MERIC Ranks Hawaii Most Expensive State and Oklahoma Cheapest in 2026 Cost Index
Updated
Updated · Fox News · Jul 17
MERIC Ranks Hawaii Most Expensive State and Oklahoma Cheapest in 2026 Cost Index
3 articles · Updated · Fox News · Jul 17
Summary
Hawaii led MERIC’s latest state cost-of-living index, with a housing score above 300 helping make it the nation’s most expensive place to live, while Oklahoma ranked as the most affordable.
Housing drove the widest gaps between states, with Hawaii’s isolation lifting prices for building materials and consumer goods and pushing overall costs far above the national benchmark of 100.
Massachusetts ranked second, followed by Alaska, California and New York; Alabama, Mississippi, Kansas and West Virginia joined Oklahoma among the five cheapest states, with the South dominating the low-cost group.
Lower-cost states generally paired cheaper housing with lower transportation, utility and other daily expenses, a pattern homebuilders say has helped the South attract housing growth.
The rankings also track with IRS migration data showing taxpayer and income losses from high-cost states such as New York and California, underscoring affordability’s growing political and economic weight before the 2026 midterms.
As high-earners flee expensive states, what is the long-term economic future for places like California and New York?
Is moving to an 'affordable' state like Oklahoma worth the trade-off in public services and quality of life?
With its new housing law underfunded, how can America realistically solve its critical 4.7 million home shortage?
America’s Cost of Living Divide in 2026: Hawaii’s Highs vs. Oklahoma’s Lows
Overview
The 2026 Cost of Living Landscape highlights a major gap between states, with Hawaii ranked as the most expensive and Oklahoma as the cheapest. This ranking is based on the latest Cost of Living Index, updated in July 2026. Hawaii’s high expenses are driven in part by property tax rates, where a $1,000,000 home incurs $3,500 in annual taxes, and a $500,000 home pays $1,750. These property taxes add to the overall cost of living, making Hawaii less affordable. In contrast, Oklahoma stands out for its low costs, offering residents greater affordability and purchasing power.