Cheap States to Live in U.S, Which State Has the Lowest Cost of Living?

What Are the Cheap States to Live in the U.S.?

The top 10 most affordable states for 2023, emphasizing factors such as housing costs, transportation, and healthcare expenses. It aims to assist readers in making informed decisions regarding budget-friendly living and potential relocation. Here is the list of the Cheap States to Live in the U.S.

1. Mississippi

Mississippi is renowned for having the lowest average housing costs and transportation costs in the nation. The state offers warm weather, mild winters, and a variety of inexpensive Southern comfort foods. However, it faces challenges such as the highest poverty rate in the country, economic concerns, and fewer job opportunities.

2. Kansas

Kansas secures its position as the second cheapest state with affordable housing costs, ranking third nationally. The state boasts a low unemployment rate and is celebrated for its barbecue culture. However, it faces challenges like frequent tornadoes and extreme droughts.

3. Alabama

With a cost of living index score of 87.9, Alabama ranks third for overall affordability. The state features housing costs significantly below the national average and is known for its proximity to the Gulf Coast. However, Alabama contends with challenges like a subpar healthcare system and restrictions on alcohol consumption.

4. Oklahoma

Oklahoma holds the fourth spot, with housing costs 25.3% below the national average. The state excels in affordability across healthcare, groceries, and housing. While it experiences all four seasons, it contends with challenges such as tornadoes and a struggling education and healthcare system.

5. Georgia

Georgia ranks fifth with considerably lower-than-average housing costs and utility expenses. With a diverse natural landscape and proximity to urban centers like Atlanta, Georgia is deemed a fun state to live in. However, it faces challenges like allergy-producing plants and hot, muggy summers.

6. Tennessee

As the sixth cheapest state, Tennessee offers housing costs 20.7% below the national average and stands out for having no state income tax on earned wages. The state has a rich musical history and a penchant for whiskey. Challenges include a high poverty rate and increased traffic due to rapidly expanding cities.

7. Missouri

Missouri secures the seventh spot with an overall cost of living index score of 89.8. The state features housing costs 19.7% below the national average, a high minimum wage, and a good job market. Challenges include relatively high crime rates in urban centers and hot summers with frequent tornadoes.

8. Iowa

Iowa, the eighth cheapest state, has a cost of living index score of 89.9. Notable for housing costs 24% below the national average, Iowa boasts a highly-ranked education system and is home to the Ice Cream Capital of the World. Challenges include incredibly cold winters and the absence of mountains or beaches.

9. West Virginia

Ranking ninth, West Virginia has a cost of living index score of 90.5. The Appalachian State offers affordable housing costs and a beautiful landscape. Challenges include a challenging job market, high poverty rates, and frequent listings as one of the worst states to live in.

10. Indiana

Indiana rounds out the top 10 with a score of 90.6. While offering expenses below the national average, Indiana's main appeal lies in its affordable housing costs. Challenges include cold winters, being perceived as being a bit boring and facing high rates of drug addiction and overdoses.

Which State Has the Lowest Cost of Living?

Mississippi holds the title for the state with the lowest cost of living in the United States. With a Cost of Living Index of 83.3 and a median home price of $140,818, Mississippi stands out for its exceptionally affordable housing costs and transportation expenses.

Despite economic challenges and a higher poverty rate, the state's warm climate, mild winters, and a variety of inexpensive Southern comfort foods contribute to its reputation as the most budget-friendly state for residents in terms of overall living expenses.

Unlock Travel finance secrets with MarketsHost, and explore the world confidently with financial wisdom and guidance.

What is the Cost of Living?

The cost of living is the aggregate amount of money required to cover basic living expenses in a specific location, encompassing housing, utilities, transportation, healthcare, and groceries. To facilitate cross-location comparisons, a cost of living index is generated by compiling data on these main living expenses. This index sets the national average monthly cost to 100, allowing for a relative assessment of living costs across states or cities.

The average American household spends about $5,111 on living expenses each month, totaling approximately $61,334 annually, according to data from the U.S. Bureau of Labor Statistics. While the cost of living index is a useful benchmark, it is essential to consider additional factors such as average salaries, economic conditions, employment rates, and housing availability when evaluating the overall affordability and desirability of a particular location.

What is the Cheapest State to Live in As a Single Person?

The cheapest state to live in as a single person is Mississippi. With a cost of living index score of 83.3, it offers the lowest average housing costs in the nation, at 33.7% below the national average, making it an affordable choice for individuals.

Despite economic challenges and a higher poverty rate, Mississippi's warm weather, mild winters, and a variety of inexpensive Southern comfort foods contribute to its appeal for single individuals seeking budget-friendly living. However, potential residents should be aware of challenges such as economic concerns, fewer job opportunities, and a struggling education system.