New York Among Most Expensive States Due to High Health Care, Utility Costs

It's no secret New York is an expensive state and that is forcing some residents to move on to greener, and cheaper, pastures.

Inflation reached a 40-year-high in 2022 and wages are struggling to keep pace. According to recent Census data, American incomes have fallen by nearly 5% since 2019.

Americans are getting less bang for their buck because of soaring price hikes in necessities like food, utilities, and rent. Costs can be more manageable depending on the state.

New York consistently tops national rankings of the most expensive states, so it's no surprise that a new study looking into the states where residents spend the most on mandatory expenses.

Most Expensive States in America

A new study by QR Code Generator used data from the U.S. Bureau of Economic Analysis to determine what residents lose the most money to personal consumption expenditures, like mortgages and healthcare costs.

Massachusetts topped the list with residents paying $64,214 per capita, with the most expensive expenses being housing and utilities. It's estimated residents pay $11,315 a year on them. Health care costs were no bargain, either, with the study finding residents forking over $10,491 annually to see a doctor.

The top 3 consisted of New England states, with New Hampshire and Connecticut coming in second and third place, respectively.

California took a bite out of the top 5 with a fourth place finish, while New Jersey placed fifth overall, with residents there spending an estimated $60,082 a year on mandatory expenses like food and transportation.

While New York failed to snag a slot on the upper half of the roundup, an 8th place finish was no bargain.

New York's Rent and Insurance Rates Among Worst in America

It's estimated that New Yorkers spend a whopping $58,571 on personal expenditures. The most expensive categories was insurance premiums and food.

Residents spend $4,476 per capita on insurance and financial services a year. When it comes to food services and accommodations, New Yorkers cough up $4,136 a year.

Interestingly, QR Code Generator thinks this is actually good news for the Empire State.  A spokesperson said:

It’s interesting to see that six out of the top ten states find themselves on the East Coast, indicating that there’s less disposable income the further West you travel.  However, it’s no surprise that California and New York have made the ranking, as these two areas draw in wealthy people from afar.

However, those having to pay up would disagree that this is a sign of disposable income since a majority of these charges are not optional.

Financial Crisis Looming?

Of course, this study is adding more fuel to the fire that we could see another financial recession in the coming months. With expected price hikes in energy costs and at the grocery store, Americans are finding themselves more strapped for cash.

According to Newsweek, a "delayed" recession warning was issued Monday for the American economy. The warning came from Gary Shilling, the financial analyst who correctly predicted the 2007-2008 recession.

He said our market is now showing weakness, which means it's slowing down and offsetting any positive trends that could bolster the economy - like gains in wages and consumer demand.

As for when we could see another financial crisis, Shilling provided some optimism that it could potentially be offset if the country continues to make gains in employment. He did warn that a sign the economy is going in the wrong direction is more mom and pop stores closing up shop.

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Small businesses, he said, are like the canary in the coal mine - or the "normal harbingers of recessions." Warning signs include struggling to maintain their hours of operation or employees.

Do you think the American economy is in dire straights? Sound off in the comments below.