Housing prices have experienced consistent growth in recent years. The median home price has increased over 30% since 2020, according to Yahoo Finance. For Americans thinking about moving to a new state, housing is just one part of the puzzle to consider.
Cost of living touches many parts of life. For example, climate change is directly impacting the pricing of homeowners’ insurance policies. Some states are experiencing price hikes of at least 15% annually, according to Insurify.
Rising costs in other areas may make some locations difficult to live in, as those expenses may make it challenging to meet all of your needs. It’s important not to overlook safety when selecting a place to live, as crime may impact costs.
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Job prospects are another key factor to keep in mind when looking for a new place to live. Growth opportunities are essential when evaluating a potential relocation option, according to Indeed. Moving to a state that offers various opportunities in your field would be wiser than moving to a location that offers few prospects.
There’s no perfect place to live, but some states may make covering needs and achieving financial goals more of a reality. A recent study from the Law Offices of James Scott Farrin identifies the top ten toughest states where paychecks don’t cover everyday costs, based on average annual income, annual cost of living, unemployment rate and job growth prospects. Here are the top ten states where a paycheck doesn’t go far enough.
Vermont
- Average yearly income: $65,712
- Annual cost of living (one person): $62,260
- Unemployment rate: 2.6%
- Disposable income: $3,452
- Job growth: 2.2%
- Safety index: 67.9
Kentucky
- Average yearly income: $57,509
- Annual cost of living (one person): $44,027
- Unemployment rate: 4.9%
- Disposable income: $13,482
- Job growth: 2.2%
- Safety index: 52.7
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Rhode Island
- Average yearly income: $72,515
- Annual cost of living (one person): $61,265
- Unemployment rate: 4.8%
- Disposable income: $11,250
- Job growth: 1.9%
- Safety index: 57.5
Louisiana
- Average yearly income: $53,821
- Annual cost of living (one person): $40,749
- Unemployment rate: 4.5%
- Disposable income: $13,072
- Job growth: 1.9%
- Safety index: 33.3
New Mexico
- Average yearly income: $56,766
- Annual cost of living (one person): $41,481
- Unemployment rate: 4.2%
- Disposable income: $15,285
- Job growth: 2.6%
- Safety index: 48.0
West Virginia
- Average yearly income: $57,979
- Annual cost of living (one person): $44,637
- Unemployment rate: 3.7%
- Disposable income: $13,342
- Job growth: 0.4%
- Safety index: 49.1
Mississippi
- Average yearly income: $51,554
- Annual cost of living (one person): $42,632
- Unemployment rate: 4.0%
- Disposable income: $8,922
- Job growth: 1.5%
- Safety index: 35.1
Hawaii
- Average yearly income: $78,745
- Annual cost of living (one person): $69,434
- Unemployment rate: 2.7%
- Disposable income: $9,311
- Job growth: 4.0%
- Safety index: 60.1
Maine
- Average yearly income: $66,369
- Annual cost of living (one person): $47,321
- Unemployment rate: 3.2%
- Disposable income: $19,048
- Job growth: 2.0%
- Safety index: 64.2
Wyoming
- Average yearly income: $61,866
- Annual cost of living (one person): $47,567
- Unemployment rate: 3.3%
- Disposable income: $14,299
- Job growth: 2.1%
- Safety index: 55.9
“In states with higher crime rates, residents pay more for many things, including personal and home insurance (due to increased risks),” said James Scott Farin. “When incomes are already low, these extra safety costs take a bigger bite out of family budgets. In addition, even small incidents like theft or property damage can push people into serious money troubles when they’re already spending most of their paycheck on basics. So safer states not only protect people physically, they also help residents financially through lower rates and fewer unexpected expenses.”
The ability to safely meet your needs is a key component of deciding where to live. After all, you want to live in a place where you can achieve your goals.
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This article originally appeared on GOBankingRates.com: 10 Toughest States To Live in Where Paychecks Don’t Cover Everyday Costs
