics, based on a study by the firm Topture that evaluated 21 indicators of well-being, ranked the state 17th in the national happiness ranking.

The survey reminds us that happiness depends not only on personal aspects but also on social, economic, and environmental factors, many of which are shaped by public policies.

"States that invest in public health, economic equity, and environmental resilience are experiencing genuine emotional and social benefits," noted Jamie Lantz, senior analyst at Topture.

List of the 12 most expensive states in 2025

In addition to California, the ranking prepared by CNBC reveals that other states are also facing high living costs, placing among the top positions on the national list:

California

Hawaii

Florida

Colorado

Oregon

New York

Massachusetts

Maryland

Washington

Texas

Luisiana

Arizona

Each of these states exhibits a combination of high prices for housing, essential goods, and insurance, making them the most expensive places to live in the United States in 2025.

Economic and Business Impact

For companies looking to expand or relocate, the cost of living in a state has become a decisive factor when assessing their competitiveness. An environment with unaffordable prices can hinder talent attraction and increase operational costs.

While the Federal Reserve continues to monitor inflationary behavior and debates the impact of new tariffs on the economy, the report from CNBC makes it clear that post-pandemic inflation still leaves a mark in several regions of the country, and living in certain states remains a luxury that many cannot afford.

Frequently Asked Questions about the Cost of Living in the United States in 2025