Escape the High Price of Living in 2024: The Cheapest States to Live

Are you looking to save money on your cost of living? Are rising expenses causing financial strain in your current city or state? If so, you're not alone.

With inflation at a near 40-year high, many people across the country are searching for the most affordable states to live in for housing, groceries and other necessities. That's why we've compiled a list of the most cost-effective states to call home.

These states offer a high quality of life at a lower price point, making them an excellent choice for anyone looking to stretch their budget further. Whether you're just starting out or looking to downsize and save money in retirement, one of these states may be the perfect fit for you.

To discover the cheapest state to live in 2024, we considered average household income, median home price, average housing cost, average grocery costs, average utilities, inflation costs and state income taxes.

Complete List of Cheapest States to Live in America in 2024

Rank	State	Index Score
1	Mississippi	85.3
2	Oklahoma	86
3	Kansas	87.7
4	Missouri	88.4
5	Alabama	88.8
6	Iowa	89.7
7	Nebraska	90.1
8	Arkansas	90.3
9	West Virginia	90.3
10	Tennessee	90.4
11	Illinois	90.8
12	Georgia	91
13	Indiana	91.5
14	Louisiana	92
15	Michigan	92.7
16	Wyoming	92.8
17	Texas	93
18	Kentucky	93.8
19	South Dakota	93.8
20	Ohio	94
21	Minnesota	94.1
22	New Mexico	94.2
23	North Dakota	94.6
24	Wisconsin	95
25	North Carolina	96.1
26	South Carolina	96.5
27	Pennsylvania	99
28	Nevada	101.3
29	Utah	101.5
30	Florida	102.3
31	Delaware	102.6
32	Virginia	103.1
33	Montana	103.7
34	Colorado	105.5
35	Idaho	106.1
36	Arizona	107.2
37	Rhode Island	110.5
38	Maine	111.5
39	Connecticut	113.1
40	New Jersey	114.1
41	Vermont	114.9
42	New Hampshire	115
43	Oregon	115.1
44	Washington	115.1
45	Maryland	119.5
46	Alaska	124.4
47	New York	125.1
48	California	134.5
49	Massachusetts	148.4
50	District of Columbia	148.7
51	Hawaii	179

What State to Choose?

The cheapest state to live in isn't always the best place to put down roots. When comparing your options, there are a few factors you'll want to take into consideration, such as:

Job Market: Does the state have a healthy job market? Are there professional opportunities in your industry? Understanding the job market will ensure your destination is somewhere you'll feel financially secure.

Cultural and Recreational Activities: Consider what weekend activities are available in the communities and surrounding cities. Does the state have a culture that suits your needs and interests? Get the whole family involved in this one—you’ll want to ensure you and yours have plenty of opportunities for fun and growth!

Climate: Are the winters harsher than what you're used to? Are you prepared for humidity or scorching hot summers? Make sure you and your family can acclimate to a different climate before moving to the cheapest states.

Proximity: How far will you be from your friends and family? A cheap cost of living may not make a satisfying alternative for being near your loved ones.

Political Climate: Research the political climate to ensure the state’s current laws and future direction align with the values you find important.

Settling down in one of the most affordable states to live in sounds good in theory, but if it doesn’t align with your needs and wants, it’s likely not a good fit!

Where Did Americans Move To and From Last Year?

Every year, North American Van Lines publishes a National Movers Study analyzing the previous year's completed moves. The study shows the top states Americans are moving to and away from.Visit the Migration Map to read more about the study and see the results.

Methodology

To determine the most affordable states to live in America, we analyzed ten different metrics:

Average household income
Median home price
Mortgage w/ 20% Down @ 6.645%
Average Rent
Calculated Average Housing Cost
Average grocery costs
Average utilities
Inflation
State Income Tax Cost
State Income Tax Rates

These averages come from various sources, including the Bureau of Labor Statistics, SmartAsset.com, Senate.gov, and Numbeo's cost of living database.

Average housing cost was figured assuming 66% homeownership vs 34% renting according to (The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate at 65.4% in the first quarter of 2023 Mortgage payments were figured off a 6.45% interest rate with 20% down, using the average home price for each state.

We then created a scoring methodology to weigh these different factors.

Plan Your Next Move With North American Van Lines

Ready to move to the cheapest place to live in the United States? Whether you relocate from the bustling West Coast to a quaint suburb in the Midwest or from the harsh New England winters to the year-round sunshine of the deserts, North American Van Lines is here to help.

For over 90 years, our professional movers have helped individuals, families, and businesses relocate throughout the United States and beyond. Our experienced team will help you settle down in any of the most affordable states or start a new life in an expensive city. Wherever life takes you, we’re here to help with all your moving needs.

Request a free quote today to get started!