A $75,000 salary buys a very different life in Mississippi than in Hawaii. The Bureau of Economic Analysis quantifies this through Regional Price Parities, and the differences are larger than most people expect.
What Regional Price Parities (RPP) Measure
RPP compares the price levels of goods and services across states against the national average (100). An RPP of 86 means prices are 14% below average. An RPP of 119 means 19% above.
This covers housing, food, transportation, healthcare, and other goods and services, weighted by actual consumer spending patterns.
Cheapest States (Lowest RPP)
| State | RPP | What $75K Feels Like |
|---|---|---|
| Mississippi | ~86 | $87,200 |
| West Virginia | ~87 | $86,200 |
| Arkansas | ~87 | $86,200 |
| Alabama | ~88 | $85,200 |
| Oklahoma | ~89 | $84,300 |
Most Expensive States (Highest RPP)
| State | RPP | What $75K Feels Like |
|---|---|---|
| Hawaii | ~119 | $63,000 |
| California | ~115 | $65,200 |
| New York | ~114 | $65,800 |
| Massachusetts | ~110 | $68,200 |
| Washington | ~108 | $69,400 |
The “what $75K feels like” column shows the equivalent purchasing power when adjusted by RPP.
How RPP Affects Home Buying
Cost of living directly impacts affordability in ways that median home prices alone don’t capture:
A $300,000 home in Mississippi (RPP 86): Lower utility costs, cheaper repairs, lower-cost trades ($22.80/hr plumber vs. national $28.80), cheaper groceries. Total ownership cost is meaningfully lower than the price tag suggests.
A $300,000 home in Hawaii (RPP 119): Higher electricity (highest in the nation), expensive trades ($38.50/hr plumber), expensive groceries and services. Total ownership cost significantly exceeds what the purchase price implies.
HomeStats adjusts utility estimates using RPP data on every state page. Water, sewer, and trash costs are calculated from a national baseline adjusted by the state’s price parity.
RPP and Living Wage
HomeStats calculates a living wage estimate for every state using:
- HUD Fair Market Rent (housing component)
- BEA RPP-adjusted non-housing essentials
The living wage in Mississippi is roughly $13-$14/hour. In Hawaii, it’s over $22/hour. Check any state page for the calculated living wage.
The Remote Work Factor
For remote workers earning a fixed salary, RPP is the most important number in choosing where to live. A $100,000 tech salary stretches to the equivalent of $116,000 in Mississippi but shrinks to $84,000 in Hawaii.
Explore cost of living alongside home prices and market conditions on the HomeStats interactive map.
For the complete financial analysis of homeownership costs including cost-of-living adjustments, read The Resale Trap.