11 Most Affordable States to Live: Cost of Living 2023
The cost of living is a significant factor when considering where to live in the United States, so looking at the most affordable statesto live is a great option.
Depending on your budget and lifestyle, some states may be more affordable than others and vice versa.
But if you are searching for a new state to call home to make the most of your dollars, I’ve got you covered; I’m going to show you the most affordable states to live in America.
The USA is the 26th most expensive country to live in the World, but some states are cheaper to live in, so in some states, your hard-earned money will go a lot further than in others.
Below are the eleven most affordable states to live in the United States, based on the cost of living indices, along with other ranking factors.
How did I identify the states on this list?
I gathered the information for the cost of living index, which is published by the council for community and economic research.
The numerical data collected in this article is from this source; you can visit the website here.
The cost of living index provides several data points that compare things we all use to survive in our daily lives.
Things such as utility cost, median income, average rent, transportation, grocery costs, and healthcare costs, as well as living wage and personal income considerations.
It looks at all of the data that makes up our lives.
The average mark is 100, so anything below 100 is considered cheaper than average, and anything above 100 is more expensive than average across the USA.
The 10 Cheapest States to Live in 2023.
Mississippi…Is there any other state more interesting?
It’s the home of blues, jazz, literature, and some of the most visually stunning vistas in the United States. From Natchez to Vicksburg and Jackson to Hattiesburg, Mississippi offers enough charm and variety to satisfy anyone’s appetite. And the cost of living in Mississippi reflects these charms.
The average cost of living index is 84.5, meaning it’s 15.5% cheaper than the national average of 100 and comes in first as the cheapest state to live in in the whole of the USA.
In terms of affordability, you’ll find that everything from food to housing is typically more affordable here compared to other states. Plus, there are no state income taxes!
And don’t forget all the great music festivals and attractions throughout the year!
Mississippi In Numbers:
Cost of Living Index: 84.5 Grocery: 91.9 Housing: 68.5 Utilities: 88.5 Transportation: 92.6 Health: 99.5
Oklahoma is both a state and an experience. It might not have the most stunning skyline or recognizable landmarks, but it certainly has its own unique offerings.
With lush green forests, expansive fields of wildflowers, and sweeping views from thunderous mesas, it’s a place that welcomes you with an undeniable spirit.
From the soft drawl of Southern accents in Tulsa to the twangy country tunes sung in Oklahoma City, Oklahoma is undeniably filled with culture.
In addition to its unique character, Oklahoma is also an excellent place to live due to its commitment to economic development and affordability.
With one of the nation’s lowest cost of living index scores at 86.7 (with 100 being the national average), according to the Council for Community and Economic Research, Oklahoma offers incredible value for those looking to call this state home.
From no personal income tax on purchases made here, low housing costs, and a sales tax rate of just 4.5%, you can rest assured that your finances won’t take too big of a hit when you move here!
So, look no further than Oklahoma if you’re looking for a place with a rich history, culture-filled towns, and budget-friendly living.
Oklahoma in Numbers:
Cost of Living Index: 86.7 Grocery: 94.7 Housing: 72.4 Utilities: 95.0 Transportation: 91.4 Health: 91.5
Alabama is tough to beat, with its unique atmosphere and plenty of character.
There is plenty to love about the Yellowhammer State, whether it’s their legendary football teams at the University of Alabama or the wild ocean waves just a few hours away on the Gulf Coast beaches.
Alabama is a great place to live if you’re looking for a low cost of living.
The state has one of the lowest average household incomes in the nation, and it’s also one of the most affordable states regarding housing costs.
In addition, Alabama doesn’t have a sales tax, which helps lower your expenses.
So why is Alabama so affordable?
There are several reasons: first, the state has a relatively low cost of living. Housing costs are especially reasonable, and there’s no sales tax.
Second, Alabama is a big state with plenty of open space; there’s more room for homes and businesses to expand without driving up prices.
Finally, the economy in Alabama is diversified;. At the same time, agriculture is still a very important part of the economy, and the state also has a strong manufacturing sector.
This helps keep unemployment rates low and wages high. So if you’re looking for an well priced place to call home, consider Alabama!
Alabama in Numbers:
Cost of Living Index: 87.1 Grocery: 98.2 Housing: 68.2 Utilities: 100.2 Transportation: 88.1 Health: 89.5
When it comes to charm, Kansas definitely doesn’t disappoint.
From its wild prairies and soaring mountains to its friendly small towns and bustling cities, there’s something for everyone in the Sunflower State.
Kansas is a great place to live if you’re looking for a low cost of living.
The state again has one of the lowest average household incomes in the nation, and it’s also one of the most affordable states regarding housing costs.
In addition, again, Kansas doesn’t have a sales tax, which helps keep your expenses even lower.
Kansas in Numbers:
Cost of Living Index: 87.3 Grocery: 94.3 Housing: 72.0 Utilities: 98.7 Transportation: 96.3 Health: 101.1
If you’re looking for a charming Midwestern state to call home, look no further than Iowa.
This state is full of small towns with friendly people, and the cost of living is very affordable. In addition, Iowa doesn’t have a sales tax, which helps lower your expenses.
However, it’s important to remember that cost of living varies from city to city within the state. For example, Des Moines is significantly more expensive than Cedar Rapids or Sioux City. So be sure to research your desired location before making any final decisions.
Iowa In Numbers:
Cost of Living Index: 88.2 Grocery: 98.0 Housing: 70.6 Utilities: 95.5 Transportation: 95.4 Health: 98.9
Georgia is a great place to live if you’re looking for a low cost of living.
The state has one of the lowest average household incomes in the nation, and it’s also one of the most affordable states regarding housing costs. In addition, Georgia doesn’t have a sales tax, which again helps lower your expenses.
Finally, the economy in Georgia is diversified;. At the same time, agriculture is still an important part of the economy, and the state also has a strong manufacturing sector. This helps keep unemployment rates low and wages high. So Georgia is a great option for low cost living.
Georgia in Numbers:
Cost of Living Index: 88.9 Grocery: 96.4 Housing: 77.7 Utilities: 90.0 Transportation: 89.4 Health: 96.5
The Buckeye State is charming, from its wild prairies and soaring mountains to its friendly small towns and bustling cities.
Ohio is a great place to live if you’re looking for a low cost of living. The state has one of the lowest average household incomes in the nation, and it’s also one of the most affordable states regarding housing costs
However, it’s important to remember that Ohio has some of the higher foreclosure rates in the USA, so this is worth keeping an eye on.
Remember that cost of living varies from city to city within the state too.
For example, Columbus is significantly more expensive than Cincinnati or Cleveland. So be sure to research your desired location before making any final decisions.
Ohio In Numbers:
Cost of Living Index: 89.4 Grocery: 100.8 Housing: 71.1 Utilities: 92.4 Transportation: 95.6 Health: 94.4
8- West Virginia.
West Virginia is full of wild and wonderful surprises, from the rolling hills of the Appalachian Mountains to its sparkling rivers. Its cities are bustling with art and culture, while its small towns offer a taste of traditional Americana.
The state’s scenic byways wind through forests and farms, leading you to unexpected views around every corner.
West Virginia is situated in the Appalachian region of the USA. It’s known for its natural beauty, rolling hills and mountains, and diverse economy.
The cost to live in West Virginia is pretty low, making it a perfect option for those looking to save money.
The average cost of rent for a one-bedroom apartment is just $650 per month, which is a lot lower than the national average of $1,010.
Additionally, there are no state income taxes in West Virginia, which helps lower your expenses.
Another big expense when moving somewhere new is food costs. In West Virginia, however, food costs are also relatively low.
The average price of groceries is just $245 per month, much lower than the national average of $300 per month.
And again, because there are no state income taxes in West Virginia, you’ll be able to keep more money in your pocket each month.
West Virginia In Numbers:
Cost of Living Index: 89.8 Grocery: 96.3 Housing: 76.9 Utilities: 91.7 Transportation: 104.7 Health: 97.1
There are many reasons why Missouri is a great place to live. One of the main benefits is that the cost of living is quite low compared to other states.
Additionally, plenty of job opportunities are available, and the economy is strong. Missouri also has a great climate, with plenty of sunshine and mild temperatures throughout the year.
Plus, there are a number of fun and exciting things to do in Missouri, from hiking and biking in the state parks to exploring St. Louis and Kansas City.
However, it’s important to remember that cost of living varies from city to city within the state as with the other states. For example, St. Louis is significantly more expensive than Kansas City or Springfield. So be sure to research your desired location before making any final decisions.
Missouri In Numbers:
Cost of Living Index: 90.1 Grocery: 96.8 Housing: 80.4 Utilities: 94.2 Transportation: 97.8 Health: 91.2
Indiana is a great place to live for many reasons. The cost of living is affordable, the job market is strong, and there are numerous great things to do in the area.
The cost of living in Indiana is much more affordable than in other states. This makes it possible for people to live comfortably without breaking the bank.
The job market in Indiana is strong. There are many opportunities for people to land work that fits their skills & interests.
This makes it easy for people to find work that they love and pays well.
There are numerous things to do in Indiana. From hiking and camping in the wilderness areas to going out on the town in Indianapolis, there is something for everyone to enjoy. This means that people never have to be boredom and always have something to do.
However, again, it’s important to remember that cost of living varies from city to city within the state. For example, Indianapolis is significantly more expensive than Fort Wayne or Evansville. So be sure to research your desired location before making final decisions about moving to Iowa.
Indiana In Numbers:
Cost of Living Index: 90.2 Grocery: 94.5 Housing: 76.8 Utilities: 107.6 Transportation: 94.8 Health: 97.5
So, should you relocate to a state with a lower cost of living?
Absolutely! Moving to a state which has a lower cost of living can be beneficial for many reasons, including saving money on housing costs and taxes.
Kansas is an excellent example of a state that offers attractions and low living costs along with the others on the list.
Other states with a lower cost of living scores include Nebraska, Wyoming, Arkansas, Michigan, and Tennessee.
Each state has a unique charm—outdoor adventures, plenty of cultures, and amazing local cuisine.
Before deciding to move to any particular place, research it thoroughly though.
You’ll find something special in each one!
I hope you enjoyed reading about the most affordable states in the USA.
Lee, now the author of Learn Life Money, has started businesses in various industries such as E-commerce to social media marketing. He is an award-winning entrepreneur having received awards from Dragons Den Theo Paphitis, and winning awards for the fastest-growing social media marketing agency in 2019, You can read his full story here. Lee helps people to start and scale their businesses using their knowledge and experience. He has a passion is to help others achieve the success he has achieved and wants to help people pave their path to financial freedom from making the right decisions with money to starting their own businesses.