Top 10 States With The Lowest Cost Of Living 

In this modern world, everyone is stuck in the notion of buying a cheap house. Even now, you are probably scrolling down the housing websites, looking at all the big, beautiful homes. You may have wondered if you could have had that house only if you had moved to a little town, you probably have never heard of.  

Many would say it is not wise to uproot yourself or your life just for a cheap house, but it is worth considering. 

If your main aim is to live a budget-friendly life, go for the lowest cost of living options.  

Living in an unknown place might not sound appealing, but what if I suggested a few inexpensive places where you could consider living?  

Imagine living in the US while paying less for your housing. Sounds perfect.  

In this article, I will introduce you to 10 different US states with the lowest cost of living and help you learn where to pay a minimum value for your housing or other expenses.  

What is the cost of living? 

The cost of living is the amount you may need to cover your expenses while living in a certain place. This includes housing and utilities, healthcare, and groceries.  

Once you know how much you will need for the expenses, you can combine them and get a rough calculation of your cost of living.  

This further helps you understand and compare places to find the best fit for you. You can also use the cost-of-living calculator to get the value without error.      

The cost-of-living index 

To create a cost of living, you can pile up all the data you can find as your main living expenses. This can help you to understand how much you will need to live based on different locations in the US.  

According to the US Bureau of Labour Statistics (BLS) data, an American household needs $5111 monthly for living expenses, equivalent to $61334 per year.  

Now, this is just an average number, and let me tell you, this number can always vary. All we have to do is to understand what we need, which may differ from state to state.  

This is why, instead of comparing the number in dollars, the national average cost is being set at 100.  

Setting the average cost of living at 100 makes things a lot easier. For instance, Hawaii is known for its high cost iof living, around 193.6. This depicts that the cost of living in Hawaii is 93.6% higher than the national average cost.  

Similarly, if a state scores lower than the 100 national average, that particular state has a low cost of living.     

The other factors that need to be considered 

When estimating the cost of living, several other things must be considered. 

Always look at the annual salaries of the area you plan to move to. The employment rate and economic factors also need to be taken into consideration. You have to check the poverty and unemployment rates of the less expensive states. No one would like to end up living in a place where there are zero job opportunities, or the poverty rate is high.  

You will also need to consider the availability of housing. Compare and check what kind of housing you can get while staying within your budget. So, you can also look for housing based on your requirements.  

If you are looking for single-family housing, you must research accordingly.  

The last factor is location. When you start researching, you will find many places where the cost of living is lower than others, but that doesn?t mean that people abandoned the place.  

The states with the lowest cost of living can include cities or urban areas. You will have to decide which you prefer.  

Now, let?s look at the top 10 states with the lowest cost of living.        

The top 10 states with the lowest cost of living 

Mississippi 

Whenever anyone thinks of a place with the lowest cost of living, the first name that comes to mind is Mississippi in the United States. The cost of living is around 83.3. Whereas, in Mississippi you will see the cost of housing is pretty low, 33.7% below the national average.   

The required median cost that a single family will require is around $140,818.  

Although there are some factors that may make you think whether you should plan to live in Mississippi. The first issue is the poverty rate, which is very high. The economic trouble in Mississippi leads to such consequences.        

Kansas 

Kansas is currently at the second place in the states with the lowest cost of living. The score is around 86.5. In Kansas, you can find available housing at a median price of $176,989.  

This state also brags about their low rate of unemployment. So, if you move to Kansas, there is a chance that you may find a decent job.  

Alabama 

Alabama has the lowest cost-of-living index of any state, at 87.9. The median price for a single family is around $170,184, second only to Mississippi.  

The state has the lowest healthcare and transportation costs in the country, even though the state suffers from a high poverty rate.  

However, the low unemployment rate adds some positive features to the state.   

Oklahoma

Oklahoma secures fourth place on our list. The state has an overall cost of living score of 87.9. Healthcare, housing, and groceries are affordable in Oklahoma.  

Oklahoma’s median home price is $151,469, making it affordable. The state also has the highest poverty rate, which is 15.1% higher than the nation?s.   

Like Mississippi, the state also ranks low regarding healthcare and education.  

Georgia 

The peach state, Georgia, is currently fifth in our ranking of the states with the lowest cost of living. The housing costs are lower than the average housing costs. The utility and transportation rate are also lower, with a score of 88.8%.  

As for the median cost, a single-family home would cost you $246,272. Georgia places itself on the higher rank of the fun state list.    

However, if you dislike hot weather, Georgia might not be your choice.  

Tennessee 

Tennessee is another southern state that ranks sixth on the list of states with the lowest cost of living. The current price of living score is 89.0. Tennessee offers a slightly higher rate of housing costs than the other states in the southern part. 

The median cost of a single-family home is $230 253. Tenesse’s unemployment rate is a bit lower, at 3.4%. However, Tennessee’s poverty rate is pretty high, at 13.8%.  

One good thing about Tennessee is that you will not have to pay income tax on the wages you earn.       

Missouri 

Missouri is seventh among the states with the lowest cost of living. Its current living index is 89.8. The state is also connected to two more inexpensive states. The median cost of the state is $194,226.  

The highest minimum wage in Missouri is $11.15. In addition, you can access a great job market.  

However, the high rate of tornadoes and hot summers can make it difficult to live freely.        

Iowa 

Known for its incredibly cold weather, Iowa ranks eighth in the states with the lowest cost of living, at 89.9. 

Unlike any other state in the US, Iowa has the lowest poverty rate, almost 11% lower than the national average.  

As for the median cost, a single family would require $167,036 for a decent living. Iowa is also famous for its cheapest yet strongest infrastructure for education and health.     

West Virginia 

West Virginia, where all country roads can take you, ranks ninth on the list of states with the lowest cost of living. The cost of living is around 90.5.  

Trust me when I say this, but it is where you can buy the most affordable house. For a single-family home, you would require $117,639. 

Even though you can get good housing value, Virginia, along with Mississippi, often comes under the limelight due to its poor economic growth and education system.  

You can also find it very challenging to find a job in West Virginia?s job market.   

Indiana 

To wrap up the list, I will mention Indiana, which is in the top 10 positions in the states with the lowest cost of living list. While the other expenses might seem less expensive to you, the housing cost comes with a very pretty deal.  

The median housing cost for single-family is around $185,505. Other than that, Indiana also falls under the lowest unemployment rate list.   

In Summary 

Even though you think that moving to a less expensive state can help you save money, you also must consider factors like the unemployment rate or job opportunities.  

Try to research which states have the lowest cost of living and which are suitable for you. While choosing a state, consider the lifestyle you want to have or the nature you want to be in.