In the United States, the cost of living can change dramatically just by crossing state lines.
As living expenses increase and remote work offers more flexibility, some Americans are choosing to relocate to states where they can live for less. These locations provide a more affordable lifestyle while still maintaining a sense of community, access to amenities, and entertainment options.
Here are the top states known for their low cost of living, attracting residents away from higher-cost areas.
Texas
While Texas’ major cities, like Austin and Dallas, are known for their booming economies, they also offer reasonable living costs relative to their size and economic output. The absence of state income tax and affordable housing in areas outside of the major urban centers further enhances its appeal. Texas remains a top choice for families and individuals.
Tennessee
Tennessee’s lack of state income tax policy makes it an attractive location for both individuals and businesses. The cost of living is particularly reasonable in cities like Knoxville and Memphis, where housing remains affordable despite rising demand.
Georgia
Georgia is appealing due to its affordable housing and lower healthcare costs. Cities like Augusta and Savannah offer lower living expenses without sacrificing the amenities of larger cities. The state’s growing economy and moderate climate make it a popular choice for young professionals and families.
Indiana
Indiana’s low cost of living is complemented by its robust job market, especially in the manufacturing and education sectors. Housing prices across the state, including in Indianapolis, are well below those in comparable Midwestern cities. Indiana also scores well for affordable education and healthcare, enhancing its appeal as a place to live and work.
Kentucky
Kentucky’s cost of living is lower than the national average, driven down by affordable housing and healthcare costs. The state is known for its bourbon, horse racing, and beautiful landscapes, which are enjoyed by residents without hefty price tags. Kentucky’s commitment to community and family-friendly living makes it an attractive place for settling down.
Ohio
Ohio offers a compelling mix of urban and rural living at a low cost. Major cities like Columbus and Cincinnati provide cultural and professional opportunities without the high costs associated with coastal metropolises. Additionally, Ohio’s education system is ranked highly, which is a significant draw for families.
North Carolina
North Carolina combines affordable living with access to high-tech jobs in the Research Triangle Park area. The state offers diverse environments, from mountain towns to bustling cities like Charlotte and Raleigh. The cost of living is reasonable, and the state continues to attract an educated workforce.
Utah
Utah has become a favorite for its combination of low living costs and high quality of life, especially in cities like Salt Lake City. The state’s strong job market in technology, education, and healthcare contributes to its affordability. Utah’s scenic beauty, from ski resorts to national parks, makes it an attractive state for those who love outdoor adventures.
Montana
Montana provides a low cost of living, particularly in terms of housing and utilities. The state’s economy is supported by mining, agriculture, and a growing tourism sector. Residents enjoy a high quality of life with access to unparalleled outdoor recreation.
Idaho
Idaho offers affordable living with significant growth in urban areas like Boise, where tech jobs are booming. The cost of housing remains competitive, and the state’s natural beauty and outdoor activities are additional draws. Idaho’s growth is a testament to its appeal to younger residents.
Mississippi
Mississippi consistently ranks as the state with the lowest cost of living in the U.S. due to its affordable housing, utilities, and groceries. The median home cost is significantly below the national average, making homeownership more accessible for residents.
Arkansas
Arkansas offers residents a low cost of living, particularly in terms of housing and healthcare. Its natural beauty, combined with low property taxes and inexpensive daily expenses, appeals to those seeking a quieter lifestyle. Cities like Little Rock provide the cultural benefits of urban life without the high costs associated with larger cities.
Oklahoma
Oklahoma’s cost of living is attractive, especially when it comes to housing and transportation costs. The state’s economy, driven by sectors like energy and agriculture, helps keep unemployment low and wages relatively competitive. Living in Oklahoma means enjoying the benefits of an affordable lifestyle while having access to ample job opportunities.
Missouri
Missouri stands out for its low housing costs and overall affordability. The state boasts a diverse economic base, from St. Louis to Kansas City, offering a variety of affordable urban living options. Its central location also contributes to lower transportation and logistics costs, which trickle down to consumer prices.
Alabama
Alabama offers a low cost of living, with its affordable housing market leading the way. Groceries and healthcare also cost less here compared to national averages. The state combines Southern charm with economic incentives, making it appealing for families and retirees alike.
Kansas
In Kansas, residents benefit from low housing costs and a significantly lower cost of food and utilities. The state’s economy is bolstered by agriculture and manufacturing, providing steady employment opportunities. Living in Kansas means experiencing a high quality of life without the high price tag.
Nebraska
Nebraska’s low cost of living is particularly evident in its housing market and healthcare services. The state’s strong agricultural and educational sectors support a stable economy and low unemployment rates. Residents enjoy a blend of quiet rural life and urban centers like Omaha, with plenty of cultural and recreational activities.
Iowa
Iowa is noted for its affordable housing and low cost of healthcare. The state offers a balance of urban and rural communities, with a strong emphasis on education and community values. Its economy is driven by both agriculture and information technology sectors, providing diverse job opportunities.
West Virginia
West Virginia boasts some of the lowest property prices in the nation, along with inexpensive living costs across the board. The state’s scenic beauty and slow pace of life appeal to those looking for a retreat from the hustle and bustle. However, potential residents should be mindful of the economic challenges and limited job opportunities.
South Dakota
South Dakota’s lack of state income tax and low housing costs make it financially appealing. The state offers a rugged lifestyle with plenty of outdoor activities, which attracts a younger demographic looking for an alternative to urban living. Rapid City and Sioux Falls provide urban comforts at a lower cost compared to similar-sized cities.
Wyoming
Wyoming offers no state income tax, low housing costs, and a low cost of living overall. The state’s economy benefits from energy extraction and tourism, which provide jobs and keep the economy robust. Residents enjoy vast natural landscapes and outdoor recreational activities.
New Mexico
Known for its stunning landscapes, New Mexico also offers a cost of living that is below the national average. Housing prices are particularly reasonable, and the state provides a unique blend of cultural experiences.
Louisiana
Louisiana’s lower cost of living is evident in its affordable housing and low healthcare costs. The state offers world-renowned food, music, and annual celebrations like Mardi Gras. Despite economic challenges, Louisiana remains a magnet for those seeking culture at a low cost.
