When it comes to finding a place that balances cost and quality of living, the United States offers a diverse range of options. Whether you’re considering moving or simply curious about economic trends, understanding the most budget-friendly states can provide valuable insights. Here’s a list of the cheapest states in the U.S., based on factors such as housing affordability, cost of living index, and overall economic conditions.
List of 12 Cheapest States of the United States
- Alabama
- Arkansas
- Georgia
- Indiana
- Iowa
- Kansas
- Mississippi
- Missouri
- Oklahoma
- West Virginia
- Kentucky
- Texas
1- Alabama
Alabama is considered one of the cheapest states to live in the United States due to a combination of factors that make it an attractive and budget-friendly place to reside. One key reason is the state’s low housing costs, which are particularly affordable, averaging around $30-$40 per day. The affordability of housing contributes to the overall low cost of living in Alabama.
Alabama offers favorable tax benefits, including relatively low property and income taxes. Moreover, Alabama provides affordable healthcare, economic opportunities, and abundant recreational offerings, all of which contribute to a high quality of life without a hefty price tag. The state’s economic diversity and job opportunities in various industries make it easier for residents to find employment that matches their skills and interests.
Overall, Alabama’s charm extends beyond its affordability, offering benefits of low living costs, tax benefits, economic opportunities, and quality of life that make it an appealing destination for individuals and families looking to make the most of their budget while enjoying a good standard of living.
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2- Arkansas
Arkansas is recognized as the second cheapest state to live in the United States due to its affordability in various aspects of daily living. The state’s cost of living is low, with daily expenses estimated to be around $110-$130. Housing costs in Arkansas are particularly affordable, averaging around $30-$40 per day.
Arkansas’s affordability extends to other areas as well. For instance, the state has relatively low property and income taxes. The cost of groceries and utilities in Arkansas is lower than in many other states, further reducing the cost of living. The state’s healthcare costs are also relatively affordable, with residents spending an average of $5,177 per year on healthcare.
Arkansas offers a wide range of job opportunities across various industries. The state’s economy is diverse, with significant contributions from sectors such as agriculture, manufacturing, and healthcare. This economic diversity, combined with the state’s affordability, makes Arkansas an appealing destination for those looking to balance the cost of living with quality of life.
Arkansas’s natural beauty and outdoor recreational opportunities add to its appeal. The state is home to numerous parks, lakes, and forests, providing cheap activities for families like hiking, fishing, and other outdoor activities for the young generation.
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3- Georgia
Georgia is recognized as the third most affordable state to live in the United States. The state’s cost of living is 8.9%, making it an attractive location for individuals and families. Georgia’s affordability is reflected in its housing costs, which are notably lower than the national average. The average home value in Georgia is $311,678, which is lower than the national average of $349,770.
Georgia also offers a range of economic opportunities across numerous industries, including agriculture, manufacturing, and healthcare. Georgia’s tax benefits also contribute to its affordability. The low property and income taxes further enhance its appeal as a budget-friendly place to live. The cost of groceries, utilities, and healthcare in Georgia is lower than in many other states in the United States.
In terms of recreational offerings, Georgia boasts a range of natural beauty and pocket-friendly outdoor activities, including hiking, fishing, and exploring the state’s numerous parks and forests. These recreational opportunities contribute to a high quality of life without any financial burden.
4- Indiana
Indiana stands out as the fourth most affordable state to live in the United States. The state’s housing costs play a significant role in its affordability, ranking lowest among all states in the U.S.
Necessities like food and clothing are also more affordable in Indiana, with grocery prices approximately 4% lower and clothing costs 4% lower compared to the rest of the country. Indiana is known for its lower healthcare costs, with services such as doctor check-ups and dentistry priced around 6% lower than the national average.
Indiana’s affordability extends beyond necessities to non-essential expenses like entertainment and grooming services. The state’s diverse offerings, including attractions like the Indiana Dunes National Park and the Indiana Dunes State Park, provide residents with recreational opportunities without breaking the bank.
Indiana’s business-friendly environment, characterized by lower business taxes and fewer regulations, makes it an appealing destination for entrepreneurs looking to start new ventures.
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5- Iowa
Iowa is considered one of the cheapest states to live in the US due to its low cost of living. The state has a strong agricultural industry, which contributes to its low housing costs. Iowa has the lowest housing costs in the US, according to a report by WalletHub. This has helped the state earn a top spot in the best states to live in the US.
The median home price in Iowa is $205,375, which is lower than the national average of $349,770. The state has a low median rent price of $1,050, making it an affordable option for renters as well. The cost of living in Iowa is also lower with expenses such as groceries, utilities, and transportation being more affordable.
Several cities in Iowa are particularly affordable, including Keokuk, Oelwein, and Burlington. For example, the median home price in Keokuk is $73,542 and the median rent in Keokuk is $639, making it an affordable option for renters. Whether you’re looking to buy a home or rent, Iowa offers a range of affordable options for individuals and families.
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6- Kansas
Kansas is renowned as one of the most affordable states to live in the United States. The state’s affordability is attributed to various factors, including its affordable housing options, low taxes, and low healthcare costs. The median price for a single-family home in Kansas is $198,199, and the average rent for a two-bedroom apartment is $995 per month.
Kansas boasts a low sales tax rate, contributing to the overall affordability of goods and services in the state. The cost of living in Kansas is further enhanced by its low unemployment rate of 2.5%, which is one of the lowest in the country. The state’s living wage for a family of four is $76,252.80 annually, slightly higher than the median income for a family of four, which is $72,815.
Kansas offers affordable groceries, transportation, and utilities, making it an attractive option for individuals and families looking to stretch their budgets. The state’s emphasis on cost-effective living, combined with its diverse economic opportunities and quality of life offerings, solidifies its position as one of the cheapest states to live in the US in 2024.
7- Mississippi
Mississippi is one of the cheapest states to live in the US due to its low cost of living. This affordability is primarily driven by the state’s low housing costs. The median home price in Mississippi is $149,300, and the average rental price for a two-bedroom apartment is $886 per month.
The state’s low cost of living extends to other expenses as well, with groceries costing 10%, and healthcare costs coming in at 11%. Mississippi has one of the lowest average gas prices in the country, making it an affordable place to live for those who rely on cars for transportation.
Mississippi’s affordability is also due to its low taxes, with no state income tax and low property taxes. The state’s sales tax rate is 7%, but local taxes can increase the rate to as high as 10.25% in some areas. However, the state’s overall tax burden is still lower.
Despite its affordability, Mississippi has some challenges, including a high poverty rate and low median household income. However, for those looking for an affordable place to live, Mississippi offers a low cost of living, low taxes, and a variety of recreational opportunities, including access to the Gulf of Mexico and numerous state parks.
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8- Missouri
Missouri stands out as the 8th most affordable state to live in the US. The state’s affordability is underscored by various factors, including its low housing costs and stable economy. The median price for a single-family home in Missouri is $198,199, and the average rent for a two-bedroom apartment is $995 per month.
Missouri offers a cost-effective standard of living, with groceries and transportation costs less than some other states. Missouri also maintains a poverty rate slightly lower than the national average and boasts one of the lowest unemployment rates in the country at 2.5%.
Missouri’s affordability extends to utilities and healthcare costs, making it an attractive option for individuals and families looking to manage their expenses effectively. The state’s emphasis on providing a reasonable cost of living, combined with its economic stability and diverse job opportunities, solidifies its position as the cheapest state to live in the US.
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9- Oklahoma
Oklahoma is also considered one of the cheapest states to live in the US. The state’s affordability is primarily driven by its low housing costs. The median home price in Oklahoma is $171,057, and the average rent for a two-bedroom apartment is $999 per month.
In addition to low housing costs, Oklahoma offers affordable groceries and utilities, with prices below the national average. Oklahoma’s poverty rate is slightly higher than the national average, but the state’s unemployment rate is lower than the national average, indicating a strong job market.
Oklahoma’s tax burden is also low, with no state income tax and low property taxes. However, the state’s sales tax rate is relatively high, at 7%, but local taxes can increase the rate to as high as 10.25% in some areas.
Despite its affordability, Oklahoma has some challenges, including a high poverty rate and low median household income. However, for those looking for an affordable place to live, Oklahoma offers a low cost of living, low taxes, and a variety of recreational opportunities, including access to the great outdoors and cultural attractions.
10- West Virginia
West Virginia is the cheapest state to live in the US due to its low cost of living. This affordability is primarily driven by the state’s low housing costs and other economic facilities. The median home price in West Virginia is $155,400, and the average rent for a two-bedroom apartment is $930 per month.
In addition to low housing costs, West Virginia offers affordable utilities. Despite the low cost of living, the poverty rate in West Virginia is the second-highest in the nation, with nearly 20% of residents living in poverty.
West Virginia’s affordability extends to healthcare costs, which are slightly above the national average, but still more affordable than many other states. The state’s tax burden is also low, with no state income tax and low property taxes.
West Virginia has some challenges, including a high poverty rate and low median household income. However, for those looking for an affordable place to live, West Virginia offers a low cost of living, low taxes, and a variety of recreational opportunities, including access to the great outdoors and cultural attractions.
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11- Kentucky
Kentucky is one of the cheapest states to live in the US in 2024 and its affordability is primarily driven by its low housing costs. The median home price in Kentucky is $194,848, which has increased by 4.3% since last year. However, cheaper housing options are still available in cities like Maysville, Williamsburg, and Monticello, where houses can be found for between $90,000 and $140,000 and median rent in Kentucky is ~$1,290 across the state.
Kentucky’s affordability also extends to other areas, with lower taxes, affordable healthcare, and cheaper rentals. The state maintains a current 4.5% tax rate for all residents and allows itemized and certain income-reducing deductions.
The state’s affordability has attracted an influx of people, with an annual population growth of 3.8% since 2010. The state’s rental market reflects its size and diversity, with a steady population and strong demand for affordable rentals. The average rent in Kentucky is $795 per month, compared to $2,016 nationwide.
12- Texas
Texas emerges as the most affordable state to live in the US due to its low cost of living. The median home price in Texas is $293,824, which has decreased by 1.2% since last year. However, cheaper housing options are still available in cities like Brownsville, Abilene, and Wichita Falls, where houses can be found for between $175K and $250K.
The Texas Constitution forbids personal income taxes, and healthcare in cities like Brownsville is up to 6% lower than the state average. Rent prices in Texas are also lower with the average one-bedroom apartment costing $795 per month.
The state’s affordability has attracted a diverse population since 2010. Its rental market reflects its size and diversity, with a steady population and strong demand for affordable rentals. The average rent in Texas is $935 per month.
Conclusion
These states collectively offer a diverse range of affordable living options, with lower housing costs, favorable tax structures, and accessible healthcare contributing to their overall affordability. The cost of living in these states makes them attractive destinations for individuals and families looking to stretch their budgets without compromising on quality of life. From affordable housing to lower taxes and healthcare expenses, these states present cost-effective living arrangements for everyone.
FAQs
1- What makes these States so Affordable?
Affordable housing, lower taxes, and cheaper groceries, utilities, and transportation costs contribute to their affordability.
2- What is the Quality of life like in these States?
Quality of life varies, with some states having lower poverty rates and better education systems. It’s essential to research every aspect and visit the state before making a decision.
3- Which is the Most Expensive State in the US?
Hawaii comes on top when we talk about the most expensive states to live in the United States in 2024.
4- Which Part of California is the Cheapest?
Bakersfield, Chico, Clovis, Eureka, Fontana, Fresno, and Sacramento are some of the cheapest areas to live in California.
5- What is the Most Peaceful US State?
Vermont is the most peaceful state in the US in 2024, with a safety score of 68.79.
