California, Washington, DC, and several states in the Northeast have a high cost of living based on goods and services.

Purchasing power parities (PPPs) are primarily used to convert economies’ national accounts expenditures on GDP and its components into a common currency. PPPs control for differences in price levels ...

"Regional price parities measure the differences in price levels across states for a given year and are expressed as a percentage of the overall national price level," BEA said in a news release.