Living in the United States can be expensive, but fortunately, some states offer a more affordable lifestyle. According to a recent report, the cost of housing, groceries, healthcare, and other essentials in the United States has become more expensive in recent years as the Consumer Price Index has increased. Despite the higher inflation and generally rising prices, some states in America provide reasonably lower costs of living.
The most recent cost of living index calculated by Statista highlights the most affordable states in the country. We have listed the top American states, from Mississippi to Alabama, where even the broke can live happily. Moving to one of these states can help individuals and families save money and enjoy a better quality of life.
Oklahoma
Cost of living index score: 86.2
Oklahoma provides a very affordable lifestyle. Housing costs are 29% lower than the national average. Even after the slight price hike after the pandemic, the median price for houses in the state is available in the budget range of $235K-$320K. The state also offers low prices for groceries and transportation. The cost of living in this state is suitable for people with poor financial conditions.
Mississippi
Cost of living index score: 86.3
Mississippi has one of the lowest living costs in the United States. According to the Mississippi Development Authority, housing costs in this state are almost 40% lower than the national average. Moreover, affordable groceries and healthcare make this place lucrative for financially unstable people. Despite its economic nature, Mississippi struggles with poverty as the median salary range is $47,570 only. So, make sure to have a settled job before relocating.
Kansas
Cost of living index score: 87.1
Kansas is an affordable place to live due to its low housing costs, which are significantly below the national average. The state also benefits from low property taxes ranging from 11.5% to 25% for assessing residential and commercial properties.
Additionally, Kansas offers affordable healthcare and relatively inexpensive utilities and groceries. These factors make Kansas an attractive option for those seeking a budget-friendly lifestyle.
West Virginia
Cost of living index score: 87.7
The average housing cost for West Virginia is around $163K which is pretty affordable for low-income families. The minimum wage range in the state is $8.75/hour and there are plenty of jobs available in the state as well.
Moreover, West Virginia has a reasonably priced healthcare system. Groceries and other utilities are quite affordable here as well.
Alabama
Cost of living index score: 88.3
Alabama is an affordable place for people on a tight budget. The state offers low housing costs, with both rent and home prices significantly below the national average.
Additionally, Alabama has a low cost of living overall, including affordable groceries, utilities, and healthcare. The state’s lower tax burden further contributes to its affordability, making it a viable option for those with limited financial resources.
Missouri
Cost of living index score: 88.5
The average cost of owning a house in Missouri is around $247K and you can rent a home under $1000 at regions like Springfield, Branson, etc.
The median salary range for an average family in Missouri is around $71520 with a significant increase from last year. The cost of living in Missouri varies depending on the city and lifestyle, but generally, it’s quite affordable.
Arkansas
Cost of living index score: 89
It is affordable to live in Arkansas due to its low housing costs, with some of the country’s lowest home prices and rental rates. The average rent of a family home in the state is around $785, which is way below the national average.
The state also benefits from relatively low property taxes and no state sales tax on groceries. Furthermore, inexpensive transportation makes Arkansas an attractive option for budget-conscious individuals and families. Additionally, the overall cost of living, including groceries, utilities, and healthcare, is on the cheaper side.
Tennessee
Cost of living index score: 90.3
Tennessee is affordable for people on a tight budget as both rent and home prices are significantly below the national average. Moreover, Tennessee has no state income tax, which helps residents save more of their earnings. The overall cost of living, including groceries, utilities, and healthcare, is also lower than the national average, making Tennessee a viable option for those with limited financial resources.
Iowa
Cost of living index score: 90.3
Iowa has a low overall cost of living, including affordable groceries, utilities, and healthcare. Property costs and taxes are also relatively low, making it feasible for people on a tight budget. The state’s strong agricultural base helps keep food prices reasonable. These factors make Iowa a practical choice for those with limited financial resources.
Michigan
Cost of living index score: 90.6
Michigan’s overall cost of living is comparatively low, including affordable groceries, utilities, and healthcare. Additionally, the state has moderate property taxes and no state sales tax on groceries. These factors make the state a practical and budget-friendly option for individuals and families with limited financial stability.
Georgia
Cost of living index score: 90.8
The cost of living, including housing, groceries, utilities, and transportation, tends to be lower in Georgia compared to many other states. Additionally, the state offers various tax breaks and exemptions, such as no state income tax on military retirement income, which contributes to its affordability. However, please note that specific costs can vary depending on the city or region within the state.
Nebraska
Cost of living index score: 90.9
Nebraska’s rental and home prices tend to be more affordable than those in other states. Additionally, Nebraska offers relatively low property taxes and reasonable costs for groceries, utilities, and health services. Overall, these factors contribute to Nebraska’s practicality for individuals and families seeking affordability.