A family of 4 now needs more than $300K/year to live ‘comfortably’ in this 1 state — the most in the US (and it’s not New York, California or Hawaii)

According to a recent report by SmartAsset, using the 50/30/20 budgeting rule, a family of four in Massachusetts now needs an eye-watering $301,184 per year to live comfortably — the highest rate for families in the country. (Hawaii came in as the most expensive for singles.)

As the state’s affordability crisis deepens, residents and potential movers are left grappling with hard choices about where and how they can afford to live.

How Massachusetts compares to the rest of the U.S.

To understand how expensive Massachusetts has become, it helps to compare the state’s cost of living to national benchmarks. The median household income in the U.S. is $80,610, according to the U.S. Census Bureau’s most recent data.

In Massachusetts, that number is higher, at around $97,000, but it still falls far short of what’s needed to live comfortably by the 50/30/20 standard (50% of household income for essentials, 30% for discretionary spending and 20% for long-term goals). Only a small percentage of families in the state make $300,000 or more annually (less than 10%), which means the majority of households, including ones that are considered upper-middle class, are under financial pressure.

The main culprit behind the state’s high cost of living is housing. The median home price in Massachusetts has soared to more than $622,000, according to Redfin, and rent for a two-bedroom apartment averages more than $2,800 per month — a steep increase over the national average rent of about $1,700.

Child care costs are also sky-high, with families in the Boston metro area often spending $20,000 to $30,000 annually per child for full-time care. Add in health care, groceries, utilities and transportation, and it’s easy to see how quickly expenses can balloon past manageable levels.

Who’s catching up and who’s falling behind?

Massachusetts may be the most expensive state for families today, but others are not far behind. California, New York and Hawaii have long been known for their high costs, but recent data shows three other states with costs of living rising faster than the national rate: Washington, Colorado and Oregon.

In Washington, rising tech sector wages and housing demand in Seattle have driven prices higher across the board. In Colorado, the influx of remote workers has sent home prices in cities like Denver and Boulder skyrocketing. Oregon, once a more affordable option in the Pacific northwest, is seeing similar effects as demand outpaces supply.

Massachusetts has a lot of attractions for families. The state tops the rankings nationally for education and safety.

But those perks come at a price. With a cost of living that far exceeds the national average and a “comfortable” income benchmark of more than $300,000 for families, the state now leads the nation in unaffordability.