Why California Is The Most Expensive State In The Country

The past year has been hard for most Americans on multiple levels, but especially on a financial level.

With the pandemic shutting down industries and companies laying off and furloughing employees, unemployment rates hit an all-time high throughout the spring and summer of 2020.

As lives were turned upside down, many have or are currently looking to relocate. That's why Best Life decided to determine the most expensive and the cheapest states in America.

To determine the cost of living in every state, Best Life researchers looked at five key metrics: average home value, average property tax rate, average state and local sales tax rate, estimated hourly living wage, and annual median household income.

Based on their findings these are the top 10 most expensive states to live in:

1. California
2. Washington
3. Hawaii
4. New Jersey
5. Massachusetts
6. New York
7. Colorado
8. Illinois
9. Maryland
10. Utah

It comes as no surprise to most Americans that California is at the top of this list. But why exactly is it so expensive to live in the Golden State?

"Having such a strong economy means that the state attracts a lot of skilled workers in search of a high salary," explains CaliforniaBeat.org. "That creates a huge demand in the housing market..."

According to Best Life's data, the average home value in California is $579,332, the estimated hourly living wage is $40.83, and the annual median household income is $80,440.

You can see where the other 50 states rank here.

Photo: Getty Images