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This Is the Most Expensive State in America, According to Data

Best Life Logo By Ted Lang of Best Life | Slide 1 of 51: If there ever was a time to fantasize about packing up and setting off for greener pastures, this past year has been it. In addition to showing us all how precious life is, the pandemic proved to many Americans that remote work is no longer a fringe benefit reserved only for upper management, freelancers, or tech innovators, and now the entire US of A is your oyster. But with finances also tighter than ever for many, one key factor to consider if you're looking to relocate is how much it'll cost you to live somewhere new. And for that reason, we at Best Life set out to determine the most expensive state in America—as well the cheapest.To quantify the cost of living in each state, we looked at five key metrics, which we then gave a weighted value, and applied to our exclusive algorithm to see how each state scored on our 100-point scale Expensive State Index.First, we looked at the average home value (an average of the median top-tier home value, median single-family house value, median bottom-tier home value, and median condo value), as determined by The Ascent using 2020 data from Zillow. But, as any homeowner will tell you, the cost of owning a home doesn’t stop there. The amount of property taxes that one pays can be a significant drain on their annual income, which is why we factored in the mean effective property tax rate on owner-occupied housing (total real taxes paid, divided by total home value), using the most recent data from the U.S. Census Bureau’s “American Community Survey,” and calculated by the Tax Foundation.We also looked to the Tax Foundation for the average state and local sales tax rate in each state, determined by a series of calculations to account for variances in city, county, and municipal rates. Finally, we collected and analyzed data on the average median annual household income in each state, provided by the U.S. Census Bureau, as well as the estimated living wage in each state from the Massachusetts Institute of Technology (MIT), which is the hourly rate that an individual must earn to support their household.So, before you decide to make your big move a reality, read on to discover the most expensive state in America, and to see where your current state or future one falls. And to see the area you may want to avoid for another reason, check out The Most Dangerous Small Town in America, According to Data.Read the original article on Best Life.

This Is the Most Expensive State in America, According to Data

If there ever was a time to fantasize about packing up and setting off for greener pastures, this past year has been it. In addition to showing us all how precious life is, the pandemic proved to many Americans that remote work is no longer a fringe benefit reserved only for upper management, freelancers, or tech innovators, and now the entire US of A is your oyster. But with finances also tighter than ever for many, one key factor to consider if you're looking to relocate is how much it'll cost you to live somewhere new. And for that reason, we at Best Life set out to determine the most expensive state in America—as well the cheapest.

To quantify the cost of living in each state, we looked at five key metrics, which we then gave a weighted value, and applied to our exclusive algorithm to see how each state scored on our 100-point scale Expensive State Index.

First, we looked at the average home value (an average of the median top-tier home value, median single-family house value, median bottom-tier home value, and median condo value), as determined by The Ascent using 2020 data from Zillow. But, as any homeowner will tell you, the cost of owning a home doesn’t stop there. The amount of property taxes that one pays can be a significant drain on their annual income, which is why we factored in the mean effective property tax rate on owner-occupied housing (total real taxes paid, divided by total home value), using the most recent data from the U.S. Census Bureau’s “American Community Survey,” and calculated by the Tax Foundation.

We also looked to the Tax Foundation for the average state and local sales tax rate in each state, determined by a series of calculations to account for variances in city, county, and municipal rates. Finally, we collected and analyzed data on the average median annual household income in each state, provided by the U.S. Census Bureau, as well as the estimated living wage in each state from the Massachusetts Institute of Technology (MIT), which is the hourly rate that an individual must earn to support their household.

So, before you decide to make your big move a reality, read on to discover the most expensive state in America, and to see where your current state or future one falls. And to see the area you may want to avoid for another reason, check out The Most Dangerous Small Town in America, According to Data.

Read the original article on Best Life.

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