Living in the United States is a dream of millions of people worldwide. However many of those individuals don't actually consider the cost of living in the USA. The cost of living in the United States varies widely between geographical areas, states and even cities. Although everybody's basic expenses can be different, looking at the average cost of living between various areas can be a good indicator of how much one would expect to pay for the basic necessities such as food, shelter and clothing. Many also prefer a certain vibe or way of life. For instance, those who like the hustle and bustle might pick a city like New York. While those who love a slower place might pick a metropolitan city in the south, like Atlanta. Inflation is a major component of the cost of living. However, there are also other variables which can also have an impact, such as environmental or governmental factors, which can affect the well-being of the average consumer. The Consumer Price Index (CPI) is also frequently utilized in cost of living USA calculations, especially in urban areas. Specific factors that affect an area's cost of living include the cost of housing, the average median income, the employment rate, and the cost of products and services.

In general, Hawaii and the West Coast state of California are considered to be among the most expensive areas to live in the United States. During the first quarter of 2010, these two states were basically tied for first place for the highest cost of living. The real estate prices in Hawaii, especially in Honolulu, are among the highest in the nation. However, Hawaii is also ranked first in overall quality of living and is home to some of the healthiest people in the United States. In some areas of California, the cost of living is almost double the United States average. For example, in December 2009, the cost of living index for Los Gatos was 190.2, as compared to a national average of 100. For the same time period, Los Angeles was 166.4, Laguna Beach was 178.9, and Long Beach was 160.4. However, the state of California also has some of the cities with the highest level of job earnings, with San Jose tied with Stamford, Connecticut, while San Francisco falls within the top five. California and Hawaii are ranked at 31 and 38, respectively, in terms of education. California is ranked first in the nation in regards to technology, making it a great location for those working in the field of computers and technology. California and Hawaii also have good educational facilities. The job market in Hawaii is better than the national average. However, according to the 2008 Gallup Poll surveys, California had one of the worst job markets in the nation for that time period, and the job market is still challenging. Of course, the beautiful climate of the West Coast and Hawaii provide ample recreational opportunities, which factors into the high rating for overall quality of life.

Many of the southern states are among those reporting the lowest cost of living USA rankings. Oklahoma and Tennessee were tied in the first quarter of 2010 for the lowest cost of living, followed by Arkansas and Kentucky, who were tied for third place. However, the overall quality of life for these states is also ranked among those which are lowest in the nation, with Tennessee ranked at 49, Kentucky at 46, Arkansas at 43 and Oklahoma at 41 as compared to all fifty states. Louisiana, another southern state, was ranked at 50, making it the state with the lowest overall quality of living, with Alabama ranked at 48. Housing is less expensive in the southern states, which definitely factors into the low cost of living. The job market in the southern states varies according to the region, with good job offerings in some of the larger cities. However, in some areas of the southern states, the unemployment rate is higher than the national average. There are also not as many recreational options in these states, which factors into the low quality of living scores.

The New England states of Vermont, New Hampshire, Maine, Massachusetts, and Connecticut are also ranked high in regards to overall quality of life. The cost of living is also above average in these states, along with the cost of housing. However, the educational facilities in these states are ranked among the best in the nation. The economy in these states is also ranked above average as compared to the rest of the United States. On the average, the unemployment rate for the New England states is comparable or below the national average. The cold winter season in these states is considered a detriment to some in regards to recreation, but a boon to those who love winter sports. Many people who live in these states wouldn't consider living anywhere else.