15 Cheap States to Move to: The Lowest Cost of Living States in the US

While everyone wants a high-paying job and substantial savings account, it’s not the money itself but its purchasing power that determines one’s financial situation. There are places in the country where you can make a lot of money and still feel poor – and areas where you can afford a comfortable lifestyle with a moderate income.

The cost of living in the United States varies from state to state – considerably so. And even though the more expensive areas are supposed to offer greater opportunities, you may be happier and more successful in one of the cheaper states.

Moving to a lower cost of living area can help you achieve financial stability and build your dream life much more quickly and easily than if you’re living in a more expensive state. Before you decide to relocate someplace cheaper, however, you need to know your options and take a closer look at the most affordable states to move to.

Many organizations have conducted researches to find the cheapest states to live in the US – we’ve narrowed down the list to the 15 most cost-effective locations (based on the price of housing, utilities, groceries, and other essential goods and services), so you know which states have the lowest cost of living and consider them for your move.

How Are the Cheapest States in the US Determined?

The cheapest states in America are ranked by their cost of living index and housing affordability.

The Council for Community and Economic Research defines the cost of living index as “a measure of the regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures”. The index is based on six categories – housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. It also factors in purchasing power – the amount of goods and services that can be purchased with the average income in that location.

Housing affordability measures how expensive home prices in the region are in relation to the median family income – whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home in the area.

All this means that moving to one of the states with the lowest cost of living in the country will allow you to save money through lower housing, utility, food, medical, entertainment, and transportation costs.

Top 15 Cheapest States to Move to in the US

If you’re thinking about moving to a cheaper place, make sure you consider the 15 lowest cost of living states first:

1) Mississippi

According to the latest reports, Mississippi tops the list of the most affordable states in America in 2019. Living in the Magnolia state costs around 15% less than the nationwide average. With a housing index of 69, median rent prices of about $1,000, utility index of 89, grocery index of 91, and transportation index of 90, Mississippi is as cheap as it gets in America.

Along with a low cost of living, the Magnolia state offers plenty of job options (you can choose from a wide variety of strong and growing industries – aerospace, agriculture, auto manufacturing, energy, healthcare, shipbuilding, and tourism) and numerous outdoor pursuits (there are many forests, parks, and wildlife reserves in the area).

What’s more, Mississippi is known as the Hospitality State – it is a friendly place where you can become a part of the community and get a sense of belonging and connection within months after the relocation.

See also: How to adapt to a new environment when moving; How to make new friends when you move

2) Arkansas

With the second lowest cost of living in the country, Arkansas is a great place to move to and save money – it’s about 13 percent cheaper to live in the Razorback State than in other states. Although housing costs, utilities, and groceries are very affordable in Arkansas, it’s the exceptionally low cost of transportation that makes the state stand out among other cheap regions in the country.

Affordable, beautiful, and progressive, Arkansans offers a comfortable lifestyle, various recreational activities, and numerous rewarding career opportunities in aerospace, agriculture, information technology, manufacturing, etc.

See also: Things to consider when moving

3) Oklahoma

With its residents paying approximately 25% less for their homes than the national average, Oklahoma ranks as the third most affordable state to live in the US.

The Sooner State is a great place to work as well – it has a lower-than-average unemployment rate and had the sixth highest personal income growth in the country from 2010 to 2015 (personal incomes grew by almost 19 percent during that time). You can pursue a career in a variety of innovative industries (aerospace, biotechnology, energy and weather science, etc.) and traditional occupations (professional services, communications, healthcare, transportation, etc.) and create a comfortable lifestyle for yourself and your family in Oklahoma.

See also: Your job relocation guide

4) Missouri

Known for its delicious food and craft beers, beautiful lakes and great musicians, Missouri is a lovely and affordable place to live in. Housing prices in the Show Me State are about 27% lower than the national average and transportation is astonishingly cheap as well.

Missouri has a growing science, agricultural technology, and biotechnology field, a stable job market, and well-developed retail and wholesale trade. Tourism is also thriving due to the scenic rivers, lakes, caves, and parks in the area.

See also: Moving to St. Louis, Missouri

5) Tennessee

With cheap groceries, transportation, and health care, and something to offer to everyone (be it great food, music, arts, culture, history, or sports), Tennessee ranks among the best – and most affordable – places to live in the country.

The cost of living index in the Volunteer State is 11% lower than the national index and there have been thousands of new job openings in the last few years alone, providing anyone with the opportunity to find their dream job and build their dream life in the state of Tennessee.

See also: Moving to Memphis, Tennessee

6) Michigan

The home state of Kellogg’s, Michigan remains one of the lowest cost of living states in the country – its residents spend about 10% less than the average American for core necessities (with groceries hitting a national low). There has been an increase in home values in recent years, however, so if you’re considering moving to Michigan, it may be a good idea to start planning your relocation as soon as possible.

See also: How to plan a move

7) Kansas

At about 10% below the national cost of living, Kansas is a cheap and worthy place to move to. The Sunflower state has low unemployment and personal income tax rates, low housing prices, and low food and transportation costs.

It is easy to build a comfortable life in Kansas and find a good job in one of the state’s strongest industries – aerospace, bioscience, alternative energy, agriculture and food processing, and logistics and distribution.

See also: Moving to Wichita, Kansas

8) Georgia

Even though the city of Atlanta may be quite expensive, the overall cost of living in Georgia is about 10% lower than the national average. The cheap housing and utility prices in the Peach State and the thriving economy in the area (for the past five years, Georgia has been ranked the top state in the nation to do business) make Georgia a great place to move to and start your new life.

See also: Moving to Atlanta, Georgia

9) Alabama & Wyoming

The Yellowhammer State and the Equality State both have a cost of living index of 89,3 and rank among the top ten cheapest states in the country.

It will be easy enough to find your sweet home in Alabama, even if you’re on a tight budget – the Yellowhammer State has one of the lowest housing prices in the country (but relatively high taxes and somewhat more expansive medical care and utilities as compared to other cheap southern states).

Housing and utilities – as well as healthcare – are exceptionally cheap in Wyoming too.

See also: Tips for moving on a tight budget

10) Indiana

Although the cost of living in Indiana has risen in the last year, the state remains among the most affordable places to live in the US. It has some of the cheapest housing, transportation, and food in the country, and boasts an influx of new tech jobs. You can pursue professional opportunities in education, finance and insurance, healthcare and social assistance, manufacturing and real estate, as well.

In addition to affordable living and abundant employment options, The Hoosier State offers great schools and training programs and various opportunities to experience arts, culture, sporting events, and fairs.

See also: The effects of moving to a new city

11) Iowa

While Iowa is often viewed as a farming state, it has much more than corn fields to offer – you’ll find the third best healthcare system and the fifth best educational system in the country there. In fact, the Hawkeye State is recognized as one of the best states in the nation, with its capital city of Des Moines being ranked the fourth best place to live in the US.

See also: Top 10 cities to move to in the USA

12) Kentucky

Kansas consistently ranks among the cheapest places to live in the US – food costs are about 9% lower than the national average and housing and transportation costs are also quite low. From a professional standpoint, there is a variety of strong industries offering good career opportunities – agriculture, auto manufacturing, energy fuel production, healthcare, etc.

All things considered, the Bluegrass state is an affordable, progressive, and fun place to live in.

See also: Moving statistics 2018

13) Ohio & Nebraska

Another two states with an equal cost of living index (90,8), Ohio and Nebraska both rank among the most affordable places to move to in America.

With some of the cheapest housing costs and medical care available in the country and one of the best business climates in the US, the Buckeye State is a great place to live and work – and even start a business of your own.

The Cornhusker State attracts migrants with cheap food and utility prices and one of the lowest unemployment rates in the country.

See also: Moving to Columbus, Ohio; Moving to Omaha, Nebraska

14) West Virginia

Low food and utility costs make West Virginian one of the cheapest states to live in the US – the Mountain State residents spend about 9 percent less than the average American for core necessities. Although West Virginia has one of lowest median incomes in the nation, the economy of the state is among the fastest growing in the country.

West Virginia is noted for its mountains and rolling hills that provide a wide range of outdoor recreational opportunities, including skiing, whitewater rafting, fishing, hiking, mountain biking, and rock climbing.

See also: 6 good reasons to move house

15) Texas

The second largest state in the US, Texas is traditionally seen as a place of great opportunities and possibilities – along with a low cost of living, the Lone Star State has a strong economy and ample employment options (Texas has the third-fastest-growing economy and the second-highest personal income growth in the nation).

Even the biggest cities like Dallas, Houston, and Austin are more affordable than comparable metro areas in other states because of the high salaries and cheap living essentials in the state.

See also: Moving to Dallas, Texas; Moving to San Antonio, Texas

With a cost of living index of 92, Idaho follows closely behind the above-listed cheapest states to live in the US.

Moving to any of these affordable states will give you the opportunity to improve your financial situation and build the life you’ve always wanted for yourself quickly and easily. Just make sure you pick the right cheap state for you to move to, find cheap ways to move across country, and hire cheap movers for your relocation. Best of luck!