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California’s cost of living crisis laid bare in new national ranking — as state wins crown of shame
A WalletHub ranking based on local price data found that California has the lowest purchasing power in the United States. The result highlights how high everyday costs can reduce what residents get from their income, especially compared with more affordable states.
In California, $100 buys goods and services worth about $90 at the national benchmark, while in Arkansas and Mississippi it is worth $115. Oklahoma and Iowa came next at $114, and Hawaii, New Jersey, New York and Washington also ranked near the bottom. Nevada matched the benchmark at $100; the analysis drew on data from the Bureau of Economic Analysis.
In short
- California ranked last for purchasing power.
- $100 buys about $90 worth in California.
- Arkansas and Mississippi topped the ranking at $115.
Explained simply
Purchasing power measures how much people can buy with their income after differences in local prices are taken into account. The same amount of money can go further in places where housing, food and other everyday costs are lower.
California is a large, high-cost state on the US west coast. The WalletHub comparison uses local price data from the Bureau of Economic Analysis to show how far $100 goes in each state, helping readers compare the buying power residents get from their income across the country.