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Originally Posted On: https://www.ezhomesearch.com/blog/what-are-the-cheapest-states-to-live-in/
What Are the Cheapest States To Live In?
Plenty states offer great value without sacrificing strong job markets, education opportunities, or beautiful scenery. If you’re solely concerned about which states have the absolute best cost of living, you’re in luck. We’ve scoured multiple independent lists on housing affordability, cost of living, median incomes, and affluence to find the top ten states where your dollar stretches a little further. Hint: many are in the American South or the Midwest.
So before you make that big move this year, take a closer look at these ten cheapest states!
Mississippi
Nearly every list we analyzed had Mississippi real estate right at the top for affordability. In the third quarter of 2022, the overall cost of living sat at 15% below the national average. Every single expenditure was below average, with the housing expenses 32% below.
The median home sale price in November 2022 was $245,700, up 5.4% year-over-year (YOY). Still, that’s well below the $370,700 national median from the National Association of Realtors. Places like Ocean Springs, Horn Lake, and Hernando had double-digit price growth but were still affordable municipalities.
According to the US Census, residents had a median household income of $49,111, but remember, it’s a lower cost of living. You can still make ends meet nicely here.
Besides the lowest cost of living, Mississippi residents have perks like a warm climate, beautiful rural and waterfront scenery, and lower higher education costs. The state’s bounty includes fresh seafood, agriculture, and root beer.
West Virginia
Coming in second on our cheapest states list is properties in West Virginia, and it’s no surprise since its cost of living scores nearly 21% below the US average. While health care did exceed the national median rate, housing was a whopping 60% below average!
The median sale price was $280,500 in November 2022, up 6.3% year-over-year. Cities like Shannondale, Harpers Ferry, and Inwood saw much action in the real estate market.
According to the US Census, the economy is performing better here, with a median household income of $50,884. Mining and manufacturing remain linchpins of the state’s economy, but the service industry is also a top employer.
But there’s more to West Virginia than just affordability. Locals enjoy the best of four seasons while living in charming small “large” cities and towns. It’s bursting with natural beauty, from waterfalls and rocky cliffs to rolling hills and lush forests. People come from all over to flyfish or whitewater its rivers, hunt and hike its forests, and climb its peaks.
Indiana
Next up is Indiana. Its cost of living in the third quarter of 2022 was 10% below the national average. Utilities were a bit higher, but housing 23% under the US average helps to compensate. So do the lower costs for groceries and transportation.
Its median home sale price in November 2022 was $235,500, which can be considered relatively affordable compared to other states. It also boasts a median household income of $61,944. Manufacturing employs the highest percentage of the workforce, but other key industries include logistics, information technology, agribusiness, and–surprise!–sports.
This cheapest state earned points for its stunning scenery too! From blooming flowers in rolling hillsides to miles of sandy beaches along the Great Lakes, Indiana has plenty of recreational space. Another bonus: it’s a top ten state for childhood education, according to US News and World Report.
In cities like Fort Wayne, South Bend, and Indianapolis, you’ll find great restaurants, lively entertainment venues, exciting sports teams, and street festivals throughout the year. Plus, it has one of the nation’s lowest taxes on corporate profits, meaning you should look closer if you’re considering starting a business.
Kansas
Kansas might just be the place if you’re looking for a place to settle down with wide-open spaces. With the cost of living in Kansas 13% below the national average and housing costs even lower at 28%, you can stretch your dollar in this midwestern state.
The real estate market has been rising in this cheapest state; the median sale price was $261,700 in November 2022, an 8.3% YOY increase. The median household income here sits at $64,521. Key industries are agriculture, bioscience, advanced manufacturing, energy, and logistics.
Kansas also offers plenty of outdoor fun, from hiking trails and prairie parks to lake activities like fishing and boating. You can also explore the underground world of caves, take a scenic drive along winding country roads, or visit one of the many restored historic sites across the state. And if you want a more urban lifestyle, why not explore Kansas City and Wichita, where you’ll have music venues, arts and culture, and without big-city crowding.
Oklahoma
Around four million Oklahoma residents enjoy a cost of living 13% below and housing 27% below the national average. Oklahoma’s average cost of living was $34,533 per year in 2021, making it the cheapest in the southwest and the third most affordable in the US that year.
The real estate market is inexpensive here, with a November 2022 median sale price of $234,600, a 5.3% YOY growth rate. However, note that appreciation tends to be slower in this state.
In terms of economy, Oklahoma’s median household income is $56,956. It relies heavily on mineral production, machinery, and transportation.
Oklahoma provides plenty of outdoor fun, from wide open plains to rocky mountains and breathtaking waterfalls. Plus, its capital city – Oklahoma City – is home to some of the region’s most vibrant shopping, dining and entertainment venues.
Alabama
If you can handle the heat and humidity, why not try moving to Alabama? This cheap state boasts an overall cost of living nearly 13% below the national average as of the third quarter of 2022. Everything is below average here, from groceries to utilities to health care.
Housing costs were even lower – at 32% below average! The real estate market here had a median sale price of $264,900 in November 2022.
Alabama may have a reputation for poverty in the past, but that’s not the whole state and not as valid today with the work-from-anywhere shift in companies across the country.
Plus, the aerospace, homeland security, and automotive industries are essential here, with local companies playing a critical role in aerospace and defense craft production. Its median household income was $54,943, according to US Census data.
Alabama residents can live along the beautiful beaches of the Gulf Coast to historic towns in the Deep South. Nature lovers will enjoy exploring its rivers, lakes, and trails, while culture buffs can check out some of the southern charm found throughout the state’s cities and towns. For a hidden gem, check out Guntersville, with the 6th largest man-made lake in the world.
Georgia
Next up on our list of cheapest states is Georgia. It is 10% below the national average for its cost of living, with housing costs below the national rate by 22%. The thing about Georgia is to remember it’s a large state with a lot of diversity in its costs. If you look in the Atlanta metro, you’ll find a high cost of living and housing prices. However, the state on the whole is an affordable place to live.
The real estate market here is overall more on par with the national pricing. In November 2022, the median sale price was $348,500, but that doesn’t mean you can’t find a great deal. Places like Atlanta and Savannah push its median prices up. Still, affordable living can be found in cities like Macon, Columbus, and Augusta.
Georgia boasts a low unemployment rate; its median household income is $65,030 in 2021.
When you think of the cheapest states for outdoor fun, Georgia may not be the first one that comes to mind. However, it offers plenty of amazing things to do. Visit the sea islands along the coastline or go deep-sea fishing off the coast of Savannah.
Explore the state’s rivers and lakes by canoe or kayak. Culture lovers have art galleries and music venues scattered throughout this southern state. Atlanta is the home of the state’s professional sports teams, and towns like Blairsville in the Blue Ridge Mountains are a destination for hiking, camping, and fall leaf peeping. Want something closer to the city and rated as one of the most livable cities in America? Try Roswell.
Tennessee
Tennessee is another southern state where your dollar goes further, thanks to no state income tax! It’s the only affordable state on this list not to have an individual income tax, and that’s paired with an overall cost of living 10% below the national average. Housing costs are 16% lower.
The real estate market here is doing well, as Nashville has been listed as a hotspot for growth and appreciation for several years. Click here to see our guide to neighborhoods in Nashville.
In November 2022, the median sale price for the state was $370,800. The higher price is due to major metros like Nashville having record-high prices. Don’t worry, you can find many affordable housing options in small towns and rural areas throughout the state.
Plus, Census data shows Tennessee boasts one of the lower unemployment and poverty rates for a “cheap” state. Its median household income was $58,516 in 2021. Manufacturing, energy, and health care were among the state’s top-employing industries.
City dwellers looking for entertainment will find it in Nashville and Memphis, while adventure seekers will want to explore its mountains and forests. The Great Smoky Mountains is one of the nation’s most visited parks, but the state has miles of hiking trails, water trails, lakes, and streams. The state is the epicenter of the country music scene and, overall, has a strong musical tradition across many genres.
Missouri
The “Show Me” state will “show you the money” as one of the cheapest states with an overall cost of living 10% below the national average and housing costs even lower at 20% under! Notably, utilities and transportation are highly affordable here.
The real estate market here in Missouri has been booming recently; in November 2022, the median sale price was $236,700. The top industries are food processing, aerospace, and manufacturing. Interestingly, Forbes also listed beer as a leading industry. Missouri boasts a low unemployment rate, with its median household income at $61,043, according to the 2021 US Census data.
Missouri offers many activities, from hiking, fishing, and camping in its forests to exploring its rivers. Plus, culture buffs will find plenty of art galleries, music venues, and attractions throughout this state.
Iowa
Last on our cheapest states list is Iowa! This cheapest state has an overall cost of living 12% below the national average. Housing dropped 29% under the average!
In November 2022, the median sale price was $198,700, making it one of the most affordable on the list. This sale price was a 1% YOY drop, hinting you could find a great deal in Iowa.
Plus, Iowa placed just outside the top 10 for higher education in the US News and World Report rankings. It boasted a low unemployment rate at 3.1% in November 2022. Its median household income was $65,429 as of the end of 2021. Agriculture is absolutely key to the state economy as it supplies 1/14th of the nation’s food supply.
Iowa may not have the beaches or mountains found in other cheapest states. Still, it does offer outdoor fun, including hiking trails, camping spots, and fishing areas throughout its forests and lakes.
Living in the Cheapest States
We could go on about these cheapest states, but we’ll save some surprises for you to discover. With so many affordable options available, one is bound to fit your needs perfectly! Have fun exploring all these cheapest states have to offer, and as always, let us know how we can be a resource for your real estate needs.
