Sam SmithCost of living is one of the most important factors when deciding where to live, work, or retire. From housing prices and utility bills to groceries and healthcare, everyday expenses vary dramatically across the United States. While some states are known for sky‑high costs, others offer affordable lifestyles without sacrificing quality of life. In this article, we’ll explore the 30 states with the lowest cost of living presently, highlighting where your dollar stretches the furthest.
Top 30 States With the Lowest Cost of Living (Fresh Estimate)
1. Mississippi
Mississippi consistently ranks as the most affordable state in America, with a cost of living index well below the national average. Housing prices are among the lowest in the country, and groceries, utilities, and healthcare remain highly affordable. While wages are lower compared to other states, the overall expenses make Mississippi attractive for retirees, families, and individuals seeking budget‑friendly living. Its Southern charm, slower pace of life, and cultural richness add to its appeal.
2. Arkansas
Arkansas offers one of the lowest costs of living nationwide, driven by inexpensive housing and utilities. The state’s rural communities provide affordable lifestyles, while cities like Little Rock and Fayetteville balance affordability with growing job opportunities. Groceries and healthcare costs are also below average, making Arkansas appealing for families and retirees. Despite lower wages, the state’s natural beauty, including the Ozark Mountains and abundant outdoor recreation, enhances its quality of life without straining budgets.
3. Oklahoma
Oklahoma’s affordability stems from low housing costs and inexpensive utilities. With a cost of living index well below the national average, residents enjoy budget‑friendly lifestyles in both rural areas and cities like Tulsa and Oklahoma City. Groceries and healthcare are also relatively affordable, though wages tend to be modest. The state’s central location, cultural diversity, and strong energy sector provide opportunities, while its affordability makes it attractive for young professionals and families seeking stability.
4. Missouri
Missouri combines affordability with accessibility, offering low housing costs and moderate expenses for groceries and healthcare. Cities like St. Louis and Kansas City provide urban amenities at lower prices than coastal metros, while rural areas are even more budget‑friendly. Utilities are affordable, and transportation costs remain manageable. Missouri’s central location, cultural attractions, and strong agricultural base make it appealing for residents seeking a balance of affordability, opportunity, and quality of life in the Midwest.
5. New Mexico
New Mexico’s cost of living is among the lowest in the nation, thanks to affordable housing and moderate food prices. Utilities and healthcare costs are manageable, though wages are lower than average. The state’s cultural richness, blending Native American and Hispanic traditions, adds unique appeal. Cities like Albuquerque and Santa Fe offer affordable lifestyles with vibrant arts and outdoor recreation. New Mexico’s affordability, combined with its scenic landscapes, makes it attractive for retirees and creatives.
6. Tennessee
Tennessee offers affordability alongside a growing economy. Housing costs are low compared to national averages, and groceries and utilities remain budget‑friendly. Healthcare costs are moderate, but overall expenses make Tennessee appealing for families and retirees. Cities like Nashville and Memphis provide cultural vibrancy at reasonable prices, while rural areas are even more affordable. The state’s music heritage, natural beauty, and business growth combine with affordability to make Tennessee one of the most attractive Southern states.
7. Michigan
Michigan’s affordability is driven by low housing costs, especially outside Detroit and other major cities. Groceries, utilities, and healthcare remain below national averages, making the state appealing for families and retirees. While wages vary, the overall expenses are manageable. Michigan’s Great Lakes shoreline, forests, and outdoor recreation add quality of life benefits. The combination of affordability and natural beauty makes Michigan attractive for residents seeking budget‑friendly living with access to cultural and recreational opportunities.
8. Kansas
Kansas ranks among the most affordable states, with low housing and utility costs. Groceries and healthcare are also below national averages, making it appealing for families and retirees. Wages are modest, but expenses remain manageable. Kansas’s central location provides easy access to other regions, while its agricultural base supports stability. Cities like Wichita and Topeka offer affordable urban living, while rural areas provide even lower costs. Kansas combines affordability with a quiet, steady lifestyle.
9. Georgia
Georgia’s affordability varies by region, with rural areas offering very low costs and cities like Atlanta being more expensive. Overall, the state’s housing, groceries, and utilities remain below national averages, making it attractive for families and professionals. Healthcare costs are moderate, but wages are competitive compared to other Southern states. Georgia’s cultural richness, strong job market, and diverse communities enhance its appeal. The balance of affordability and opportunity makes Georgia a popular destination for growth.
10. Indiana
Indiana’s cost of living is well below the national average, with affordable housing and healthcare. Utilities and groceries are also inexpensive, making the state appealing for families, retirees, and young professionals. Cities like Indianapolis offer urban amenities at lower costs than coastal metros, while rural areas provide even greater affordability. Indiana’s strong manufacturing base supports economic stability, while its affordability ensures residents can enjoy comfortable lifestyles without financial strain. It remains a Midwest affordability leader.
| Rank | State | Cost of Living Index | Notes |
|---|---|---|---|
| 1 | Mississippi | 85.0 | Lowest overall; housing and groceries very affordable |
| 2 | Arkansas | 85.5 | Consistently ranked #1 in affordability |
| 3 | Oklahoma | 86.0 | Low housing and utility costs |
| 4 | Missouri | 86.5 | Affordable housing, central location |
| 5 | New Mexico | 87.0 | Low rent, moderate food costs |
| 6 | Tennessee | 87.5 | Affordable housing, growing economy |
| 7 | Michigan | 88.0 | Low housing costs, especially outside Detroit |
| 8 | Kansas | 88.2 | Affordable housing and utilities |
| 9 | Georgia | 91.3 | Low cost in rural areas, higher in Atlanta |
| 10 | Indiana | 90.5 | Affordable housing and healthcare |
| 11 | Kentucky | 93.0 | Low housing and food costs |
| 12 | Alabama | 92.0 | Affordable housing, moderate healthcare |
| 13 | Louisiana | 92.2 | Low housing, higher insurance costs |
| 14 | Texas | 92.7 | Affordable housing outside major metros |
| 15 | South Dakota | 92.2 | Low housing, utilities |
| 16 | North Dakota | 91.9 | Affordable housing, higher energy costs |
| 17 | Ohio | 94.2 | Low housing, moderate healthcare |
| 18 | Nebraska | 93.1 | Affordable housing, utilities |
| 19 | Pennsylvania | 95.1 | Affordable housing outside Philadelphia |
| 20 | Minnesota | 95.1 | Low housing, higher healthcare |
| 21 | Wyoming | 95.5 | Affordable housing, higher transport costs |
| 22 | South Carolina | 95.9 | Low housing, higher insurance |
| 23 | Wisconsin | 97.0 | Affordable housing, higher utilities |
| 24 | North Carolina | 97.8 | Affordable housing, higher in Charlotte/Raleigh |
| 25 | Montana | 94.9 | Low housing, higher transport |
| 26 | Illinois | 94.4 | Affordable housing outside Chicago |
| 27 | Iowa | 96.0 | Low housing, utilities |
| 28 | West Virginia | 89.0 | Very affordable housing, low wages |
| 29 | Idaho | 102.0 | Affordable housing, rising costs in Boise |
| 30 | Colorado | 102.0 | Affordable utilities, higher housing in Denver |
Closing
Affordability is more than just numbers—it shapes opportunities, family decisions, and long‑term financial stability. The states with the lowest cost of living often combine reasonable housing prices, accessible healthcare, and manageable daily expenses, making them attractive for students, families, and retirees alike. Whether in the South, Midwest, or Great Plains, these regions prove that living well doesn’t always require living expensively. Understanding where costs are lowest helps you plan smarter and choose a lifestyle that balances budget with comfort.