Lowest Cost Of Living States - Discovering The Most Affordable Options

In today's dynamic economic landscape, the cost of living has become a pivotal factor for many when considering relocation. As we navigate through 2024, it's crucial to be informed about which states offer the most value for your hard-earned money. The cost of living doesn't just encompass housing; it's a comprehensive measure that includes essentials like transportation, healthcare, groceries, and more.

With inflation and other economic challenges at the forefront, understanding where you can maximize your financial well-being becomes paramount. Whether you're a young professional, a growing family, or looking to retire, choosing a state with a lower cost of living can significantly impact your quality of life.

In this guide, we'll delve deep into the states that stand out in 2024 for their affordability and provide insights to aid your next big move. And remember, wherever you decide to relocate, Three Movers is here to assist every step of the way.

What is the Cost of Living?

The term "cost of living" refers to the total amount of money an individual needs to cover basic daily expenses in a particular location. Think of it as the price tag of maintaining a standard lifestyle in a specific place. This doesn't just mean paying for a roof over your head; it's much more comprehensive than that.

Diving deeper, the cost of living encompasses essential expenses such as housing (like rent or mortgage), the food we eat, the bills we pay for utilities like water and electricity, and the costs associated with transportation, whether it's fuel for our cars or public transit fares. Additionally, it factors in health care expenses, which can vary widely from one place to another, and other miscellaneous expenses like entertainment, clothing, and personal care items.

In essence, understanding the cost of living helps individuals gauge how far their money will go in different locations, ensuring they can maintain their desired lifestyle without stretching their budget too thin.

The Most Affordable States to Live in 2024

The cost of living is a significant factor for many when considering relocation. It's essential to understand how each state fares in terms of living costs, especially when planning a move. Here, we delve into the details of the 13 states with the most affordable living costs in 2024.

1. Mississippi: The Top of the List

Overview of Mississippi's Affordability: Mississippi stands out as the cheapest state to live in the U.S., boasting a cost of living 15.6% lower than the national average. This southern state offers a blend of rich culture and economic advantages.
Housing and Economic Factors: With a median home price of $274,750 and a median monthly rent for a two-bedroom apartment at $1,032, Mississippi offers affordable housing options. The state's median household income is $49,111, and it enjoys a competitive unemployment rate of 3.9%.
Cultural Highlights: Beyond the numbers, Mississippi is a hub for rock 'n' roll, blues, and delectable southern cuisine. From fried catfish to chocolate pies, the state offers a rich cultural experience.

2. Oklahoma: The Western Charm

Oklahoma's Economic Landscape: Heading west, Oklahoma's average cost of living is 13% lower than the national average. Muskogee, its cheapest city, offers a cost of living 21% below the average, making it an attractive option for many.
Housing and Income Details: The median home price in Oklahoma stands at $285,450, with a median monthly rent of $1,035 for a two-bedroom apartment. The state's median household income is $56,956, and it boasts an unemployment rate of 3.4%.
State's Rich Heritage: Oklahoma is not just about affordability; it's also a state rich in culture. From sports legends like Mickey Mantle to entertainment icons like Brad Pitt and Carrie Underwood, Oklahoma has given the world many stars. The state also takes pride in its Native American roots and cowboy culture.

3. Kansas: The Central Hub

Why Kansas is Economically Appealing: In the heart of America, Kansas offers a cost of living of 12.7% below the national average. While healthcare and utilities might align with the national average, Kansas stands out for its affordable miscellaneous goods and services.
Economic and Housing Insights: Housing in Kansas is notably affordable, with a median home price of $279,000 and a median monthly rent of $1,045 for a two-bedroom apartment. The state's median household income is $64,521, and it has a low unemployment rate of 2.8%.
Kansas's Financial Advantages: With its low housing costs and competitive salaries, Kansas emerges as one of the best states to live in from a financial perspective. The state offers a blend of urban and rural living, catering to a wide range of preferences.

Read More: Finding The 15 Cheap Ways For Across Country Moving

4. Alabama: The Southern Belle

Alabama's Cost of Living Overview: Alabama ranks fourth in terms of affordability, with the cost of living 12.1% lower than most of the U.S. However, it's essential to note that utility bills in Alabama are close to the national average, making it crucial to factor in these costs.
Housing and Economic Data: The median home price in Alabama is $311,083, with a median monthly rent of $1,001 for a two-bedroom apartment. The state's median household income stands at $54,943, and it has an unemployment rate of 2.7%.
Cultural and Industrial Highlights: Alabama is not just about numbers; it's a state known for its lush forests, pristine beaches, and being NASA's home base. The state plays a significant role in America's steel pipe production, thanks to its rich soil containing limestone, iron ore, and coal.

5. Georgia: The Peach State

Georgia's Economic Landscape: Georgia's cost of living is 11.4% below the national average. While Atlanta might slightly skew this number, other cities in Georgia offer living costs ranging from 8% to 17% below the average U.S. city.
Housing and Income in Georgia: The median home price in Georgia is $385,000, with a median monthly rent of $1,292 for a two-bedroom apartment. The state's median household income is $65,030, and it has an unemployment rate of 3%.
Georgia's Natural and Cultural Beauty: Beyond its economic advantages, Georgia is a state of natural beauty, from the Appalachian Mountains to the Atlantic beaches. The state also boasts beautiful architecture and is drenched in Southern charm.

6. Ohio: The Buckeye State's Affordability

Ohio's Economic Attractiveness: Ohio stands out with a cost of living approximately 10.6% lower than the national average. Its central location and rich history make it a desirable destination for many looking for a balance between affordability and cultural richness.
Housing and Economic Overview: In Ohio, the median home price is a modest $224,950, with a median monthly rent of $1,069 for a two-bedroom apartment. The state's median household income is $61,938, and it has an unemployment rate of 4.2%, slightly above the national average.
Ohio's Cultural and Historical Significance: Beyond its economic appeal, Ohio boasts a rich tapestry of history and culture. From the Rock and Roll Hall of Fame in Cleveland to the picturesque landscapes of Hocking Hills, Ohio, it offers a diverse range of experiences.

7. Iowa: The Heartland's Gem

Iowa's Cost of Living Highlights: With a cost of living 10.5% below the national average, Iowa stands out as an affordable option in America's heartland. Its blend of urban and rural settings offers residents a unique living experience.
Economic and Housing Data: Housing in Iowa is notably affordable, with a median home price of $278,500 and a median monthly rent of $951 for a two-bedroom apartment. The state's median household income is an impressive $65,429, and it boasts a low unemployment rate of 3.1%.
Iowa's Cultural and Historical Richness: Iowa is not just about affordability; it's a state steeped in history and culture. From its role in the invention of sliced bread to its picturesque state parks and museums, Iowa offers a rich living experience.

8. West Virginia: The Mountain State's Value

Overview of West Virginia's Affordability: West Virginia offers a cost of living that's 10% below the national average. Its mountainous terrain and rich history make it a unique place to call home.
Housing and Economic Factors: The median home price in West Virginia is $221,975, with a median monthly rent of $855 for a two-bedroom apartment. The state's median household income stands at $50,884, with an unemployment rate of 4%.
West Virginia's Natural Beauty and Industry: Beyond its affordability, West Virginia is known for its mining industry and stunning outdoor areas. From hiking trails to historical sites like Harper’s Ferry, the state offers a blend of nature and history.

9. Indiana: The Hoosier State's Appeal

Indiana's Economic Landscape: Indiana's cost of living stands at 10% less than the U.S. average. Its central location and diverse landscapes make it an attractive option for many.
Housing and Income Details: The median home price in Indiana is $266,299, with a median monthly rent of $1,091 for a two-bedroom apartment. The state's median household income is $61,944, and it has an unemployment rate of 3%.
Indiana's Natural and Cultural Offerings: Indiana offers a mix of sand dunes in the north and forests and limestone caves in the south. The state also has a rich agricultural history, with a significant focus on popcorn production.

10. Arkansas: The Natural State's Affordability

Arkansas's Cost of Living Overview: Arkansas boasts a cost of living 9.9% below the national average. One of its standout features is its healthcare costs, which are 17% below the national average, offering significant savings.
Housing and Economic Data: The median home price in Arkansas is $279,950, with a median monthly rent of $956 for a two-bedroom apartment. The state's median household income is $52,123, and it matches the national unemployment rate of 3.7%.
Arkansas's Natural Wonders and Industry: Arkansas is renowned for its natural hot springs, caves, and forests. The state also offers unique experiences like diamond hunting at the Crater of Diamonds State Park.

11. Missouri: The Show-Me State's Value

Missouri's Economic Highlights: With a cost of living 9.8% lower than the national average, Missouri offers a blend of urban and rural settings, making it an attractive destination for many.
Economic and Housing Overview: The median home price in Missouri is $275,675, with a median monthly rent of $1,008 for a two-bedroom apartment. The state's median household income stands at $61,043, with a low unemployment rate of 2.7%.
Missouri's Cultural and Natural Beauty: From the iconic Gateway Arch in St. Louis to the Ozark Mountains, Missouri offers a diverse range of experiences. However, potential residents should research neighborhoods thoroughly, as some areas have higher crime rates.

Read More: The Ultimate Moving Out Of State Checklist

12. Tennessee: The Volunteer State's Economic Appeal

Tennessee's Cost of Living Insights: Tennessee's cost of living is 9.6% below the national average. Its central location and rich musical history make it a desirable destination for many.
Housing and Economic Factors: The median home price in Tennessee is $419,950, slightly above the national average. However, with a median monthly rent of $1,136 for a two-bedroom apartment and a median household income of $58,516, the state offers a balanced economic landscape.
Tennessee's Cultural and Natural Offerings: From the Great Smoky Mountains to Nashville's vibrant music scene, Tennessee offers a rich cultural experience. The state is also known for its delicious barbecue and southern hospitality.

13. Michigan: The Great Lakes State's Value

Michigan's Economic Landscape: With the cost of living 8.9% below the national average, Michigan offers residents access to the Great Lakes and a rich automotive history.
Housing and Economic Overview: The median home price in Michigan is $252,450, with a median monthly rent of $1,088 for a two-bedroom apartment. The state's median household income is $63,202, and it has an unemployment rate of 4.3%.
Michigan's Industrial and Recreational Highlights: Known for its auto industry, Michigan also offers residents a plethora of winter sports and recreational activities, from ice fishing to skiing.

The Impact of Cost of Living on Lifestyle

The cost of living plays a pivotal role in shaping one's lifestyle, dictating not only the quality of life but also the choices and opportunities available to individuals. As expenses fluctuate across regions, understanding these impacts can guide better financial and life decisions.

1. Housing and Living Conditions

One of the most immediate effects of the cost of living is on housing. In areas with a high cost of living, individuals might find themselves compromising on the size, location, or quality of their homes. This could mean living in smaller spaces, opting for shared accommodations, or residing in neighborhoods that might not be their first choice.

Conversely, in areas with a lower cost of living, individuals might have access to larger homes or apartments in more desirable locations, leading to a more comfortable living environment.

Moreover, the type of housing one can afford directly influences one's daily life. A smaller space might mean less room for recreational activities or hobbies, while a larger space can accommodate a home office, gym, or even a garden. The proximity to amenities, work, or educational institutions also plays a role in daily routines and quality of life.

2. Educational and Career Opportunities

The cost of living in a region can significantly influence educational and career choices. In cities with a higher cost of living, individuals might prioritize jobs with higher salaries over passion projects or might delay or forgo higher education due to financial constraints.

On the other hand, areas with a more affordable living index might offer individuals the flexibility to explore diverse career paths or pursue further education without the burden of excessive financial stress.

Additionally, cities with a high cost of living often house prestigious institutions and corporations, offering unique opportunities. However, the competition in such areas is also fierce, leading to a high-pressure environment.

3. Healthcare and Well-being

Access to healthcare services and the quality of those services can vary greatly depending on the cost of living. In areas where living costs are high, healthcare services might also come with a hefty price tag, making regular check-ups, treatments, or even health insurance premiums a significant financial burden. This can lead individuals to neglect their health or opt for alternative, sometimes less effective, treatments.

In contrast, regions with a lower cost of living might offer more affordable healthcare, but the quality or availability of advanced treatments might be limited. The balance between affordability and quality becomes crucial for maintaining good health and well-being.

4. Recreation and Leisure Activities

The cost of living directly impacts how individuals spend their free time. In cities with a high cost of living, recreational activities, from dining out to attending concerts or theater, can be expensive.

This might lead individuals to seek cheaper or free alternatives, such as public events, parks, or home-based hobbies. In more affordable areas, individuals might have a broader range of leisure activities within their budget, leading to a more varied and fulfilling social life.

Furthermore, the type of recreational activities available can also be influenced by the region's economic landscape. Metropolitan areas, despite their high living costs, often offer a plethora of cultural and entertainment options.

5. Savings and Financial Security

The ability to save money and invest in the future is heavily influenced by the cost of living. High living costs can make it challenging to set aside a portion of one's income for savings, leading to potential financial instability in the face of emergencies. This can also impact long-term goals like retirement planning, purchasing property, or investing in business ventures.

In regions with a lower cost of living, individuals might find it easier to save and invest. However, lower living costs might also correlate with lower average salaries, making it essential to strike a balance between earnings and expenses to ensure financial security.

Read More: Discover The Cheapest Way To Move Out Of State

Why Choose Three Movers: Your Trusted Moving Partner?

At Three Movers, we understand that relocating is more than just moving belongings from one place to another. It's about transitioning to a new chapter in life, and we're here to ensure that transition is as smooth as possible. With our deep understanding of the community and economic research, we've tailored our services to meet the unique needs of individuals moving across various cost-of-living indices.

Expertise in Diverse Moves

Local Relocations: Whether you're moving within the same city or to a neighboring town, our team is well-versed with the local terrains and regulations.
Interstate Transfers: Moving across states comes with its own set of challenges, from understanding state income tax differences to adjusting to a new living wage. We're here to guide and assist you every step of the way.
International Moves: Relocating overseas? We've got you covered. From handling customs paperwork to ensuring your belongings reach safely, trust in Three Movers.

Affordable and Transparent Pricing

Free Quotes: Before you commit, get a clear understanding of the costs involved. We believe in transparency and offer free quotes to help you make an informed decision.
Competitive Rates: Among the cheapest states or the priciest cities, our rates remain competitive, ensuring you get the best value for your money.

Holistic Moving Services

Packing and Unpacking: Our team is trained to pack your belongings with care, ensuring they reach the destination in pristine condition.
Transportation: With a fleet of well-maintained vehicles, we guarantee timely and safe transportation of your belongings.
Insurance: We understand the value of your possessions. Our comprehensive insurance coverage ensures you're protected against unforeseen circumstances.

Conclusion

Relocating can be a daunting task, especially when considering factors like transportation and healthcare costs, the cost of living index, and the median price of housing in the new location. However, with Three Movers by your side, you can be assured of a hassle-free move.

Our team is dedicated to ensuring that your transition is smooth, affordable, and tailored to your specific needs. So, whether you're moving to one of the cheapest states or a bustling metropolitan area, let us handle the heavy lifting. Contact Three Movers for a seamless moving experience.

FAQs

How does the cost of living index impact my moving costs?

The cost of living index can influence various factors like transportation and housing costs in the new location. While we strive to offer competitive rates, the final quote might vary based on the destination's economic landscape.

Do you offer services in states with both high and low living wages?

Absolutely! Three Movers operates across a spectrum of states, irrespective of the living wage. Our goal is to provide top-notch services at affordable rates, no matter the destination.

How do state income taxes affect my move?

While state income taxes won't directly impact your moving costs, they can influence your overall budget and financial planning post-move. It's always a good idea to research and understand the tax implications of your new state.

Can I get a breakdown of the median price for services in my destination state?

Yes, our team can provide a detailed quote, giving you insights into the median prices and other associated costs for your move to the desired state.

How do transportation and healthcare costs in a new state affect my relocation process with Three Movers?

While transportation and healthcare costs are significant indicators of a state's cost of living, they don't directly influence the cost of our moving services. However, understanding these costs can help you budget for your life post-move. At Three Movers, we aim to provide consistent, high-quality services regardless of these external factors.