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.

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.

• 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  

• 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

• 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

• 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

• 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 

• 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

• 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

• 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

• 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

• 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.