What do you think the most expensive state to live in is?

The housing market has undergone significant swings since the pandemic began in 2020. Even though there was a temporary pause in early 2020, the market rebounded hotter than ever in 2021. As we rolled into 2022, the housing rush simmered down a bit, but not too much.

The median home price as of January 2022 was $350,300, compared to $356,700 in August 2021, says the National Association of Realtors. And now, according to Zillow, the average price of a home is $331,533, with a predicted median of $390,546 by the end of the year.

To figure out the value of homes across the country for this year, specialists analyzed average home values from February of last year using Zillow’s forecast tool to predict the decrease or increase in home values by state to assess where they will stand as of this year.

They ranked each state according to its median home value, beginning with the lowest.

It’s important to note that researchers used the median home value instead of the median home price by state because value accounts for more factors, like comparable home sales and inspections.

Median home value estimates what the property is worth, while the median list price is based on demand and listing agent. So we’ve decided to take an in-depth look at what they came up with. Here are some of the most expensive states to buy a home in this year!

New York

New York’s median sale price: $745,000
New York’s median sale price to household income: 6.8

It isn’t a secret that homes in New York are some of the most pricey in the world. With a total area of 54,556sq miles, this expensive state is the 27th largest state in our country.

But its population of more than 20 million people in 2020 makes it the 4th most populous metropolis in the US. Two-thirds of the state’s population resides in the New York metropolitan area. This city is also the premier gateway for immigration into the US.

None of this surprises us, though. It’s home to the United Nations Headquarters and has been described as the world’s cultural, financial, and media capital, not to mention the world’s most economically influential city.

The most stable industry for which New York City is best known, the financial world of Wall Street, dates back to the era of the American Revolution. And The New York Stock Exchange, with a market capitalization of more than $20 trillion, is the world’s largest stock exchange.

Hawaii

Hawaii’s median sale price: $977,625
Hawaii’s median sale price to household income: 9.8

This expensive state is the only one outside of North America, the only island state, and the only state in the tropics. Hawaii is also one of a few US states to have once been an independent nation.

Out of the 50 American states, Hawaii is the 8th smallest in size and the 11th least populated, but the 13th most DENSELY populated, with 1.4 million inhabitants. Two-thirds of Hawaii’s population lives on O’ahu, home to the state’s capital and largest city, Honolulu.

Historically monopolized by a plantation economy, this state remains a significant agricultural exporter because of its fertile soil and uniquely tropical weather.

Its economy has gradually diversified since the mid-20th century, though, with tourism and military defense becoming the two largest sectors.

The state is well known for attracting many tourists, surfers, and scientists from around the globe with its diverse natural scenery, oceanic surroundings, active volcanoes, and clear skies on the “Big Island.”

Alaska

Alaska’s median sale price: $358,900
Alaska’s median sale price to household income: 6.1

Alaska is the largest state in the United States by area, comprising a total area of more than the three largest states, Texas, California, and Montana combined, and the 7th largest subnational division in the world.

It’s the 3rd least populated while at the same time the most sparsely populated state. Approximately half of Alaska’s residents live within the Anchorage metropolitan area.

Worth mentioning is that oil was discovered at Prudhoe Bay in 1968, and the Trans-Alaska Pipeline was finished in 1977. This resource has since contributed to about 90 percent of this expensive state’s economy.

Colorado

Colorado’s median sale price: $600,000
Colorado’s median sale price to household income: 5.9

Colorado is the 8th biggest and 21st most populated state in the US, with over 5,773,714 inhabitants. This expensive state is home to some of the country’s most beautiful and tallest mountains and has the highest elevation of any state.

Many visitors come to the state for skiing in Aspen and Vail, and outdoor enthusiasts love traveling through the Rocky Mountains or the Great Plains.

According to the state’s Department of Revenue, Colorado generated more than $387 million in tax revenue on marijuana in 2020. But historically speaking, the state has been rich in livestock, agriculture, and mineral extraction.

In addition to tourism, a developing technology scene strengthens the state’s economy, as does the presence of the military, including the US Air Force Academy.

Washington

Washington’s median sale price: $562,936
Washington’s median sale price to household income: 6.2

Washington is the 18th biggest state, with an area of 71,362sq miles, and the 13th most populated, with more than 7.7 million people.

Around 60 percent of Washington’s residents live in the Seattle metropolitan area, the center of transportation, business, and industry along Puget Sound, an inlet of the Pacific Ocean consisting of numerous islands and bays carved out by stunning glaciers.

But one very important thing that Washington is known for: it’s the birthplace of Starbucks coffee, Boeing Co., and Microsoft Corp. Because of its coastal location, this expensive state is a crucial exporter for the US, notably for transportation equipment.

Furthermore, the state is essential to the nation’s food and agriculture industry, generating 70 percent of the country’s apples, and also a leader in milk, potato, and cattle production. The aerospace industry is a significant economic driver for the state.

The military and defense sector employs the second-largest number of people in this area, with more than 127,000 active duty, guard, reserve, and civilian personnel.

Wyoming

Wyoming’s median sale price: $430,000
Wyoming’s median sale price to household income: 4.4

It probably surprises you to learn that Wyoming is one of the most expensive states in our country. It’s the 10th largest state by area and also the least populated, but most DENSELEY populated in the contiguous United States.

One thing to know is that significant job growth is expected over the next ten years, by 13.3 percent, to be exact, which is, unfortunately, lower than the US average of 33.5 percent.

As a state whose workforce largely depends on tourism, mineral extraction, and agriculture, this expensive state’s industries have suffered a bit more than others from the coronavirus pandemic.

Interesting Fact: This state produces about 40 percent of the nation’s coal, making it a top coal producer in our country.

If you want to move sometime in the near future or would like to invest in some real estate, it’s important to keep these expensive states in mind.

And if you’re looking for some more useful tips to better manage your finances, we suggest reading: A Recession Is Upon Us! Here Are 8 Things You Don’t Know About Them!