The Top 10 U.S. Cheapest States to Live In
If you are deciding whether a move to another state is in your future, there are a lot of factors to consider. After all, the cost of living is not the same from one state to another. You need to look at housing value, the cost of food and transportation, taxes, and a number of other variables.
Of course, if you are moving for a job, you may not get to choose the state you move to, but if you have the choice, you will want to know the cheapest states to live in in the U.S. Here is our list:
1. Mississippi Cost of Living
Mississippi is the cheapest state to live in in the U.S. in virtually every way. The cost of housing is lower, energy is less expensive, and even beef is less expensive. The median price of a home in Mississippi is $128,000 and the average monthly rent on a two-bedroom apartment is $795.
Of course, along with the lowest cost of living, Mississippi also has the lowest median household income at $43,567 per year. However, if you do the kind of work that will let you live anywhere without it affecting your income, this may be the ideal move for you.
2. Oklahoma Cost of Living
Second to Mississippi when it comes to the cheapest states to live in in the U.S. is Oklahoma, where the cost of gas is often the second lowest in the U.S. You will also find energy prices are lower and the cost of bread is lower, with fields of wheat around every corner.
Housing prices are not much higher in Oklahoma, than in Mississippi, with the median cost of a house at $130,001 and the average monthly rent on a two-bedroom apartment is $879. In fact, Ponca City had the cheapest two-bedroom apartment in the entire country in 2020 at $502 per month. The median household income is also slightly higher at $46,159.
3. Arkansas Cost of Living
Arkansas comes next on the list. Housing, transportation, and healthcare all cost less than the national average. You can even get a haircut for cheaper, at $20 in Little Rock. And with the average spend on rent or mortgage payments at $708 per month, it is relatively easy to live comfortably on the median household income of $45,726.
4. Kansas Cost of Living
When it comes to Kansas, there is a reason there’s no place like home. It comes in at number four on our list, and for good reason. The cost of housing in the state is some of the lowest in the country, with the median price of a house at $137,700 and the average monthly rent on a two-bedroom apartment at $752.
On top of this, gas is relatively cheap at $2.278 per gallon (January 2020), making transportation costs low, and even taking your pet to the vet is lower than many other states. This lower cost of living is made even better by the fact that the median household income is $48,054.
5. Missouri Cost of Living
Number five on the list is Missouri, with the lowest gas prices in the country at $2.209 per gallon as of January 2020 and low housing costs on top of that. There are some parts of the state where you can get a four-bedroom home for just over $200,000. Add to this the fact that it’s cheaper to go to the movies and buy clothing and the median household income is $53,560 and you have a definite contender.
6. Georgia Cost of Living
Georgia is one of the cheapest states to live in in the U.S., particularly if you live outside the major cities like Atlanta or Savannah. The median price of a home in the state is $186,500 and the average monthly rent for a two-bedroom apartment is $958. On top of finding affordable new homes in Georgia, prospective residents will find groceries and transportation costs that are lower than the national average as well. However, energy bills are slightly higher. The median household income is $55,679.
7. Alabama Cost of Living
Alabama is another state in which housing costs are low, with a home selling for median price of $129,300 and the average monthly rent on a two-bedroom apartment at $772. You also get cheaper wine and a good mix of beaches and golf, and you will enjoy warm weather much of the year. The median annual income is $48,486.
8. New Mexico Cost of Living
The lure of New Mexico is more than just it’s arid landscape. It also boasts lower than average housing prices and energy bills and a median household income of $48,059. Those looking or a new home in New Mexico will find that the median cost of a home is $193,200 and the average monthly rent on a two-bedroom apartment is $847. But be prepared, as residents will find a wide array of home prices depending on if they are looking for a new home in Albuquerque or New Mexico’s other major metro area Santa Fe.
9. Tennessee Cost of Living
Tennessee boasts low housing costs, as well as lower than average healthcare costs. The average monthly rent on a two-bedroom apartment is $847, with rates a little higher in the bigger cities, like Nashville. For families that would prefer to buy vs. rent, there are a wide array of new homes for sale throughout Tennessee. Coupled with moderate energy costs, which match the national average and a median household income of $50,972, Tennessee can be a great place to call home.
10. Indiana Cost of Living
The final entry on our top 10 cheapest states to live in in the U.S. is Indiana, with low housing costs and a lower-than-average cost for groceries. The median price of a home in Indiana is $169,156 and the average monthly rent on a two-bedroom apartment is $854. Of course, a new construction home in Indiana, may end up costing a bit more, but, families in Indiana can still enjoy living in the state that boasts moderate costs of transportation and a median household income is $56,303.
Ready to buy a new home? Connect with one of our knowledgeable team members today to learn more about choosing where to live in the U.S and let us help you find the perfect new home near you.
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