10 Cheapest Places to Live in the United States (2024)

by thebestworldevents.com 12 March 2024 · Property Investment

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Are you looking for a place to live where your money can go further? If so, you may want to consider relocating to one of the cheapest states in the United States. These states offer a low cost of living, including affordable housing, groceries, transportation, and utilities. This can make it easier to save money and achieve your financial goals.

10 Cheapest Places to Live in the United States: Most Affordable States

Here are the top 10 cheapest states to live in the United States in 2024:

Mississippi
Kansas
Alabama
Oklahoma
Georgia
Tennessee
Missouri
Iowa
West Virginia
Indiana

These states offer a variety of benefits to residents, including:

Low housing costs: The median home price in the cheapest states is significantly lower than the national average. This makes it easier for first-time homebuyers to purchase a property and for homeowners to build equity.
Affordable groceries and utilities: The cost of groceries and utilities is also lower in the cheapest states. This can free up more of your income to spend on other things, such as savings, investments, or leisure activities.
Low taxes: Many of the cheapest states have low taxes, including income tax, property tax, and sales tax. This can save you money each year and help you keep more of your hard-earned income.
A variety of job opportunities: The cheapest states offer a variety of job opportunities in a variety of industries. This makes it easier to find a job that matches your skills and interests.
A good quality of life: The cheapest states offer a good quality of life, with access to good schools, healthcare, and amenities. This makes them a great place to raise a family or retire.

Based on data released by Worldpopulationreview.com, the United States is the world’s 26th most expensive country to live in. However, the cost of everyday expenses varies widely from state to state.

Let us take a closer look at the top 10 cheapest states to live in the United States and examine the factors that make them so affordable. We will consider the cost of housing, groceries, utilities, taxes, job opportunities, and quality of life in each state.

Rank	State	Cost of Living Index
1	Mississippi	83.3
2	Kansas	86.5
3	Alabama	87.9
4	Oklahoma	87.9
5	Georgia	88.8
6	Tennessee	89.0
7	Missouri	89.8
8	Iowa	89.9
9	Indiana	90.5
10	West Virginia	90.6

1. Cost of Living Mississippi

Mississippi is the cheapest state to live in the U.S., with a Cost of Living Index of 83.3. Let’s delve into the specifics:

Groceries: 92.2
Housing: 66.3
Utilities: 90.4
Transportation: 86.7
Health: 94.7
Miscellaneous: 90.9

Housing in Mississippi is particularly affordable, with a housing index of 66.3, the lowest in the country. The median price for a single-family home in the state is $140,818, and the average rent for a two-bedroom apartment is $991. Additionally, transportation costs are the lowest in the nation.

The living wage in Mississippi for a family of four is $80,523, while the median income for a family of four is $70,656. Despite the low cost of living, the poverty rate in Mississippi is the highest in the nation, with nearly 20% of Mississippi residents living in poverty. Mississippi is consistently ranked as one of the worst states to live in.

2. Cost of Living in Kansas

Kansas presents itself as the second-most cheapest state in terms of cost of living, with a Cost of Living Index of 86.5. This data is derived from worldpopulationreview.com. Here’s a breakdown of key factors:

Groceries: 91.7
Housing: 72.6
Utilities: 100.2
Transportation: 97.3
Health: 100.4
Miscellaneous: 88.4

Housing costs in Kansas are notably affordable, ranking third-lowest in the country and standing at 28% below the national average. 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. Moreover, both groceries and transportation costs are lower than the national average.

Providing a decent standard of living, the living wage in Kansas for a family of four amounts to $76,252.80 annually. The median income for a family of four is $72,815. Kansas maintains a poverty rate slightly lower than the national average and boasts one of the lowest unemployment rates in the nation, at 2.5%.

3. Cost of Living in Alabama

Alabama holds the position as the third most affordable state in the United States, boasting a Cost of Living Index of 87.9. This data is sourced from worldpopulationreview.com. Key cost components are outlined below:

Groceries: 98.2
Housing: 70.1
Utilities: 100.7
Transportation: 92.7
Health: 91.2
Miscellaneous: 94.3

Housing costs in Alabama are notably affordable, being below the national average. The average price for a single-family home in Alabama stands at $194,695, while rent for a two-bedroom apartment averages $1,005 across the state. Furthermore, health and transportation costs in Alabama are among the lowest in the nation, offering additional affordability.

To sustain a reasonable standard of living in Alabama, a family of four necessitates an annual income of $77,064. Meanwhile, the median income for a family of four annually amounts to $54,393. However, Alabama grapples with a high poverty rate, with 15.6% of its residents living at or below the poverty line.

4. Cost of Living in Oklahoma

Oklahoma secures its position as the fourth most affordable state in the United States, boasting a Cost of Living Index of 87.9. Data utilized is from worldpopulationreview.com. Here’s an analysis of key cost aspects:

Groceries: 94.5
Housing: 74.7
Utilities: 95.1
Transportation: 94.8
Health: 94.5
Miscellaneous: 92.6

Housing prices in Oklahoma are notably affordable, standing at 25% below the national average and ranking fourth lowest in the country. The median home price is $171,057, while rents average $999 per month. Additionally, groceries and healthcare expenses in Oklahoma are among the lowest in the nation.

For a family of four in Oklahoma, the median income amounts to $52,341 annually. However, the living wage for the same family is $77,126.40 yearly. This disparity contributes to Oklahoma having one of the highest poverty levels in the nation, with 15% of residents living at or below the poverty line. For children, the poverty rate is nearly 20%. Oklahoma consistently ranks as one of the worst states to live in.

5. Cost of Living in Georgia

Georgia claims the fifth spot as one of the most cheapest states in the United States, presenting a Cost of Living Index of 88.8. This data has been sourced from worldpopulationreview.com. Let’s explore the essential cost elements:

Groceries: 95.9
Housing: 74.4
Utilities: 90.5
Transportation: 92.6
Health: 96.7
Miscellaneous: 97.1

Housing expenses in Georgia are notably economical, ranking fourth lowest in the nation and being 25% below the national average. Transportation costs are also among the lowest in the country, further adding to the state’s affordability. Utility costs average $367.63 per month.

Despite having the nation’s lowest minimum wage at $5.15 an hour, salaries in Georgia generally suffice to cover living costs. The median income for a family of four in Georgia is $58,952 per year, while the cost of living is $79,955.20.

6. Cost of Living in Tennessee

Tennessee secures its position as the sixth most affordable state in the United States, presenting a Cost of Living Index of 89.0. This data is obtained from worldpopulationreview.com. Let’s delve into the essential cost factors:

Groceries: 94.7
Housing: 79.3
Utilities: 92.5
Transportation: 88.8
Health: 91.2
Miscellaneous: 94.2

Housing costs in Tennessee are notably affordable, standing at 21% below the national average. The typical single-family home costs $276,963, and an average two-bedroom apartment rents for $1,138 a month. Moreover, Tennessee boasts the nation’s second-lowest transportation costs and fifth-lowest healthcare costs. Utilities typically cost a household $256.83 a month.

To maintain a reasonable standard of living, a family of four in Tennessee needs an annual income of $74,692.80. The median income for the same family is $54,665. Tennessee holds an unemployment rate of 3.4%, while the poverty rate stands at 13.8%.

7. Cost of Living in Missouri

Missouri stands as the seventh most economical state in the United States, boasting a Cost of Living Index of 89.8. The data is sourced from worldpopulationreview.com. Let’s dissect the critical cost components:

Groceries: 95.0
Housing: 80.3
Utilities: 95.4
Transportation: 92.4
Health: 94.6
Miscellaneous: 93.3

Housing prices in Missouri are notably affordable, being 20% below the national average. A typical single-family home in the state is priced at $218,208, and the average rent for a two-bedroom apartment stands at $963 per month. Additionally, utilities cost an average of $363.80 per month. Missouri’s cost of living index is below the national average across all metrics, particularly in health and transportation.

To sustain a reasonable standard of living, a family of four in Missouri needs an annual income of $77,792. The median income for a family of four is $61,901. Remarkably, Missouri maintains a minimum wage of $11.15 an hour, one of the highest in the country.

8. Cost of Living in Iowa

Iowa secures its position as the eighth most affordable state in the United States, presenting a Cost of Living Index of 89.9. This data is based on information from worldpopulationreview.com. Here’s an overview of key cost components:

Groceries: 98.4
Housing: 76.0
Utilities: 94.9
Transportation: 97.7
Health: 94.6
Miscellaneous: 93.3

Housing costs in Iowa are remarkably affordable, standing at the sixth-lowest index in the nation. A typical single-family home averages $183,418, while the average rent for a two-bedroom apartment is $895 per month. Furthermore, utility costs for an average household amount to $336.24 monthly. Notably, Iowa’s cost of living is lower than the national average across all metrics.

To maintain a reasonable standard of living, a family of four in Iowa requires an annual income of $76,440. However, the median income for the same family is $68,469. The poverty rate in Iowa is 9.1%, lower than the national average.

9. Cost of Living in West Virginia

West Virginia secures its position as the ninth most economical state in the United States, presenting a Cost of Living Index of 90.5. The data utilized is from worldpopulationreview.com. Here’s an analysis of key cost elements:

Groceries: 96.5
Housing: 78.6
Utilities: 89.4
Transportation: 92.2
Health: 88.1
Miscellaneous: 99.7

Housing expenses in West Virginia are notably economical, ranking ninth lowest in the nation. A typical single-family home in the state costs $129,103, while rents average $732 per month. Moreover, both transportation and healthcare costs are among the lowest in the nation. However, West Virginia grapples with economic challenges, low educational outcomes, and infrastructural needs, earning its position as one of the worst states to reside in.

For a family of four in West Virginia, the median income amounts to $51,615 annually. However, the living wage for the same family is $76,273.60 per year. West Virginia contends with the nation’s fourth-highest poverty rate, affecting 16% of its residents.

10. Cost of Living in Indiana

Indiana claims its position as the tenth most affordable state in the United States, boasting a Cost of Living Index of 90.6. The data utilized for this analysis is sourced from worldpopulationreview.com. Let’s examine the crucial cost components:

Groceries: 92.7
Housing: 78.3
Utilities: 99.0
Transportation: 98.3
Health: 94.6
Miscellaneous: 96.8

Housing costs in Indiana are notably affordable, ranking eighth lowest in the nation. The average price for a single-family home is $210,166, while the average rent for a two-bedroom apartment is $1,016 per month. Additionally, utility costs are just below the national average. Moreover, both healthcare and transportation costs in Indiana are among the lowest in the nation.

To maintain a reasonable standard of living, a family of four in Indiana needs an annual income of $76,398.40. The median income for the same family is $66,360. Overall, Indiana presents average costs that are 10% lower than the national average, and costs in all categories are below the national average.

What Makes the Cheapest States So Affordable?

There are a number of factors that contribute to the low cost of living in the cheapest states in the United States. These factors include:

Lower housing costs: Housing is the largest expense for most Americans, and it is significantly cheaper in the cheapest states. The median home price in Mississippi, the cheapest state in the country, is just $145,000. This is compared to the national median home price of $428,700.
Lower property taxes: Property taxes are also lower in the cheapest states. The average effective property tax rate in Mississippi is 0.62%, compared to the national average of 1.07%.
Lower sales taxes: Sales taxes are also lower in the cheapest states. The average sales tax rate in Mississippi is 7%, compared to the national average of 6.6%.
Lower-income taxes: Income taxes are lower in some of the cheapest states, but they are higher in others. Mississippi, for example, has no state income tax, while Oklahoma has a flat state income tax rate of 4.5%.
Lower cost of groceries and utilities: The cost of groceries and utilities is also lower in the cheapest states. The average household in Mississippi spends $3,122 on groceries and $3,921 on utilities each year. This is compared to the national average of $3,404 on groceries and $4,315 on utilities.

In addition to the factors listed above, the cheapest states also tend to have lower wages. This is because the cost of living is lower, so businesses do not need to pay their employees as much to attract and retain talent. However, the lower wages are often offset by the lower cost of living.

Other Factors to Consider

In addition to the cost of living, there are a number of other factors to consider when choosing a place to live. These factors include:

Job opportunities: Do the cheapest states offer good job opportunities in your field?
Quality of life: Do the cheapest states offer a good quality of life, with access to good schools, healthcare, and amenities?
Climate: Do the cheapest states have a climate that you find enjoyable?

It is important to weigh all of these factors when choosing a place to live. The cheapest states may not be the best choice for everyone, but they can be a great option for people who are looking to save money and improve their quality of life.

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