Just as each state in the United States has its own unique identity and culture, the cost of living also varies.

For example, life in Hawaii is expensive because the country is relatively small and therefore has limited housing. Also, because it is an island group, many everyday items must be imported from elsewhere. In addition, competition for retailers is limited, which motivates them to lower prices.

As a result, $1,000 won’t get you very far in Hawaii; according to a nationwide price comparison by the U.S. Bureau of Economic Analysis, that amount can only buy goods and services worth about $892 in the Aloha State.

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Things are even worse in California and Washington, DC, where $1,000 is worth only about $875 and $872, respectively, according to BEA. One reason for this is the notoriously high cost of many necessities, including rent and groceries.

Here is the relative value of $1,000 in all 50 states and the District of Columbia:

The analysis does not take into account factors such as income taxes, which in some states could further reduce the purchasing power of each dollar earned.

While the BEA’s price parity analysis covers all consumer goods, it shows that higher regional prices are typically associated with higher local rents.

That explains why your purchasing power drops in states like Hawaii and California. According to RentCafe, average rents in Hawaii and California were both above $2,500 per month in March 2024. Only two states had higher average rent prices: New York and Massachusetts.

Hawaii residents also struggle with high food costs. According to a 2023 Census Bureau household survey, households there spend an average of $334 per week on food at home, more than in any other state.

The Bureau’s figures are similar: In Alaska, residents spend an average of $329 per week on food, while in California, the average is $298.

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