What states have the lowest cost of living?
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Is your state’s cost of living giving you a case of the blues? You’re not alone. According to a recent study, the average American spends about $4,000 per year on housing costs and about $3,500 per year on transportation costs. And that’s not even taking into account the rising costs of health care, child care, and education. If you’re looking for a more affordable place to call home, check out these 10 states with the lowest cost of living in 2022. From Arkansas to West Virginia, you might be surprised at how much your dollar can stretch in these places. So whether you’re fed up with high taxes or want to save money on gas and groceries, one of these states could be the perfect fit for you.
Georgia
Georgia is a great place to live! The people are friendly and there is always something to do. There are plenty of parks, theaters, and restaurants in addition to the usual shopping malls and grocery stores. The climate is mild, with average temperatures in the winter rarely below freezing and summer temperatures rarely above 100 degrees F. Georgia also has a wide variety of landscapes, from mountains in the north down to beaches on the coast. It’s definitely a great place to raise a family or retire!
The Numbers
- Average Home Price: $287,458
- State Income Tax: 1%-5.75%
- Population: Estimated 10.8 million people
Kansas
Kansas is like the America that people think of in the movies—flat, vast, and with big open skies. It’s a great place to raise kids and to experience all four seasons. The people are friendly and down-to-earth, and there’s a lot of community spirit. That said, it can also be quite challenging to live in Kansas because it can be quite windy and there’s not a lot of industry or cultural attractions. It can also get quite cold in the winter.
The Numbers
- Average Home Price: $194,951
- State Income Tax: 3.10%-5.70%
- Population: Estimated 2.9 million people
Oklahoma
Living in Oklahoma is like … living in Oklahoma! It’s a great place to raise a family, with plenty of affordable housing and friendly people. The weather is warm and typically sunny, which is perfect for those who love the outdoors. There are plenty of festivals and events to enjoy throughout the year, and the cost of living is relatively low compared to other states. If you’re looking for a relaxed, down-to-earth lifestyle, Oklahoma might be just right for you!
The Numbers
- Average Home Price: $167,450
- State Income Tax: 0.5%-5.0%
- Population: Estimated 3.9 million people
Arkansas
Arkansas is a great place to live. The people are friendly and there is always something to do. The natural beauty of the state is amazing and there are plenty of parks and forests to explore. One of my favorite things about Arkansas is the Buffalo National River. It’s a beautiful park with amazing scenery and lots of opportunities for outdoor recreation. I highly recommend it!
The Numbers
- Average Home Price: $166,566
- State Income Tax: 0%-6.6%
- Population: Estimated 3.0 million people
Indiana
Indiana is a great place to live, with plenty of things to do and see. There are lots of beautiful state parks, like Brown County and Pokagon, where you can enjoy the outdoors, as well as plenty of museums and shopping districts. The people in Indiana are friendly and welcoming, and there’s always something going on. Whether you’re looking for a small-town feel or big-city excitement, Indiana has it all.
The Numbers
- Average Home Price: $206,422
- State Income Tax: 3.23%
- Population: Estimated 6.8 million people
Tennessee
Tennessee is known for its rolling hills, music, and country living. It’s a great place to live if you’re looking for a slower pace of life and plenty of outdoor activities. The people are friendly and welcoming, and there’s always something going on in the state’s towns and cities.
Some of Tennessee’s biggest attractions include the Smoky Mountains National Park, Graceland (home of Elvis Presley), Beale Street (in Memphis), and Nashville, home of the Grand Ole Opry. There are also plenty of small towns with their own unique charm scattered throughout the state.
The Numbers
- Average Home Price: $269,838
- State Income Tax: 1%-5.75%
- Population: Estimated 6.9 million people
West Virginia
West Virginia is a great place to live if you love the outdoors. The state has lots of parks with trails for hiking, biking, and horseback riding. There are also lakes and rivers for fishing, boating, and swimming. The people in West Virginia are friendly and welcoming. They are known for their sense of community spirit and are always willing to help out a neighbor. The cost of living in West Virginia is relatively low, so it’s a great place to save money.
The Numbers
- Average Home Price: $126,948
- State Income Tax: 3%-6.5%
- Population: Estimated 1.8 million people
Alabama
Alabama is known for its southern hospitality, diverse landscape, and rich history. Living in the state of Alabama can be a great experience. There are plenty of things to do and see in this beautiful state. Some of the most famous attractions include the Birmingham Civil Rights Institute, the Vulcan Statue, and the Montgomery Zoo. Alabama is also known for its many delicious dishes. Southern cuisine is definitely popular here, but there are also plenty of Mexican and Italian restaurants to choose from.
The Numbers
- Average Home Price: $189,976
- State Income Tax: 2%-5.0%
- Population: Estimated 5.0 million people
Missouri
Missouri is known for its endless plains, rolling hills, and Midwestern culture. The state has a rich history and offers plenty of activities for residents and visitors alike. Living in Missouri can be enjoyable, especially if you’re interested in nature or enjoy spending time outdoors. The state is home to miles of hiking trails, beautiful lakes and rivers, and plenty of parks. There are also a number of small towns with a strong sense of community that is worth exploring.
The Numbers
- Average Home Price: $213,181
- State Income Tax: 1.5%-5.4%
- Population: Estimated 6.1 million people
Mississippi
Mississippi is best known for its music, Delta blues in particular. The state has also been called the ” Hospitality State” and the “Magnolia State”. Living in Mississippi is like living in any other place in the US. There are pros and cons to every state, and it really just depends on what you’re looking for. Some people may enjoy the Southern hospitality and slower pace of life, while others may find it too quiet or too hot and humid. Overall, it’s a great place to live if you’re looking for a friendly community and a bit of Southern charm.
The Numbers
- Average Home Price: $157,885
- State Income Tax: 0%-5%
- Population: Estimated 2.9 million people
What state has the lowest cost of living?
According to the Missouri Economic Research and Information Center, West Virginia has the lowest cost of living in the country. In fact, it’s almost 20% lower than the national average. Housing is the biggest factor in determining a state’s cost of living, and in West Virginia, housing is almost 50% cheaper than the national average. Utilities, transportation, and healthcare are also more affordable in West Virginia than in other states.
If you’re looking for a place to live where your dollar will go a little further, one of these ten states may be the right choice for you. The cost of living in each state varies, so it’s important to do your research and find the right place for you. What are some factors that are important to you when considering where to live? Cost of living, climate, job market, or quality of life? Weigh your options and choose the best place for you!
What’s the cost of living in your state?
Sources
- Home Values: https://www.zillow.com/home-values/
- Income Tax: https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/
- Population: https://www.census.gov/quickfacts/fact/table/US/PST045221
