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Grocery Shopping Costs: Best & Worst States

March 18, 2024 · Shopping
grocery costs

When you want to settle down, there are many factors that can influence your decision. From your family and your job to a good rental contract, a lot of things can make you choose one place or another. Grocery costs are also one of them. Or at least it should be.

The average price of food all around the country varies considerably, and this is why we believe you should be informed about this matter. Some states are cheaper than others when we talk about groceries, and this can influence you to move there or not.

Have you ever wondered how much of your paycheck goes on groceries? The average American leaves 5.2% of their paycheck at the supermarket. This is not a small expense. So, let’s see which states have the biggest grocery prices, but also which ones have the most affordable prices.

grocery costs
Photo by doublelee from Shutterstock

What causes the prices to vary this much?

You probably want to know the answer to this question, and being aware of it can help you better understand this phenomenon. If you live in the United States, you know that the prices are so different from one state to another. For example, a gallon of milk in Rhode Island is $3.21, while the same quantity of milk is $1.97 in Massachusetts.

What causes these price differences? Well, this is not an easy answer, but there are many factors that contribute to it. The number of people living in that area, the number of grocery stores available, and the services, as well as the supply and demand, all play a role in this.

It is easy to understand why some apples would be more expensive in a big city than in a small plantation town. So, the geographical location is also an important factor.

New York

We will start this list with the state that has the highest grocery costs, and that is New York. A recent CNBC study says that New York is the third-most expensive state to live in, and it is easy to understand why this is happening. The booming housing market is the main cause. More and more people decide to live in New York, and this also increases grocery costs.

The prices vary depending on the city, but you need to know that Brooklyn and Queens are easily found at the top of the list. Then it comes Manhattan, where the grocery costs are 39.7% above the average, and number one is definitely New York City, where the prices are 140.58% above the national average.

Buying a dozen eggs in New York will make you pay $6.70, and the price for half a gallon of milk is $2.56. This is, for sure, an expensive state to live in!

Hawaii

Right after New York follows Aloha State. This is the second state that has the highest grocery costs. We know that this is one of the most beautiful places you will ever see, with scenic beaches and nice weather all year round, but at the end of the day, you will pay for all of this in supermarket sprees.

If we were to compare the prices from Hawaii to the national average, we would see that this state manages to exceed it by a whopping 69.3%! For example, in this state, you have the chance to buy the most expensive tomatoes and also the most expensive Coke and table wine. A regular bottle of Coke will cost you $3.20 instead of the $1.25 you will pay anywhere else.

Now, let’s see how much you have to pay for eggs and milk. Half a gallon of milk will cost you $4.18, and a dozen eggs will cost $6.

California

In third place for the highest grocery costs, we have California. You were probably expecting the Golden State to be on this list, and here it is.

This is the place where you can find Los Angeles, Hollywood, and Beverly Hills. It is easy to understand why things are so expensive. But what is surprising is that these places do not make you pay the most for your groceries. The highest grocery costs are actually in Oakland and San Francisco, where they exceed the national average by 39.4% and 35.6%, respectively.

For a dozen eggs, you will have to take $4.74 out of your pocket, and for half a gallon of milk, you will have to pay $2.86.

Alaska

This is a cool place to live, but the prices are not so cool. Here, you can find some of the highest grocery costs. For the basic stuff, Alaskans will have to pay more than the average American, more precisely 34.5% to 50% more. Juneau and Anchorage have the highest prices.

Hopefully, the good news is that if you are a pescatarian, you can find fish for incredible prices in Alaska, as this is the land of halibut, salmon, herring, and crab.

Now, let’s see the prices for milk and eggs. For half a gallon of milk, you will need to pay $2.53, and for a dozen eggs, you will have to pay $3.69.

But what are the states that have the best grocery costs?

grocery costs
Photo by fizkes from Shutterstock

Oklahoma

This state has the most convenient grocery costs, and it also has all of your favorite stores available: Whole Foods, Target, Albertsons, Aldi, Walmart, Costco, and Sam’s Club. For a dozen eggs, you will need to pay only $1.75, and for half a gallon of milk, $1.50! These are some good prices!

But these prices also vary from city to city. For example, it would be a good idea to avoid Tusla, as things are pricey there. But Seminole, Oklahoma City, Blackwell, and Holdenville are all great places to make your groceries.

Mississippi

This is not exactly the cheapest place to live because it has some of the biggest prices for health and beauty products, but what makes it an entry on this list is the good grocery costs. In Mississippi, you can find chain stores like Winn Dixie, Walmart, and Save a Lot, and you can make most of your groceries there. They also have affordable prices.

Mississippians benefit from much cheaper grocery prices thanks to the vast supply accessible at these large box retailers. Mississippi, however, imposes a 7% sales tax on food. Unexpectedly, the overall cost of a grocery run remains at the lower end of the national average.

Missouri

If you want to live in a wonderful place that also has affordable grocery costs, Missouri is the place for you. Here, you can purchase half a gallon of milk for $1.40 and a dozen eggs for $1.67.

A recent study led by the Missouri Economic Research and Information Center found that the prices here are well below the national average. And if you love your morning routine, you need to know that here you will find the best prices for eggs, milk, and bananas.

As you can see, grocery costs vary greatly among the states, and if you want to move, it can be a great idea to learn more about this before making this decision.

The number one rule if you want to save money on groceries is to never go to the store hungry. But do you know what else can help you? A grocery list. This is a great idea, and these magnetic notepads that you can place on your fridge can be a good solution: 8 Magnetic Notepads – Notepads for Grocery List, Shopping List, To-Do List, Reminders -Strong Magnetic Back

You should also read: Want to Save $1,000 Monthly? Learn to Avoid These 6 Grocery Store Traps

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