Hawaii Highest at $69;
Mississippi Lowest at $25
A family of four in California must earn at least $46 per hour to maintain a basic standard of living, according to a new nationwide cost-of-living analysis.
The study, conducted by financial platform MoneyLion, examined living costs across all 50 states using data from the 2024 Consumer Expenditure Survey. Researchers calculated the minimum “living wage” required for a household consisting of two parents and two children (with the oldest between ages 6 and 17).
The analysis combined essential expenses — including housing, groceries, utilities, health care and transportation — and divided the total annual cost by 2,080 working hours per year (40 hours per week).
California Ranks Third Nationwide
California ranked third highest in the nation. A family of four must earn $46.22 per hour, or approximately $79,367 annually after taxes, to cover basic expenses.
Housing remains the largest burden. In California, annual housing costs average $38,298, followed by $10,301 in groceries and $8,387 in health care expenses.
The findings highlight the continued pressure facing middle-income households in high-cost states, where even six-figure salaries may not stretch as far as expected.
Hawaii Tops the List
Hawaii ranked first, with a required hourly living wage of $69.43. Families there need roughly $110,782 in after-tax income to meet basic needs. Annual housing costs alone average $62,903, the highest in the country.
Massachusetts placed second, requiring $54.25 per hour and nearly $89,725 annually after taxes.
Mississippi and Oklahoma Most Affordable
At the other end of the spectrum, Mississippi and Oklahoma recorded the lowest living wage requirements.
Mississippi families need $25.35 per hour, or about $45,424 annually after taxes, while Oklahoma families require $25.65 per hour, or approximately $45,620 annually.
In fact, 13 Southern states allow families to maintain a basic standard of living with hourly wages of $30 or less.
Housing Drives the Gap
The study underscores how dramatically living costs vary by region. The difference between Hawaii and Mississippi amounts to more than $44 per hour, meaning families in the most expensive state must earn nearly three times as much as those in the least expensive state to cover essential expenses.
Researchers noted that housing costs are the single largest factor influencing a state’s living wage. In high-cost regions, even incomes traditionally considered middle class may not guarantee financial security.
As inflation pressures persist and housing affordability remains strained, the findings illustrate the growing geographic divide in what it takes to achieve basic economic stability in the United States.
