One of the biggest factors for livability is the cost of living. Essentially, people these days look for a place where they can have a decent life without spending too much.
In the United States, you have a number of choices when it comes to the place where you want to settle. And if you want to keep your expenses in moderation, you have to choose those areas that will give a lot of value to your money so that you and your family can live comfortably and adequately.
In this video, I am going to rank all the US states with the lowest cost of living.
Without further ado, let’s get started!
The average cost of living index in Indiana in 2021 is at 7, making it one of the cheapest states throughout the entire country. Meanwhile, its average home value starts at $286,000. Rental rates are pretty decent, too. For instance, a two-bedroom apartment is only $750 a month in this state.
Given that the median household income here is $57,600, it is easy to say that people here can afford their essential necessities. Moreover, Indiana boasts of having a high employment rate–ranging from career and technical jobs.
Michigan has a living index of 90.40, which is one of the lowest on our list. With that in mind, its average home price sits at $283,000 per residence, and the median annual household income is $59,500. This simply suggests that even its average residents have a roof over their heads. If you have plans to move in, you will be delighted that the average rental price in Michigan is lower than the national average.
Interestingly enough, most of the basic commodities in this state are affordable. For instance, the price of grou nd beef is just $4.43 per kilo, while milk and eggs are at $1.57 and $1.12, respectively. You can always save money here, which is great if you want to live on a tight budget.
Missouri is one of the most populated states on our list. However, its average living index remains to be low, specifically at 89.75 in 2021. Housing prices are affordable–single-bedroom apartment rents for $650 a month, as per statistics from recent years. If you are planning to buy a house, an amount of $284,000 will get you a well-structured and strategically located property.
The state’s employment rate is also doing well despite economic difficulties, particularly with regard to career and tenure jobs. The median annual household income is $57,400. With its relatively low cost of living index, there’s a guarantee that locals here have enough money to sustain their needs, have savings, and acquire some of their guilty pleasures!
Among the cities here, Springfield, St. Louis, Jefferson City, and Columbia are considered to be the cheapest. You should consider these locations first before checking other places.
Tennessee’s cost of living index is at 89.49, and the state’s median annual household income is $56,00-. While these statistics may not seem too great at first glance, it should be noted that Tennessee has been one of the fastest-growing states in terms of population and employment. Most people here work in industries such as retail and agriculture. But recently, technology-related industries are starting to bloom here, as well.
So how much does a home cost in Tennessee? According to the data given by US News, the average home price here is $307,000. Rental rates are quite affordable, too, as they go below the national average.
But of course, there are a lot of reasons why you should consider moving to Tennessee. For example, the state boasts of being both beautiful and clean. It has a dynamic economy, affordable housing units along with a great quality of education for both adults and children.
So Tennessee is an excellent choice if you want to settle in a place where your money will truly go a long way.
In 2021, Georgia’s cost of living index was at 89.30, while its rental rates started from $600 a month for two bedrooms and below. For homeowners, the average value of their residence is as low as $264,000. Of course, the average resident here can afford such expenses, given that the median annual household income is $61,900.
It is also not difficult for qualified individuals to land a job in Georgia. The unemployment rate here is at 4.1 percent as of May 2021, which is significantly lower as compared to other states in the country.
Meanwhile, the prices of basic commodities here aren’t as high as in other states. This makes it possible for the locals here to save more money from their paychecks. For instance, the price of ground beef here is at $4.52 only.
There are other perks if you decide to live in Georgia. Among these are its friendly tax rates, generally low crime rates, and high educational standards.
When it comes to the cost of living, one of the most affordable states in the country is Arkansas. An average family can live comfortably here with their average median household income of $48,900. It is cost-effective for the people living in this state to own a house because of low property taxes and local sales tax. Specifically, the average home price is $314,000, which is somewhat bearable considering that people here are earning well.
Among the most notable employers here are Tyson Foods, Baptist Health, and Wal-Mart. But you can also find high-earning positions in other companies that are operating here.
With a less than a five percent unemployment rate, Arkansas is definitely one of the top states in the country where you can find jobs easily. Also, keep in mind that the cost of living index of this state is at 89.16 as of 2021.
“Sweet Home Alabama” is definitely a perfect catchphrase for this state. After all, this place lets you experience the American Dream without spending too big. For starters, the average cost of living index of Alabama is just 88.8, which is among the lowest in the country. In the first half of 2021, its average median household income sits at $51,700, which is quite big already, especially if you are alone or just have a small family.
Meanwhile, its average home price is roughly $270,000. Hence, you can always acquire a decent home here, especially if you have steady employment or business. Of course, the employment rate in this state is quite high. Career opportunities are sprawling here, which has attracted many millennials to come and stay here.
There are appealing reasons as to why Alabama is such a good place to live in. This southern state is blessed with a lot of natural resources such as forests, wildlife, minerals, and land for agriculture. Moreover, families can comfortably afford to spend more money on the education of their children.
Read more: 9 Best Places To Live In Wyoming
Our next stop is in Oklahoma.
The median home price in Oklahoma City is $285,000, which is one of the lowest in the country. In fact, it is lower than the national average of $370,000. Moreover, there are a lot of low-cost housing options available in this state. You can even find homes for sale that are less than $100,000.
Meanwhile, the cost of education in this state is significantly lower than in other states in the United States. A college degree in the University of Oklahoma, for instance, is estimated to be only $25,000.
Furthermore, it has to emphasize that Oklahoma has a low unemployment rate. In June 2021, its unemployment rate was just 3.7%, which suggests that it has a strong job market despite the economic problems caused by the pandemic. Oklahoma has experienced an increase in its population over recent years and has been able to keep up with the demand for jobs. Many industries are also growing rapidly within Oklahoma.
By the way, its latest cost of living index is 88.09.
If you’re looking for a way of life that’s more laid back than big city living, then Kansas is the state for you. For starters, taxes in these states are downright moderate. You’ll never have problems dealing with them. It also has a super-low housing price since a decent property here has just a cost of $272,000. What does this mean? Well, in terms of the housing costs, it means that even if you want to buy a large house, you’ll be able to find a place to live with plenty of space on your budget.
Surprisingly enough, locals in Kansas earn pretty well. Its median household income in 2021 is $62,000, which allows normal families to buy stuff and spare money for savings and emergency funds. You’ll never have difficulties acquiring your basic commodities in Kansas, either. Food is pretty abundant and affordable in this area, given that it is an agricultural state.
In 2021, the cost of living index of Kansas is 86.7.
Throughout the United States, Mississippi is considered the most affordable state for many years already. Its cost of living index is just 84.1 as of 2021. Moreover, its housing cost is the cheapest in the entire country. The average home price here is only 250,000, which is perfectly matched by a median household income of $45,700.
Needless to say, living in Mississippi is a great idea. It’s affordable, and the quality of life is high. It has a low cost of living, which means that you can live well for very little money. Life in Mississippi just gets better every year. Grocery and gas prices remain inexpensive and people-friendly.
And that completes our list! Subscribe and turn on notifications so that you’ll never miss any of my videos. I’ll see you next time. Take care and stay safe!