10 Most Expensive States for Millennials
Though every generation has their share of economic challenges, millennials have really been through the ringer. They entered, or were about to enter, the workforce during a time of huge upheaval as the Great Recession slashed jobs across the country. Then there’s the fact that millions of millennials committed to student loan debt in order to get a college degree.
Millennials working toward reaching or maintaining financial freedom should know what places are the most expensive for them to live in. In a recent study, GOBankingRates analyzed each U.S. state to find the average monthly expenses and the highest expenditure cost for different generations. From there, the 10 most expensive states for millennial residents were found.
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The 10 states are ranked from least to most expensive in terms of cost of living for millennials, with the priciest state claiming the No. 1 spot.
Also see the living wage a millennial needs to live comfortably in America.
Colorado
Household median income: $87,598
Millennials’ average monthly expenditures cost: $3,132
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $6,177
Total cost of living annually for millennials: $74,124
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Connecticut
Household median income: $90,213
Millennials’ average monthly expenditures cost: $3,836
Highest-cost expenditure: Housing
Total cost of living monthly for millennials: $6,213
Total cost of living annually for millennials: $74,557
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New Hampshire
Household median income: $90,845
Millennials’ average monthly expenditures cost: $3,485
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $6,234
Total cost of living annually for millennials: $74,812
Rhode Island
Household median income: $81,370
Millennials’ average monthly expenditures cost: $3,735
Highest-cost expenditure: Housing
Total cost of living monthly for millennials: $6,356
Total cost of living annually for millennials: $76,276
Alaska
Household median income: $86,370
Millennials’ average monthly expenditures cost: $4,456
Highest-cost expenditure: Transportation
Total cost of living monthly for millennials: $6,504
Total cost of living annually for millennials: $78,043
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New Jersey
Household median income: $97,126
Millennials’ average monthly expenditures cost: $3,505
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $6,511
Total cost of living annually for millennials: $78,135
Washington
Household median income: $90,325
Millennials’ average monthly expenditures cost: $3,482
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $6,806
Total cost of living annually for millennials: $81,667
Massachusetts
Household median income: $96,505
Millennials’ average monthly expenditures cost: $4,400
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $7,950
Total cost of living annually for millennials: $95,400
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California
Household median income: $91,905
Millennials’ average monthly expenditures cost: $4,403
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $8,750
Total cost of living annually for millennials: $104,999
Hawaii
Household median income: $94,814
Millennials’ average monthly expenditures cost: $5,721
Highest-cost expenditure: Health
Total cost of living monthly for millennials: $11,082
Total cost of living annually for millennials: $132,989
Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average monthly expenses and the highest expenditure cost for different generations. First, GOBankingRates found information on each state, including total population, population ages 65 and over, total households and household median income, all sourced from the U.S. Census American Community Survey. The cost of living indexes for each state are sourced from Missouri Economic Research Information Center. For each cost of living index, the average expenditure cost can be calculated using the Bureau of Labor Statistics Consumer Expenditure Survey 2602 for different generations. The generations are defined as Gen Z, born in 1997 or later; millennials, born between 1981 and 1997; Gen X, born between 1965 and 1980; and baby boomers, born between 1946 and 1964. This calculation gives the average expenditure cost of living for each generation in each state. Using the average home value as sourced from Zillow Home Value Index for August 2024, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the average mortgage and expenditure costs, the total cost of living can be calculated for each state and for each generation. The highest expenditure index and average monthly cost were also shown to find the highest expenditure cost for each state. The states were sorted to show the cheapest to most expensive total cost of living. The data was collected on and is up to date as of Aug. 24, 2024.
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This article originally appeared on GOBankingRates.com: 10 Most Expensive States for Millennials