What’s the cheapest state to live in the United States?
The cost of living in the United States varies between states. The cost of living is the amount of money needed to sustain a certain standard of living. The cost of living includes housing, food, taxes, and healthcare. There is a strong correlation between a state’s cost of living and per capita personal income.
The cost of living differs between states depending on how far the dollar goes in that state. This can be seen in housing costs especially. According to 24.7 Wall St., a dollar spent on rent in Arkansas is worth $1.58 in value, while a dollar spent on rent in Hawaii is worth $0.61.
Most of the states with the lowest cost of living are in the South, while those with the highest costs of living often have some of the nation’s largest urban clusters. Generally speaking, states that have a smaller portion of residents living in cities see the dollar go further.
The cost of living index is based on the US average of 100. Any amount below 100 means that the cost is below the nation’s average, and any amount above 100 means that the cost is higher than the nation’s average. The lower the number, the further the dollar goes for that cost.
The cheapest state in the United States is Mississippi. Mississippi’s cost of living index is 86.1 and has the lowest overall housing cost index of all 50 states of 70.1.
The ten cheapest states in the United States (and their cost index) are:
- Mississippi (86.1)
- Arkansas (86.9)
- Oklahoma (87)
- Missouri (87.1)
- New Mexico (87.5)
- Tennessee (88.7)
- Michigan (88.9)
- Kansas (89)
- Georgia (89.2)
- Wyoming (89.3)
Below is a table with all 50 states and their cost indexes.