Even as the cost of living surges across the country, several states still manage to offer a budget-friendly lifestyle.
Whether you’re considering a move or just wondering where your paycheck can go the furthest, the following states stand out for their lower housing costs, affordable groceries, and reduced tax burdens. They’re perfect for those looking to make their money work harder, leaving room to save or invest, according to Fireside-Morgan Hill Management.
Here are the most affordable states to call home:
Mississippi
The cost of living in Mississippi is the lowest in the United States, with expenses averaging about 15% less than the national average. This state offers substantial savings on housing, groceries, and transportation. A family can live comfortably in Mississippi for much less than in most other states.
Arkansas
In Arkansas, residents enjoy a cost of living that is approximately 17% lower than the national average. The average home price here is just $128,000, making homeownership attainably affordable. Savings on utilities and healthcare further enhance Arkansas’s appeal.
Oklahoma
Oklahoma ranks third for affordability, with costs about 16% below the national norm. The state’s low housing costs are a major contributor, with an average home price around $130,000. Residents benefit from lower healthcare and food prices as well.
Missouri
Missouri’s cost of living is nearly 14% lower than the U.S. average, driven by affordable housing and low utility costs. With an average household income that stretches further here, residents find they can allocate more towards savings and leisure. The state also boasts a competitive job market that helps keep unemployment low.
Tennessee
Residents of Tennessee enjoy not only the beautiful landscapes but also a cost of living that’s 13% below the average. Housing is particularly affordable, with the median home cost at $164,000. Additionally, the state has no income tax.
Indiana
Indiana’s cost of living sits 12% below the national average, offering significant savings on housing and groceries. The state’s average home cost is around $141,000, which is well below many other locations in the Midwest. Indiana also scores high for its lower healthcare costs.
Alabama
With living costs about 13% less than the average American state, Alabama combines Southern charm with economic benefits. The state’s median home price is just $142,000, making it an attractive place for first-time home buyers. Alabama also prides itself on low costs for groceries and healthcare.
Georgia
Georgia’s living expenses are roughly 11% lower than the national average, making it a desirable location for retirees and families alike. The state offers competitive utility rates and healthcare costs. Atlanta, while slightly more expensive, still remains an affordable urban center compared to other major cities.
Kansas
In Kansas, the overall expenses are about 10% below the U.S. average. Housing here averages $150,000 for a home, well within reach for the average American. The state’s residents also benefit from affordable healthcare and education services.
Kentucky
Kentucky’s cost of living is 12% lower than the national average, with particularly low housing costs. Residents can buy a median-priced home for around $139,000. The state also offers lower prices on groceries and utilities, boosting residents’ purchasing power.
Nebraska
The cost of living in Nebraska is around 10% below the national average, supported by low housing costs and affordable healthcare. An average home here costs about $160,000, a bargain compared to coastal states. Nebraska’s agricultural abundance keeps grocery prices low.
North Carolina
North Carolina offers a cost of living that’s 5% below the national average. The state’s diverse economy supports job growth and maintains affordable living costs, especially in healthcare and education. Raleigh and Charlotte, while more expensive, still offer great value compared to similar-sized cities.
South Carolina
With living expenses around 9% below the national average, South Carolina is more than just a beautiful coastal state. Housing here is affordable, with average home prices around $170,000. The state also enjoys lower utility and food costs.
Texas
Texas boasts a cost of living that is 7% below the national average. The state offers diverse living options from rural areas to bustling cities like Houston and Dallas, all at reasonable prices. Additionally, the absence of state income tax in Texas significantly lowers the overall tax burden for its residents.
Iowa
Iowa, with its living costs about 10% below the national average, offers a high quality of life at a low cost. Homes in Iowa have an average price of $142,000, making them very affordable. The state’s commitment to education and healthcare keeps these essential services reasonably priced for residents.
Ohio
Ohio presents a cost of living 10% under the national average. Cities like Cleveland and Cincinnati offer urban living at a fraction of the cost seen in coastal cities. Ohio’s strong industrial base continues to offer plentiful job opportunities, which helps keep unemployment rates low.
Wisconsin
Wisconsin’s cost of living is approximately 7% lower than the national average, buoyed by reasonable housing and healthcare costs. The average home price here is $180,000, affordable on a median income. Wisconsin’s dairy industry helps keep grocery costs competitive.
Minnesota
Minnesota offers a cost of living about 7% below the national norm, making it an attractive option in the northern part of the country. The state’s robust economy helps maintain affordable prices on housing and healthcare.
Florida
Florida provides a cost of living that is on par with the national average, appealing especially to retirees. The lack of state income tax here makes it easier to stretch pensions and savings. Florida’s real estate market offers a range of options, from affordable condos to luxury beachfront homes.
Arizona
Arizona’s cost of living matches the national average, with particular savings in areas like healthcare and utilities. The state’s warm climate attracts many retirees looking for a sunny, affordable place to live. Arizona’s growing tech industry also offers ample job opportunities at competitive salaries.
New Mexico
New Mexico boasts a cost of living right at the national average, enriched by its unique culture and lower housing costs. An average home here costs $190,000, offering great value in a scenic state. The presence of major research institutions and national labs helps drive job growth.
