California has topped the list of the most expensive states to live in the U.S. in 2026 due to record real estate prices and an insurance crisis, according to CNBC. Other states in the top ten for the highest cost of living include Colorado, Florida, South Carolina, Rhode Island, Oregon, Connecticut, Washington, New York, and Illinois.
Approximately 40% of California's population spends more than 30% of their income on housing costs, and insurance premiums have risen by 84% since 2020. In Manhattan, New York, the average price of an apartment has reached $2.9 million, while monthly rent approaches $6,000. In Florida and Colorado, the cost of property insurance has sharply increased due to climate risks, while the Hawaiian Islands have recorded the highest prices for essential food and fuel.
Earlier, Federal Reserve Chair Kevin Warsh noted that inflation inflicts the greatest damage on the lowest-income segments of the population, calling it the "most regressive tax".
Against the backdrop of the highest inflation rates in the past three years, the high cost of living is becoming a key factor for businesses, as companies are forced to raise wages to attract and retain employees.
