Top 5 U.S. States with Highest Living Costs in 2025 Including Insurance Impact

A CNBC study highlights the five most expensive U.S. states to live in for 2025, emphasizing persistent inflationary pressures despite overall national trends. California leads due to high home insurance premiums driven by wildfire risks and a median home price above $900,000. Oregon, Florida, Hawaii, and Colorado follow, with factors such as elevated housing costs, grocery prices, and catastrophic risk contributing to increased living expenses.

Florida's homeowners insurance market faces challenges from frequent hurricanes, elevating costs significantly. Hawaii's isolated geography inflates prices for goods and services, although insurance issues are less pronounced. Oregon experiences notable grocery inflation and housing affordability challenges, accentuating regional disparities.

This study underscores ongoing inflation-driven cost escalations in housing, insurance, and daily expenses within specific states, shaping market and regulatory considerations for insurance professionals focused on risk assessment, pricing, and policy development.