California ranks dead last in affordability, No. 35 overall in 2026 Best States list

LOS ANGELES – California made a modest climb to rank 35th overall in the newly released U.S. News & World Report 2026 Best States Rankings. 

While the Golden State earned top-tier marks for health care quality and education, severe housing unaffordability and high living costs dragged down its overall performance.

Local perspective:

California ranked 35th overall in the 2026 rankings, moving up slightly from No. 37 last year. 

The annual report evaluates state performance across dozens of metrics in eight broad categories to evaluate how well states serve their residents.

The Golden State achieved its strongest rankings in health care (No. 7) and education (No. 25). 

In other categories, California placed No. 26 in economy, No. 27 in natural environment, No. 32 in infrastructure, No. 36 in crime and corrections, and No. 44 in fiscal stability. 

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However, California ranked dead last at No. 50 in the opportunity category, which measures cost of living and housing affordability.

Dig deeper:

Data from the U.S. Bureau of Economic Analysis and the Federal Reserve Bank of St. Louis shows California’s cost of living was about 11% above the national average in 2024. 

Living wage data sourced from the Living Wage Institute via MIT indicates that a single adult with no children in California must earn $30.48 per hour full-time to cover basic necessities without assistance. 

Overall, California performed slightly better than neighboring Nevada and Oregon, though it ranked behind Arizona.

Big picture view:

Nationally, Utah claimed the top spot in the rankings for the fourth consecutive year, buoyed by top performances in economy (No. 2), fiscal stability (No. 2), infrastructure (No. 4), education (No. 6), and crime and corrections (No. 7).

The top 5 states overall in the 2026 U.S. News rankings are:

1. Utah
2. South Dakota
3. Minnesota
4. North Dakota
5. Nebraska

South Dakota posted one of the year’s largest advances, rising from No. 8 to No. 2 overall. 

New Hampshire, Idaho, Florida, Washington, and Vermont rounded out the Top 10.

In category-specific leaders, Texas placed No. 1 in economy, Hawaii led in health care and natural environment, Colorado ranked first in education, Nevada topped infrastructure, Wyoming led in fiscal stability, New Hampshire earned top marks in crime and corrections, and Vermont ranked first in opportunity.