If you are thinking about moving you might wonder what are the states with the lowest cost of living? Building your life in an area with more affordable living costs has its benefits. If having a good job, affordable school, owning a house, and contributing to savings and retirement accounts seems appealing, you might want to move somewhere with a low cost of living.
Have in mind that the most popular states and cities in the US are usually the most expensive. However, you should know that great opportunities can be found all across the USA, especially if you know where to look. To help you make a decision we made the list of some of the most affordable states you can settle in.
Determining the Cheapest Place to Live in America
When ranking the most affordable places to live in, the cost of living index is commonly taken as an indicator. The index ranks a location based on factors like rent, transportation, utilities, groceries, and other everyday expenses. The index also factors in purchasing power and services that can be purchased with the average wage.
Mississippi Is the Most Affordable Location
Mississippi takes the top spot as the most affordable place to live in America. Starting with food and necessities, they are the cheapest you will find in the USA. But what made “The Magnolia State” stand out is childcare. Compared to others, it has the cheapest childcare service. So, if you have kids, this is the place for you.
Also, Mississippi residents have some of the most affordable housing prices in the nation, justifying the second nickname, “The Hospitality State.”
If you plan on moving there, keep in mind that BBQ with friends will be cheaper since the price of a steak is 50% less in the capital city, Jackson, than it is in New York. As for the wine for your guests, its price is less than $10, compared to $14 in New Hampshire. And if you are craving beer, keep in mind that the typical price of a 24-pack of beer is $18.78, compared to $31.21 in Alaska.
If you are relocating because of job opportunities, know that jobs in management and law are among the highest paid in Mississippi. The most expensive area in the state is the capital, Jackson, home to some half a million people.
The prices of services and utilities in Mississippi are:
- Home price: $275,509
- Energy bill: $127.10
- Child Care: $2,869
- Doctor’s visit: $91.27
Tennessee Is Also Very Budget Friendly
Tennessee pairs up with Mississippi and Arkansas when it comes to the price of food and necessities. In Tennessee, you can get a bottle of frying oil for $3.98, while that same commodity is $7.40 in Brooklyn, New York. By comparing Nashville to New York, you can see that buying a cart of eggs in New York will cost you more than double that in Nashville.
Remember, Tennessee has one of the nation’s lowest unemployment rates. Low corporate taxes and business-friendly incentives have helped lure global companies. Jobs in computer and mathematical fields, alongside architecture and engineering, are on the top of the most paid lists. The most expensive area is the capital and the most populous city, Nashville.
The prices of services and utilities in Tennessee are:
- Home price: $318,571
- Energy bill: $157.08
- Child Care: $5,975
- Doctor’s visit: $94.52
Indiana Is a Place With a Fast-Growing Job Market
Indiana has a low unemployment rate of 3.4%, according to the Bureau of Labor Statistics. Some of the fastest-growing jobs in Indiana are occupational therapists, web developers, physical therapists, music therapists, and nurses. Some of the highest-paid positions include anesthesiologists, surgeons, psychiatrists, and dentists.
Indiana’s gas prices are about 25% less than in Washington. Servicing your car is cheap as well, you will pay just $38.87 to balance four tires, compared to $52 in Iowa. Indianapolis, the state’s capital, is also its most expensive area.
The average prices of services and utilities in Indiana are:
- Home price: $250,625
- Housing: $9,641
- Energy bill: $184.40
- Child Care: $6,463
- Doctor’s visit: $93.91
Living in Alabama or Idaho Also Pays Off
“The Heart of Dixie,” has relatively high taxes and medical care, but it makes up for it with low costs of living and a low unemployment rate. There is a good chance that you will find a job if you move there.
You can get a five-pound sack of sugar in Alabama for $2, while that price climbs to $3 in Colorado. A dentist’s visit would cost you around $66, less than half of the price in San Francisco.
Being educated is a huge advantage when it comes to looking for a job in Alabama. Recruiters are looking for candidates with at least a bachelor’s degree. Meanwhile, 14% of them are seeking candidates with master’s degrees or higher. The most expensive area is Mobile, Alabama’s only saltwater port and its third most populous city.
Figure out Average Prices Before Moving to Alabama
When creating your relocation budget, one of the things to consider is the average prices because they will be some of your main expenses. For example, the average prices of services and utilities in Alabama are:
- Home price: $241,783
- Energy bill: $192.98
- Child Care: $5,163
- Doctor’s visit: $116.2
Look Into Average Prices in Idaho Before Moving Across the World
If you are in a dilemma about which of the two states, Alabama or Idaho, is better for you, keep in mind that the latter is famous for cheap electricity. According to the non-profit Institute for Energy Research, Idaho has the second cheapest electricity in the nation, making it a good place to live in due to lower bills. The only one that beats its price of 6.49 cents per kilowatt-hour is Wyoming, at 6.09 cents.
Another benefit of being an Idaho resident is affordable beer since the usual price of a 24-pack is $18.77, while in Hawaii, it is $22.39. The most expensive area is Rexburg, the seat and the largest city of Madison County.
The prices of services and utilities in Idaho are:
- Home price: $266,400
- Energy bill: $88
- Child Care: $7,400
Oklahoma Is a Great Place for Everybody
Oklahoma is budget-friendly, from raising a family to retirement funds. It has affordable housing and lower prices for goods and services. Ponca City is the place with the lowest apartment rents in the country at $500 for a two-bedroom unit.
Oklahoma provides a full exemption for Social Security retirement benefits, and that makes it one of the best choices for moving if you are planning on retiring soon. Also, the usual food, housing, and medical services prices for Oklahoma residents are below the national average.
Even though the sales taxes in Oklahoma are high, property taxes are among the lowest in the country. This is a good place to settle if you are planning on starting a savings account for the future. The most expensive area is Coweta, a suburb of Tulsa.
The prices of services and utilities in Oklahoma are:
- Home price: $124,000
- Energy bill: $108
Michigan Is the Center of the Automotive Industry
For a long period of time, jobs in Michigan have been first and foremost in the automotive industry. Despite the recent crisis in this sector, the business climate is changing, putting jobs in the automotive industry on the rise once again. But when you start looking for a job, you’ll notice other lucrative sectors, including high-tech, biotech, and tourism.
Businesses are choosing Michigan due to its diverse and abundant workforce, friendly environment, and low living expenses.
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Read MoreMichigan Has Affordable Prices of Groceries
Just so you could get the feeling of life in Michigan, consider this – you can buy ground beef for just $3.78 per pound, which compares to $5.17 in Reno, Nevada. A six-pack of beer is about $8, compared to more than $12 in Rochester, New York. The most expensive area is East Lansing, part of the Lansing-East Lansing metropolitan area.
The average prices of services and utilities in Michigan are:
- Home price: $152,000
- Energy bill: $97.41
Missouri Is Great for Homeowners
There is a big chance you could afford to live comfortably in Missouri. The median house price is $138,400, which is 24.6 percent below the US average. Missouri has an unemployment rate of 4%, and its major industries are health care and social assistance, retail, advanced manufacturing, financial and professional services, and agriculture and bioscience.
Transport and grocery prices are also below the national average. Joplin is a city with the lowest real estate prices in the country. Even in more expensive parts of Missouri, prices are incredibly affordable. Proof of this is the fact that you can buy a dozen eggs for $1.32 in Joplin. You will pay nearly twice that in Miami, at $2.61. The most expensive area is the state’s largest city, Kansas City.
The average prices of services and utilities in Missouri are:
- House price: $276,197
- Energy bill: $160.33
- Doctor visit: $94.24
Opt for Two States in One – Kansas
Before moving to Kansas, you should know that it has two sides, making it seem like two different countries in one. One part, eastern, is covered in green land and miles of cornfields. The other is the western part known for its cattle and wheat production. Both regions have different appearances and culture.
Kansas is not all about farming and corn. Agriculture is well established but there are additional industries such as health care, transportation, trade, and manufacturing.
Get a House in Kansas and Save Up
The general expenses and housing are affordable in Kansas. Do you want to rent a Manhattan apartment for $800 per month? Sure you can! But Manhattan, Kansas. You will pay a pound of ground beef nearly 45 percent less than in the more famous of the Manhattans. Going to the dentist in Manhattan, Kansas is about $88 compared to $125 in the Big Apple. Manhattan, Kansas is also the state’s most expensive area, so you can only imagine how cheap the rest of Kansas is.
The average prices of services and utilities in Kansas are:
- House price: $311,911
- Energy bill: $179.18
- Doctor’s visit: $89.50
Enhance Your Financial Well-Being with a Strategic Relocation
Considering a move? It’s essential to realize that your destination could significantly influence your financial well-being, educational opportunities, and home ownership prospects. Opting for states with low living expenses, budget-friendly housing, and economical living options can make a substantial difference.
To ensure a smooth and stress-free transition to these affordable living areas, you need a reliable moving partner. My International Movers excels in offering comprehensive moving solutions, including efficient packing, secure and modern storage facilities, and dependable shipping. Ready to move to a low-cost region and optimize your finances? Contact My International Movers today for a seamless relocation experience.”
