Democrats have promoted themselves as the party capable of delivering "affordability" for Americans, yet a recent study suggests that most states led by Democrats are among the most expensive in the nation. The analysis found that nine out of the ten states with the highest cost of living are governed by Democrats, while Republican-led states tend to be more affordable.
Democratic leaders have recently emphasized a commitment to addressing rising costs. Senate Minority Leader Chuck Schumer stated that "lowering costs will be our North Star" if Democrats gained a Senate majority. Similarly, the chair of the House New Democrat Coalition introduced an "Affordability Agenda" aimed at tackling the cost-of-living crisis.
However, critics point to rising inflation during President Joe Biden's term, with the Consumer Price Index reportedly soaring above 9% and the overall cost of living increasing by more than 20%. This period has been marked by concerns about the affordability of everyday necessities.
CNBC's study, which ranked states by cost of living as part of its business-friendliness analysis, highlighted that states with high living costs often face challenges in attracting businesses. Companies consider the cost of living when assessing a state's suitability for relocation or expansion, as it impacts their ability to hire employees and their overall operational expenses.
The study identified California, Colorado, Hawaii, Oregon, New York, Rhode Island, Connecticut, Washington, and Illinois as among the ten most expensive states. These states, according to the report, generally feature above-average rents and other significant costs. Most of these states are led by Democratic governors and have Democratic supermajorities in their state legislatures.
While some high costs, like those in Hawaii, may be attributed partly to geography, the study suggests that Democratic policies contribute significantly to the elevated prices of housing and other essentials in many of these states. Factors cited include stringent regulations, energy policies that increase utility and fuel costs, and high taxes resulting from what is described as reckless spending.
California, specifically, is noted as the most expensive state. Its housing costs are the highest in the U.S., with a substantial portion of residents paying over 30% of their income for housing. Research indicates that the cost to build affordable housing in California is considerably higher than in states like Texas, partly due to lengthy permitting processes. The state's average monthly energy bill and gasoline prices are also reported to be significantly higher than the national average. California's policies aimed at shifting consumers away from fossil fuels and towards electric vehicles, coupled with a high gasoline tax, are presented as contributing factors.
High rents in Democratic-run states are also linked to strict local zoning laws and pro-union regulations that increase construction costs, along with high property taxes that are often passed on to renters. Additionally, mandated high wages, while seemingly beneficial, can contribute to higher unemployment rates in some of these states.
In contrast, the study identified Missouri, Ohio, Indiana, Alabama, West Virginia, Kansas, Iowa, Wyoming, South Dakota, and North Dakota as among the most affordable states. These states predominantly have Republican leadership and, in many cases, Republican supermajorities in their legislatures.
The findings suggest a correlation between state governance and the cost of living, prompting a re-examination of the "affordability" claims made by the Democratic party.