When it comes to states that balance quality and cost of living, the United States offers a wide variety of options. Of course, the cost of living varies from state to state, making some states more affordable than others. If you are fed up with paying top dollar for housing, taxes, groceries, and utilities or want a new vibe, now you may be wondering which states have the lowest cost of living in the United States. To find out that information you can read the entire text below. We will share information about the States with the cheapest cost of living in the United States.
What is the Cost of Living?
The cost of living is the amount of money you need to cover your basic living expenses in a place. It usually takes into account all types of expenses, such as housing, groceries, transportation, taxes, health care, and utilities. To find the place with the lowest cost of living, the average cost of these costs is then calculated and compiled into a cost of living index. That way, you will be able to better compare the cost of living in different locations.
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Cost of Living Index
To find out the cost of living index, researchers typically collect data on major living expenses to study and understand the average cost of living across the United States. Based on a report from the United States Bureau of Labor Statistics (BLS), for the cost of living each month, the average American household spends about $5,111. This translates to a cost of living in the United States of about $61,334 per year. This number is only the average and will vary from state to state.
However, by using the cost of living index as a basis for comparison, we can easily understand the differences in the cost of living from one state to another state. In addition, the cost of living index can also set the national average monthly cost to 100. This will definitely make it easier for you to find which states have the lowest cost of living.
If you want to calculate the average cost of living for a state, or various states, you just need to compare the number to the national average. For example, as we know, the state with the highest cost of living is Hawaii, with a score of 193.3 on the index. Now, this means that the cost of living in Hawaii is 93.3% higher than the national average. If a state scores below 100 on the index, then that state will be considered to have a cheaper cost of living than the national average.
The Cheapest States to Live in in the United States
The following is a list of the cheapest states in the United States to live in for 2024, based on several factors such as housing affordability, cost of living index, and overall economic conditions.
1. West Virginia
West Virginia is one of the states with a low cost of living. For information, the cost of living in West Virginia is about 16.2% below the national average. If you are planning to move and buy a new home at an affordable price, West Virginia could be your choice. Housing prices in West Virginia are very cheap. And, that is also a big factor in the numbers. We have learned that West Virginia has the lowest median home value of any state in the United States. If you are planning on moving here, you might want to consider Charleston, which is the state capital and largest city in West Virginia. In Charleston, housing costs are about 43% below average. You will save on your housing expenses.
Here is how the cost of living in West Virginia compares to the rest of the United States:
West Virginia | United States | |
| Median Home Value | $155,100 | $320,900 |
| Median Monthly Rent | $900 | $2,139 |
| Median Household Income | $54,329 | $74,755 |
| Unemployment Rate | 4.2% | 4.0% |
2. Oklahoma
According to research, the average cost of living in Oklahoma is about 13.6% lower than the national average. If you are looking to relocate to live in Oklahoma, you might want to consider Ponca City. For your information, Ponca City is the cheapest city in Oklahoma. By living in Ponca City, it means that you will enjoy living there with a cost of living that is 20.6% below the average. You can also find a job there to survive. Do not worry, you can easily find a job there too. To find out how much you can earn in Oklahoma, and how much housing costs there, you can see the table below.
Oklahoma | United States | |
| Median Home Value | $191,700 | $320,900 |
| Median Monthly Rent | $1,395 | $2,139 |
| Median Household Income | $59,673 | $74,755 |
| Unemployment Rate | 3.5% | 4.0% |
3. Kansas
Kansas is also the cheapest state to live in. It is located right in the middle of the American heartland. According to research, the cost of living in Kansas is about 12.7% below the national average. Sometimes, Kansas is also called the breadbasket of the United States because it produces a lot of wheat. Housing prices in Kansas are very affordable. Interestingly, Kansas is the state with the lowest unemployment rate in the United States. Therefore, the economy there is good. And, it is suitable for you to move there if you want to find a new atmosphere. Check out the table below to see how housing prices, salaries, and unemployment rates in Kansas compare to the rest of the United States.
Kansas | United States | |
| Median Home Value | $206,600 | $320,900 |
| Median Monthly Rent | $1,250 | $2,139 |
| Median Household Income | $68,925 | $74,755 |
| Unemployment Rate | 2.9% | 4.0% |
4. Alabama
According to research, Alabama has an 11.9% lower cost of living than any other state in the United States. The average housing price in Alabama is $170,184. In addition, healthcare and transportation costs are also among the lowest in the United States. This could be a good choice if you are planning to move. For your information, Florence is the cheapest city in Alabama. There the cost of living is about 16.1% below the national average. Even in Auburn, which is considered the most expensive city, the cost of living there is only 7.1% below the national average. Apart from being one of the states with a low cost of living, Alabama is also known as a state that has a mix of forests and beaches. And, because the soil contains iron ore and coal, Alabama is also one of the largest steel producers in the United States. Most importantly, the unemployment rate in Alabama is also quite low at 3% which means the economy is good.
Now, let us see how Alabama’s housing prices, income, and unemployment rate compare to the rest of the United States:
Alabama | United States | |
| Median Home Value | $200,900 | $320,900 |
| Median Monthly Rent | $1,398 | $2,139 |
| Median Household Income | $59,674 | $74,755 |
| Unemployment Rate | 3.0% | 4.0% |
5. Mississippi
As the state with the cheapest cost of living in the United States, Mississippi can be an option for those of you who want to live in a state with a low cost of living. For information, the cost of living in Mississippi is 11.7% below the national average. The cheapest city in this state is Tupelo. The cost of living there is 16.2% below the national average. In addition, the state of Mississippi also has the lowest average housing costs, at 33.7% below the national average. So, are you interested in living in Mississippi? Check out how housing prices, rental costs, income, and unemployment rates compare in Mississippi with other states in the United States.
Mississippi | United States | |
| Median Home Value | $162,500 | $320,900 |
| Median Monthly Rent | $1,450 | $2,139 |
| Median Household Income | $52,719 | $74,755 |
| Unemployment Rate | 2.8% | 4.0% |
6. Arkansas
Arkansas is known as the cheapest state to live in due to its affordability in various aspects of daily life. The cost of living in the state of Arkansas is low, at 11.5% below the national average. Arkansas also has very affordable housing costs. Additionally, the cost of groceries, maintenance costs, and utilities are also lower than other states. Arkansas also offers its citizens a wide range of job opportunities in various industries. Walmart, headquartered in Bentonville, Arkansas, is the largest employer in the state of Arkansas. Interestingly, Arkansas has caves, natural hot springs, and stunningly beautiful forests. If you live there, you will feel comfortable. You can choose to live on the plains or in the mountains.
Now, let us look at the housing prices, rental costs, income, and unemployment rate in Arkansas compared to other states!
Arkansas | United States | |
| Median Home Value | $179,800 | $320,900 |
| Median Monthly Rent | $1,375 | $2,139 |
| Median Household Income | $55,432 | $74,755 |
| Unemployment Rate | 3.4% | 4.0% |
7. Missouri
Missouri borders two other states where the cost of living is cheap. For your information, the cost of living in this state is 11.5% lower than the national average. St. Louis is the largest city in the state of Missouri. If you are a sports fan, you might want to consider this city because you can find professional sports teams there. Missouri also offers lower housing costs, grocery prices, utilities, and transportation than other states. Aside from that, Missouri is also the state with the lowest unemployment rate, which is 3.5% lower than other states. That is the reason why many people choose to live in Missouri.
The following is an overview of housing prices, rental costs, salaries, and the job market in Missouri:
Missouri | United States | |
| Median Home Value | $221,200 | $320,900 |
| Median Monthly Rent | $1,300 | $2,139 |
| Median Household Income | $64,811 | $74,755 |
| Unemployment Rate | 3.5% | 4.0% |
8. Iowa
Iowa is one of the cheapest states in the United States. Its cost of living is 9.9% below the national average. Des Moines, which is the state capital, is one of the cheapest capital cities in the United States with a cost of living 14.1% below the average. Housing costs in Iowa are also cheap. So, you will definitely be able to find affordable housing wherever you go in this state. In addition, Lowa also offers many state parks, aquariums, museums, and historical sites. Are you interested in living in Lowa? Below we provide an overview of home prices, rental costs, income, and unemployment rates in Iowa.
Iowa | United States | |
| Median Home Value | $194,600 | $320,900 |
| Median Monthly Rent | $1,100 | $2,139 |
| Median Household Income | $69,588 | $74,755 |
| Unemployment Rate | 2.8% | 4.0% |
9. Tennessee
You might have planned to move to Tennessee because of its low cost of living. Yes, in Tennessee, you can enjoy a very low cost of living. Based on research, the cost of living in the state of Tennessee is 9.7% below average. Pretty cheap, right? You probably can choose Nashville to live in. It is one of the most expensive cities in Tennessee. However, the cost of living there is 3.4% lower than the average cost of living for cities in the United States. If you live in Tennessee, you can enjoy the beauty of the Great Smoky Mountains.
In this table is a comparison of home prices, rental costs, income, and the average unemployment rate in Tennessee with other states:
Tennessee | United States | |
| Median Home Value | $284,800 | $320,900 |
| Median Monthly Rent | $1,795 | $2,139 |
| Median Household Income | $65,254 | $74,755 |
| Unemployment Rate | 3.0% | 4.0% |
10. Indiana
Indiana has a cost of living that is 9.7% lower than the US average. The lower cost of housing compared to other states is a major factor why Indiana is considered a cheap state to live in. Also, in Indiana, necessities like food and clothing are also more affordable. For information, the prices of groceries and clothing are about 4% lower compared to the rest of the country. In addition, Indiana also offers lower Healthcare costs. The cost of doctor check-ups and dental care is about 6% lower than the national average. Indiana’s business-friendly environment and lower business taxes, make Indiana an attractive state for entrepreneurs looking to start a business. Let us look at the housing prices and average income you can earn in Indiana.
Indiana | United States | |
| Median Home Value | $208,700 | $320,900 |
| Median Monthly Rent | $1,395 | $2,139 |
| Median Household Income | $66,785 | $74,755 |
| Unemployment Rate | 3.7% | 4.0% |
11. Georgia
The cost of living in Georgia is 8.7% below the national average, making it an attractive location for individuals and families to live. Georgia offers cheaper housing than any other state. For your information, the median home value in Georgia is $297,400, which is lower than the national average of $320,900. Also, Georgia offers a wide range of economic opportunities in various industries, including manufacturing, healthcare, and agriculture. The lower costs of groceries, utilities, taxes, and healthcare make it attractive as a cost-friendly place to live. You can see a comparison of home prices, rental costs, and average income in Georgia from the table below.
Georgia | United States | |
| Median Home Value | $297,400 | $320,900 |
| Median Monthly Rent | $2,000 | $2,139 |
| Median Household Income | $72,837 | $74,755 |
| Unemployment Rate | 3.2% | 4.0% |
12. Michigan
Another cheapest state to live in is Michigan. Keep in mind that the cost of living in Michigan is 8.2% below the national average. Pretty cheap, isn’t it? Housing costs in Michigan are also quite affordable. You might have thought about living in Michigan because of its low cost of living. If so, it is time to plan. There are many cities in Michigan that offer a comfortable and business-friendly environment. Apart from that, Michigan is also famous for its automotive industry, Great Lakes, and winter sports. If you love winter sports like ice fishing, skiing, and hockey, Michigan is a great place to live.
Here is a comparison of housing prices, housing costs, income, and average unemployment rates in Michigan that you can compare with other states:
Michigan | United States | |
| Median Home Value | $224,400 | $320,900 |
| Median Monthly Rent | $1,375 | $2,139 |
| Median Household Income | $66,986 | $74,755 |
| Unemployment Rate | 3.9% | 4.0% |
Conclusion
There are several states in the United States with the cheapest cost of living that you can live in, namely West Virginia, Oklahoma, Kansas, Alabama, Mississippi, Arkansas, Missouri, Lowa, Tennessee, Indiana, Georgia, and Michigan. If you live in one of these states, you will enjoy your life with a very affordable cost of living. Housing costs, food prices, taxes, and healthcare in these states are very cheaper compared to other states. The cheapest cost of living makes it an attractive destination for individuals and families who want to save money without sacrificing quality of life.
