New research has revealed the states that have been struggling...
Join our family of readers for as little as $5 per month and support local, unbiased journalism.
Already have an account? Log in to continue. Otherwise, follow the link below to join.
Please log in to continue |
New research has revealed the states that have been struggling the most since the start of the cost-of-living crisis, and Florida ranks fifth.
Debt relief experts at TurboDebt examined 13 separate factors relating to the cost-of-living crisis. Each factor was given a weighting and an individual score out of 10 within the analysis, before being given an overall score out of 100 to determine which states are struggling the most.
Louisiana is named as the state struggling the most in the cost-of-living crisis, with a final score of 68.76.
Receiving the highest possible score of 10 for this category, residents in Louisiana spend an average of 9.2% of their yearly salary on groceries alone, the most of any state. That’s an increase of 108% compared to Virginia, where residents spend the least at just 4.43%.
The state also scores a 10 for the percentage of the population that is unable to pay its energy bills, at a massive 27.66%. Furthermore, the Pelican State has the third-lowest average income in the US, at $55,244 a year, earning another high score of 9.22 out of 10.
Mississippi is a close second, with a final score of 68.57.
15.8% of adults live in households where there was sometimes or often not enough to eat in the past week, the highest figure in America, earning a score of 10 for this factor.
The state receives two further scores of 10: one because 45.09% of the population experiences difficulty paying their household bills, and another due to the average yearly income being the lowest in the US at $51,879.
In third is South Carolina, with a final score of 62.49.
The state receives a high score of 8.49 out of 10 for its debt-to-income ratio, as South Carolinians carry $1.64 of debt for every dollar earned.
A significant 48.8% increase in house prices from the start of 2021 to the beginning of 2024 results in a score of 8.69 out of 10. Additionally, 8.61% of yearly income is spent on groceries, earning the state yet another high score of 8.77 out of 10.
Alabama is fourth, with a final score of 61.92.
The Cotton State has the fifth-lowest average yearly salary at $58,600, resulting in a score of 8.45 out of 10. This is 38% lower than New Jersey, which has the highest average income of $95,141 a year.
24.22% of the population is unable to pay its energy bills, while 40.77% experience difficulty paying household expenses, earning scores of 7.19 and 7.61 out of 10, respectively.
Florida is fifth, with a final score of 61.86.
An average of 26.79% of yearly income goes toward paying rent, the highest of any state, resulting in a score of 10. In addition, 50.09% of households, the highest in America, spend more than 35% of their income on rent, earning another score of 10.
27.01% of households spend more than 35% of their income on monthly homeownership costs, such as mortgage payments and insurance, receiving a score of 6.77 out of 10.
Sixth is West Virginia, with a final score of 58.19.
27.08% of the population are unable to pay for their energy bills, the third-highest in the States, earning a score of 9.53 out of 10. The Mountain State also has the second-lowest salary, with residents earning an average of $53,842 a year, leading to a score of 9.55 out of 10.
New Mexico is seventh, with a final score of 58.06.
An average of 7.45% of yearly income is spent on groceries, resulting in a score of 6.34 out of 10. Furthermore, an average of 38.19% of the population experience difficulty paying household bills, awarding a score of 6.19 out of 10.
Eighth is Oklahoma, with a final score of 57.95.
Receiving a high score of 8.3 out of 10, the state has one of the lowest average salaries in the US at $59,212 a year. Additionally, 13.03% of adults live in households where there was sometimes or often not enough to eat in the past week, resulting in a score of 6.76 out of 10.
A close ninth is Tennessee, with a final score of 57.67.
The Volunteer State has seen one of the largest increases in house prices since 2021, at 48.77%, leading to a score of 8.68 out of 10. Tennessee also has a high household debt-to-income ratio which scores the state 8.09 out of 10; for every dollar earned, Tennesseans have $1.62 of debt.
Georgia rounds out the top ten, with a final score of 57.04.
43.03% of households spend more than 35% of their income on rent, resulting in a score of 6.39 out of 10. House prices in Georgia also saw a significant rise of 47.8% since the beginning of 2021, receiving a score of 8.4 out of 10.
Top 10 states struggling the most in the cost-of-living crisis
|
Rank |
State |
Final score out of 100 |
|
1 |
Louisiana |
68.76 |
|
2 |
Mississippi |
68.57 |
|
3 |
South Carolina |
62.49 |
|
4 |
Alabama |
61.92 |
|
5 |
Florida |
61.86 |
|
6 |
West Virginia |
58.19 |
|
7 |
New Mexico |
58.06 |
|
8 |
Oklahoma |
57.95 |
|
9 |
Tennessee |
57.67 |
|
10 |
Georgia |
57.04 |
Commenting on the findings, Josh Stomel, co-founder of TurboDebt, said: “This study is one of the most comprehensive looks at the cost-of-living crisis, analyzing 13 different factors to give a complete picture of how this crisis is impacting Americans across the country.
“It’s clear from the data that Southern states like Louisiana, Mississippi, and Alabama are feeling financial pressure more than most. These areas are often reliant on industries such as agriculture and manufacturing, which haven't seen the same economic recovery as other sectors.
“While the crisis may look different in each state, the core issue remains the same: millions of Americans are struggling to afford the basics. Without meaningful policy changes, we risk deepening the divide between those who can manage the rising costs and those who are struggling to keep up.”
