Home sales in the US have skyrocketed during the COVID-19 pandemic – hitting a 15-year high of 6.1 million in 2021. Renters have not been spared as residential construction has become a key driver of rising US inflation.
According to the Economic Policy Institute, a nonprofit think tank, a single adult can expect to spend an estimated $11,026 on housing in 2022. However, this amount varies from country to country. In some states, housing costs are well below the national average, while in others, Americans are paying thousands more.
Using data from the EPI’s Family Budget Calculator, 24/7 Wall St. identified the states with the highest housing costs. States are ranked according to estimates of the housing and utility costs for a modest studio apartment in 2022.
Depending on the state, housing costs for a single adult range from less than $7,000 per year to well over $16,000. In general, states with higher-than-average housing costs are coastal and at least partially bordered by the Atlantic or Pacific Ocean, while states with lower-than-average housing costs are usually landlocked or located in the Deep South. These cost disparities reflect in part what residents can afford, as states with higher rental costs often also have higher-than-average household incomes, and vice versa. Here’s a look at the income needed to be middle class in each state.
In areas with high housing costs, home values tend to be higher, making home ownership unaffordable for larger segments of the population. This may explain why homeownership rates in the states with the most expensive homes are often below the national average of 64.4%. Here’s a look at mortgage rates in America every year since 1972.
Click here to view the states where singles pay the most for housing
Click here to view our detailed methodology