The Frugal Frontier: Uncovering America’s Most Affordable States

While the allure of a bargain-priced home might tempt you into uprooting your life for a move to an unfamiliar small town, it’s essential to approach such decisions with caution. Relocating solely for a cheaper house might not always be the wisest choice, but that doesn’t mean you shouldn’t explore options in more budget-friendly states.

Despite the initial reluctance you might feel about moving to a rural area, there are numerous affordable locales across the country worth considering for your next chapter. If you’re set on relocating, it’s advisable to engage a reputable moving company. Forbes has compiled a list of the best moving companies, serving as a valuable resource to kick-start your research.

To aid your exploration, we’ve curated a list of the 10 cheapest states to live in for 2022, using the cost of living index as a guiding metric to understand what makes these states so financially attractive.

Understanding the Cost of Living
At its core, the cost of living encompasses the expenses required to cover basic necessities in a particular location, including housing, utilities, transportation, healthcare, and groceries. Researchers compile data on these expenses to formulate a cost of living index, allowing for better comparison across different regions.

The cost of living index is calibrated against the national average, with a score of 100 representing the baseline. States with scores below 100 are deemed to have a cheaper cost of living than the national average, while scores above 100 indicate higher costs.

Consideration Beyond the Index
While the cost of living index provides a snapshot, it’s essential to delve deeper into other factors. Assessing average salaries, economic indicators, and employment rates offers insight into the overall economic health of your prospective destination. Keep in mind that lower costs of living often correlate with lower wages.

Housing availability and affordability are critical considerations. Compare the purchasing power of your budget across different locations to gauge the feasibility of homeownership or rental. Location also plays a pivotal role, with many budget-friendly states clustered in regions like the Southeast and Midwest.

Ultimately, while affordability is a crucial factor, it’s just one piece of the puzzle. Consider your desired lifestyle, leisure activities, and access to amenities when making your decision. By weighing all these factors, you can embark on your next adventure with confidence, armed with the knowledge to make the best choice for your future.

10 Cheapest States To Live In :

Mississippi: Affordable Living Amidst Challenges

Mississippi reigns as the most economical state to reside in within the United States, boasting a cost of living index score of 83.3. Remarkably, it also touts the lowest average housing costs nationwide, dipping 33.7% below the national average. With a median single-family home priced at approximately $140,818, Mississippi beckons budget-conscious individuals seeking affordable housing options.

However, beneath this veneer of affordability lie significant socio-economic challenges. Mississippi grapples with the ignominy of harboring the highest poverty rate in the nation, with 19.5% of its populace languishing below the poverty line. Moreover, economic instability, coupled with deficiencies in the education and healthcare sectors, casts a pall over the state’s overall quality of life, warranting its inclusion among the least favorable places to reside in.

Pros:

1. Lowest Average Housing Costs: Mississippi offers the lowest average housing costs nationwide, providing an enticing prospect for individuals seeking economical living arrangements.
2. Lowest Average Transportation Costs: The state further distinguishes itself by boasting the lowest average transportation costs in the nation, easing the financial burden on residents.
3. Climate: With warm weather and mild winters, Mississippi provides a favorable climate conducive to outdoor activities and leisure pursuits.
4. Culinary Delights: Enthusiasts of Southern comfort food will find solace in Mississippi’s culinary landscape, abundant with delectable yet affordable gastronomic offerings.

Cons:

1. High Poverty Rate: Mississippi grapples with the highest poverty rate in the country, presenting a formidable socio-economic challenge that undermines the well-being of its residents.
2. Economic Concerns: The state confronts economic uncertainties, manifesting in fewer job opportunities and diminished prospects for socio-economic advancement.
3. Quality of Education and Healthcare: Mississippi’s education and healthcare systems grapple with inadequacies, compromising the overall quality of life for its inhabitants and detracting from its desirability as a residential destination.

In essence, Mississippi epitomizes the juxtaposition of affordability and adversity. While its allure as the cheapest state to live in is undeniable, prospective residents must weigh the allure of affordable living against the backdrop of socio-economic challenges that underscore the state’s complex narrative.

Kansas: Affordable Living Amidst Natural Challenges

Ranked as the second most economical state to reside in, Kansas garners acclaim with a commendable cost of living index score of 86.5. Notably, the state offers particularly affordable housing options, securing the third spot for cheapest housing costs nationwide, with the median price of a single-family home hovering around $176,898. Additionally, Kansas boasts one of the lowest unemployment rates in the nation, signaling a robust economy conducive to sustainable livelihoods.

However, despite its economic resilience, Kansas contends with a unique set of challenges, primarily stemming from its geographical landscape. The state grapples with the specter of frequent tornadoes and bouts of extreme droughts, underscoring the imperative for residents to remain vigilant and prepared in the face of natural adversities.

Pros:

1. Affordable Housing: Kansas offers housing costs that are 27.4% below the national average, providing residents with an attractive proposition for securing affordable living arrangements.
2. Low Unemployment Rate: The state boasts one of the lowest unemployment rates in the country, indicative of a thriving economy that fosters employment opportunities and financial stability.
3. Barbecue Culture: Enthusiasts of savory barbecue fare will find themselves in culinary paradise in Kansas, where the vibrant barbecue culture serves as a testament to the state’s gastronomic delights.

Cons:

1. Natural Disasters: Kansas contends with the perennial threat of tornadoes and extreme droughts, necessitating residents to adopt proactive measures and preparedness strategies to mitigate the impact of these natural calamities.
2. Proximity to Airports: While proximity to airports may be construed as a convenience by some, others may perceive it as a drawback due to associated noise pollution and disruptions to tranquility.

In essence, Kansas epitomizes the marriage of affordability with environmental resilience. While its economical living conditions and robust job market are undeniably appealing, residents must navigate the challenges posed by the state’s susceptibility to natural disasters. By embracing preparedness measures and celebrating the cultural richness that defines Kansas, residents can forge a resilient and fulfilling life amidst the prairie landscapes of the Sunflower State.

Alabama: Where Affordability Meets Regional Charms

Nestled as the third most affordable state to dwell in, Alabama exudes its signature charm with a commendable cost of living index score of 87.9. The state’s allure is further amplified by its exceptionally affordable housing market, boasting a median home price of $170,184, second only to Mississippi in affordability. Additionally, Alabama distinguishes itself with low transportation and healthcare costs, enhancing its appeal as an economical residential destination.

Despite these economic virtues, Alabama grapples with socio-economic disparities, exemplified by a significant portion of its population residing below the poverty line. Nevertheless, the state’s unemployment rate remains impressively low at 2.9%, underscoring its resilience in fostering economic stability and sustainable livelihoods.

Pros:

1. Affordable Housing: Alabama offers housing costs that are 29.9% below the national average, presenting residents with an enticing opportunity to secure budget-friendly living accommodations.
2. Low Transportation and Healthcare Costs: The state boasts low transportation and healthcare costs, alleviating financial burdens on residents and enhancing overall affordability.
3. Proximity to the Gulf Coast: Alabama’s geographical proximity to the picturesque Gulf Coast affords residents unparalleled access to pristine beaches and coastal retreats, enriching their quality of life with natural splendor and recreational opportunities.

Cons:

1. Subpar Healthcare System: Despite its affordability, Alabama contends with challenges in its healthcare system, necessitating improvements to enhance access and quality of care for residents.
2. Dry Counties and Alcohol Restrictions: Certain counties in Alabama enforce restrictions on alcohol consumption and purchase, posing limitations on residents’ recreational choices and social liberties.

In essence, Alabama emerges as a beacon of affordability intertwined with regional allure. While its economical living conditions and scenic coastal vistas beckon prospective residents, addressing socio-economic disparities and healthcare shortcomings remains imperative for ensuring the well-being and prosperity of Alabama’s diverse populace.

Oklahoma: A Tapestry of Affordability Amidst Natural and Social Challenges

Taking the fourth spot on our roster of affordable states is Oklahoma, boasting an overall score of 87.9 on the cost of living index. Oklahoma shines as one of the most economically advantageous states, particularly excelling in affordability across key sectors such as healthcare, groceries, and housing. With a median home price of $151,469, Oklahoma offers residents the promise of comfortable living arrangements at a fraction of the national average cost.

However, beneath this veneer of affordability lie formidable socio-economic challenges. Oklahoma grapples with one of the highest poverty rates in the nation, standing at 15.1%, mirroring the struggles faced by its counterparts like Mississippi. Furthermore, the state’s healthcare and education systems often find themselves under scrutiny, drawing comparisons to states with similar challenges, such as Mississippi.

Pros:

1. Affordable Housing: Oklahoma boasts housing costs that are 25.3% below the national average, rendering homeownership a viable and economical prospect for residents.
2. Economical Healthcare and Grocery Costs: The state distinguishes itself with healthcare and grocery costs that are 5.5% below the national average, contributing to enhanced affordability and financial well-being for its populace.
3. Varied Climate: Oklahoma experiences all four seasons, featuring mild winters and hot summers, offering residents a diverse and dynamic climate conducive to outdoor pursuits and recreational activities.

Cons:

1. Tornadoes: Oklahoma’s geographical location predisposes it to the threat of tornadoes, necessitating residents to remain vigilant and prepared in the face of natural disasters.
2. Challenges in Education and Healthcare: The state contends with challenges in its education and healthcare systems, grappling with issues of accessibility and quality that warrant concerted efforts for improvement.
3. Landscape: While offering natural beauty in certain areas, Oklahoma’s landscape is often characterized as monotonous by some, lacking the scenic diversity found in other regions.

In essence, Oklahoma emerges as a bastion of affordability amidst a backdrop of natural and social challenges. While its economical living conditions and climatic diversity offer residents a myriad of opportunities, addressing socio-economic disparities and bolstering essential services remains imperative for fostering a thriving and inclusive community within the Sooner State.

Georgia: Balancing Affordability with Urban Appeal

Ranked fifth on our list of affordable states, Georgia, aptly nicknamed the Peach State, boasts a commendable overall score of 88.8 on the cost of living index. Georgia stands out for its significantly lower-than-average housing costs, as well as its economical transportation and utility expenses. With a median cost of $246,272 for a single-family home, Georgia offers residents the promise of affordable homeownership amidst a diverse array of landscapes.

However, beyond its economic advantages, Georgia captivates with its vibrant urban centers, particularly Atlanta, which serves as a bustling hub of commerce and culture in the South. Despite its allure as a fun and dynamic state, Georgia grapples with challenges such as hot and muggy summers and an abundance of allergy-producing plants, factors that may detract from its overall appeal for some residents.

Pros:

1. Affordable Housing: Georgia boasts housing costs that are 25.6% below the national average, presenting residents with an attractive opportunity to secure affordable living accommodations.
2. Economical Utilities: The state offers utility costs that are 9.5% below the national average, further enhancing its affordability and financial appeal for residents.
3. Diverse Natural Landscape: From the lush forests of the North Georgia mountains to the pristine beaches of the Atlantic coast, Georgia’s diverse natural landscape provides residents with ample opportunities for outdoor recreation and exploration.
4. Proximity to Urban Centers: Georgia’s strategic location affords residents convenient access to bustling urban centers like Atlanta and Savannah, offering a myriad of cultural, educational, and employment opportunities.

Cons:

1. Allergy-Inducing Plants: Georgia’s lush vegetation includes many allergy-producing plants, posing challenges for individuals prone to allergies and respiratory issues.
2. Hot and Muggy Summers: The state’s summers are characterized by hot and muggy conditions, which may be uncomfortable for some residents, particularly those unaccustomed to the Southern climate.

In essence, Georgia strikes a delicate balance between affordability and urban vibrancy. While its economical living conditions and proximity to dynamic urban centers make it an appealing destination for many, residents must contend with climatic challenges and environmental factors inherent to the region. By embracing its diverse landscapes and cultural richness, Georgia offers residents a compelling blend of affordability and urban allure amidst the Southern hospitality of the Peach State.

Tennessee: Where Affordability Harmonizes with Cultural Riches

Claiming the sixth spot on our list of affordable states, Tennessee beckons with a commendable score of 89.0 on the cost of living index. Housing prices in the state hover slightly below its Southern neighbor, with a median price of $230,253 for a single-family home. Despite grappling with a relatively high poverty rate of 13.8%, Tennessee distinguishes itself by maintaining an unemployment rate lower than the national average at 3.4%. A unique allure of the state lies in its absence of state income tax on earned wages, further enhancing its appeal to residents seeking fiscal prudence.

Beyond its economic advantages, Tennessee boasts a rich cultural tapestry, steeped in the musical legacies of country, rock, blues, and jazz. From the vibrant streets of Nashville to the soulful melodies of Memphis, Tennessee’s musical heritage captivates residents and visitors alike, offering a unique glimpse into the heart and soul of American music.

Pros:

1. Affordable Housing: Tennessee offers housing costs that are 20.7% below the national average, providing residents with an attractive opportunity to secure affordable living accommodations.
2. No State Income Tax: The absence of state income tax on earned wages is a significant draw for residents, contributing to enhanced financial well-being and prosperity.
3. Rich Musical History: Tennessee’s rich musical history permeates the state, offering residents an immersive cultural experience and serving as a testament to the enduring legacy of American music.
4. Whiskey: Tennessee’s renowned whiskey distilleries offer residents and visitors alike the opportunity to savor the rich flavors and traditions of this iconic Southern spirit.

Cons:

1. High Poverty Rate: Tennessee grapples with a relatively high poverty rate of 13.8%, underscoring the socio-economic disparities that persist within the state.
2. Increased Traffic: The rapid expansion of cities in Tennessee has led to increased traffic congestion, posing challenges for residents navigating urban centers and commuting to work.

In essence, Tennessee embodies a harmonious blend of affordability and cultural richness. While its economical living conditions and tax advantages appeal to residents seeking financial stability, the state’s vibrant musical heritage and culinary delights offer a rich tapestry of experiences for all who call Tennessee home. By embracing its cultural legacies and addressing socio-economic challenges, Tennessee continues to thrive as a beacon of affordability and cultural vibrancy in the heart of the Southeast.

Missouri: Bridging Affordability and Regional Diversity

Seventh on our roster of affordable states, Missouri boasts an impressive overall cost of living index score of 89.8. Situated at the crossroads of affordability, Missouri offers a median single-family house cost of $194,226, making it an appealing compromise for those torn between the allure of the South and the charm of the Midwest.

While Missouri excels in affordability, particularly with housing costs 19.7% below the national average, it grapples with challenges inherent to urban centers, including relatively high crime rates. Moreover, the state contends with climatic adversities, with hot summers and the looming threat of tornadoes punctuating its meteorological landscape.

Pros:

1. Affordable Housing: Missouri offers housing costs that are 19.7% below the national average, providing residents with an attractive opportunity to secure affordable living accommodations.
2. High Minimum Wage: The state boasts a high minimum wage of $11.15, bolstering financial stability and prosperity for its workforce.
3. Robust Job Market: Missouri’s diverse economy sustains a robust job market across various fields, offering residents ample employment opportunities and career prospects.

Cons:

1. Crime Rates: Urban centers in Missouri contend with relatively high crime rates, posing challenges for residents and law enforcement agencies alike.
2. Climatic Adversities: The state experiences hot summers and frequent tornadoes, necessitating residents to adopt proactive measures and preparedness strategies to mitigate the impact of these natural calamities.

In essence, Missouri emerges as a beacon of affordability amidst the backdrop of regional diversity. While its economical living conditions and prosperous job market appeal to prospective residents, addressing urban crime rates and navigating climatic adversities remain imperative for fostering a safe and resilient community within the Show-Me State.

Iowa: Where Affordability Meets Quality of Life

Eighth on our compilation of affordable states, Iowa brings a quintessential Midwestern charm with a commendable score of 89.9 on the cost of living index. Unlike many states on this list, Iowa boasts a poverty rate lower than the national average, standing at 11%. With a median cost of $167,036 for a single-family home, Iowa offers residents an enticing blend of affordability and quality of life.

In addition to its economic advantages, Iowa shines as a sleeper state, ranking ninth on WalletHub’s list of best states to live in. This accolade is attributed to its robust economy and exemplary education system, underscoring Iowa’s commitment to fostering prosperity and well-being for its residents. Moreover, Iowa’s distinction as the home of the Ice Cream Capital of the World, Le Mars, adds a delectable touch to its cultural landscape.

Pros:

1. Affordable Housing: Iowa offers housing costs that are 24% below the national average, providing residents with an attractive opportunity to secure budget-friendly living accommodations.
2. High Quality of Life: Iowa ranks as one of the best states to live in, thanks to its strong economy, exemplary education system, and commitment to fostering prosperity and well-being for its residents.
3. Exemplary Education System: Iowa boasts a highly ranked education system, providing students with access to quality educational opportunities and setting them on the path to success.
4. Culinary Delight: As the home of the Ice Cream Capital of the World, Le Mars, Iowa, residents have the privilege of indulging in a myriad of delectable frozen treats, adding a sweet touch to their culinary experiences.

Cons:

1. Cold Winters: Iowa’s winters are characterized by frigid temperatures and heavy snowfall, posing challenges for residents unaccustomed to the harsh Midwestern climate.
2. Geographical Limitations: Iowa lacks geographical features such as mountains or beaches, limiting recreational opportunities for outdoor enthusiasts.

In essence, Iowa epitomizes the harmonious convergence of affordability and quality of life. While its economical living conditions and strong educational infrastructure offer residents a solid foundation for success, addressing climatic challenges and embracing its cultural richness remains imperative for fostering a vibrant and inclusive community within the Hawkeye State.

West Virginia: Where Scenic Beauty Meets Economic Realities

Claiming the ninth spot on our list, West Virginia emerges as a beacon of affordability, boasting a commendable score of 90.5 on the cost of living index. Nestled within the Appalachian region, West Virginia offers residents an unparalleled blend of natural splendor and economic advantages. With the average cost of a single-family home standing at a remarkable $117,639, West Virginia presents one of the most affordable housing markets in the nation.

However, despite its economical housing values and picturesque landscapes, West Virginia faces socio-economic challenges that detract from its desirability as a residential destination. Concerns surrounding economic growth and the education system have often placed West Virginia in the same breath as Mississippi, relegating it to lists of the worst states to live in.

Pros:

1. Affordable Housing: West Virginia offers housing costs that are 21.4% below the national average, providing residents with an attractive opportunity to secure affordable living accommodations amidst the scenic beauty of the Appalachian landscape.
2. Scenic Landscape: From the majestic peaks of the Allegheny Mountains to the winding country roads that traverse its verdant valleys, West Virginia’s natural beauty captivates residents and visitors alike, offering a tranquil escape from the hustle and bustle of modern life.
3. All Four Seasons: Residents of West Virginia experience all four seasons in their full splendor, from vibrant springs to crisp autumns, providing ample opportunities for outdoor recreation and seasonal festivities.

Cons:

1. Challenging Job Market: West Virginia contends with a challenging job market, characterized by limited employment opportunities and sluggish economic growth, posing challenges for residents seeking gainful employment and career advancement.
2. High Poverty Rates: The state grapples with high poverty rates, underscoring socio-economic disparities that impact the well-being and prosperity of its residents.
3. Perception as a Less Desirable State: Despite its scenic beauty and affordable housing, West Virginia is often perceived as one of the worst states to live in, owing to concerns surrounding economic stagnation and deficiencies in the education system.

In essence, West Virginia embodies the juxtaposition of scenic beauty and economic realities. While its picturesque landscapes and affordable housing market offer residents a tranquil haven amidst the Appalachian wilderness, addressing socio-economic challenges and reshaping its perception as a less desirable state remain imperative for fostering a thriving and inclusive community within the Mountain State.

Indiana: Where Affordability Meets Academic Excellence

Completing our roster of top 10 affordable states is the illustrious state of Indiana, boasting a commendable score of 90.6 on the cost of living index. With all expenses ranked lower than the national average, Indiana stands out for its particularly appealing housing costs, with the average single-family home priced at a modest $185,805. Despite falling in the middle of the road on lists for the best states to live in, Indiana distinguishes itself with one of the lowest unemployment rates in the country, standing at an enviable 2.2%.

While Indiana’s economic stability and affordability serve as primary draws for residents, the state also boasts a rich academic landscape, with renowned institutions such as Purdue University and the University of Notre Dame contributing to its intellectual vibrancy. However, Indiana contends with climatic challenges, including cold winters, and grapples with social issues such as high rates of drug addiction and overdoses.

Pros:

1. Affordable Housing: Indiana offers housing costs that are 21.7% below the national average, providing residents with an attractive opportunity to secure budget-friendly living accommodations amidst the heartland of America.
2. Low Unemployment Rate: With a low unemployment rate of 2.2%, Indiana fosters economic stability and prosperity for its residents, offering ample employment opportunities and career prospects.
3. Academic Excellence: Indiana is home to esteemed universities such as Purdue and the University of Notre Dame, enriching its intellectual landscape and offering students access to world-class educational opportunities.

Cons:

1. Cold Winters: Indiana’s winters are characterized by cold temperatures and heavy snowfall, posing challenges for residents navigating the harsh Midwestern climate.
2. Perceived Boredom: Some residents and outsiders perceive Indiana as a bit dull or boring, lacking the vibrant cultural scenes found in larger metropolitan areas.
3. Social Challenges: Indiana faces social challenges such as high rates of drug addiction and overdoses, necessitating concerted efforts to address and mitigate these issues for the well-being of its residents.

In essence, Indiana epitomizes the convergence of affordability, academic excellence, and socio-economic challenges. While its economical living conditions and esteemed universities offer residents a solid foundation for success, addressing climatic challenges and social issues remains imperative for fostering a thriving and inclusive community within the Hoosier State.

Absolutely, relocating to one of the cheapest states can indeed offer significant financial advantages, but it’s essential to approach such a decision with careful consideration. Beyond just the cost of living, it’s crucial to assess factors like average wages, job prospects, and the overall economic landscape of your prospective destination.

Delving into the housing market is also crucial. Understanding what properties are available and how far your budget can stretch will ensure you make an informed decision about your living arrangements.

Equally important is envisioning the lifestyle you desire. Consider the recreational opportunities, cultural amenities, and natural attractions that are important to you. Whether it’s hiking in scenic landscapes, enjoying vibrant city life, or immersing yourself in cultural events, your chosen location should align with your lifestyle preferences.

Ultimately, regardless of which state you choose to call home, thorough research and consideration of all relevant factors will empower you to make the best decision for your next chapter. May your relocation be the start of an exciting new adventure filled with opportunity and fulfillment.