USA Today surveyed the cost of living in each state. Criteria for the rankings were median income and five expenses: home ownership costs, groceries, health care, income tax and the cost of gasoline. The three most expensive states to live in were Hawaii, California and New York, all of which also have the highest home prices in the U.S. Arizona was the most affordable state in the Southwest to live in and ranked in third position nationwide. Coming in the first and second cheapest overall were the non-destination “cold” states of North Dakota and Ohio. Arizona’s low state income tax was a top factor in its favorable rating. My guess is what hurt the most was our traditionally higher gasoline prices.
