A housing cost sub-index above 300, the highest recorded in the Missouri Economic Research and Information Center's (MERIC) quarterly Cost of Living Index, anchors Hawaii at the top of the national affordability rankings. MERIC benchmarks each state against a score of 100, the national average, tracking six categories of household spending drawn from price data collected in participating cities and metropolitan areas. Oklahoma ranks at the opposite end as the most affordable state in the country.
Hawaii and the five most expensive states
Geographic isolation is the structural cost driver for Hawaii. Building materials and consumer goods prices both run well above what other states record, and the housing sub-index above 300 captures that in a single figure. No other state posted a comparable reading. Massachusetts ranks second, with elevated housing costs and above-average readings across multiple everyday spending categories. Alaska, California, and New York complete the top five.
Housing is the largest single differentiator across MERIC's six-category composite. Where a household is located shapes monthly budgets directly and can drive longer-term decisions about where to live.
Oklahoma heads the most affordable states
Oklahoma tops the affordability list. Alabama, Mississippi, Kansas, and West Virginia follow in order. Four of the five are Southern states; Kansas is the group's only Midwestern representative. Each benefits from substantially lower housing costs and generally low readings on transportation, utility, and everyday expenses, keeping composite scores well below the 100 benchmark. The South dominates the affordable tier by count.
Migration data and the 2026 midterm backdrop
IRS data show that New York and California, two of the five most expensive states in MERIC's current data, have recorded significant outflows of taxpayers and taxable income to other parts of the country in recent years. Those flows track with the affordability rankings. MERIC's analysis notes the data offer a broader look at how affordability and population shifts are unfolding across the nation.
Housing costs and inflation are expected to rank among top voter concerns ahead of the November 2026 midterm elections. MERIC produces the Cost of Living Index quarterly. Hawaii's housing sub-index above 300 is the dataset's single most extreme reading.