The cost of living varies significantly across the United States, with some states offering much lower expenses in housing, utilities, transportation, and other essential services. While many factors influence affordability, certain states consistently rank as the most budget-friendly places to live.
Based on data from the Council for Community and Economic Research (C2ER) and insights from MSN, this analysis highlights ten states where the cost of living is the lowest compared to the national average.
In addition to affordability, elements such as median income, unemployment rates, and key industries shape the overall economic landscape, making these states particularly attractive for those seeking a lower cost of living.
West Virginia
According to the Council for Community and Economic Research, West Virginia has the lowest cost of living in the country, at 14.4% below the national average. A major factor contributing to this affordability is its inexpensive housing market, with the lowest median home value among all states.
Charleston, the state capital, offers a cost of living 16% below average, making it an attractive option for residents. The state’s economy has historically been tied to coal mining, while its outdoor recreational activities, including hiking, mountain climbing, and historical landmarks like Harpers Ferry, attract both residents and tourists.
Oklahoma
With a cost of living 13% lower than the national average, Oklahoma is among the most affordable states. Smaller towns like Ponca City offer an even lower cost of living—19.5% below average.
The state features diverse natural landscapes, including the Wichita Mountains, and a unique cultural blend influenced by Southern, Western, and Midwestern traditions. Oklahoma is also notable for its rich Native American history and cowboy culture, which are celebrated through local festivals and traditions.
Kansas
Kansas maintains an affordability advantage with a cost of living 12.5% below the U.S. average. The state offers a variety of living environments, from its vast flat plains to the rolling Flint Hills.
Agriculture plays a significant role in Kansas’ economy, contributing to lower housing and food costs, particularly in rural areas. The state is also known for its thriving agricultural industry, which ensures that essential goods remain relatively affordable.
Mississippi
With a cost of living 12.3% lower than the national average, Mississippi is another budget-friendly option. Tupelo, the birthplace of Elvis Presley, has a cost of living 17.1% below average.
However, Mississippi has the lowest median household income on the list—over $20,000 below the national average. While this presents economic challenges, the state’s low housing costs provide a significant offset. Mississippi is renowned for its musical heritage, particularly rock ‘n’ roll and blues, and for its Southern cuisine, including fried catfish and chocolate pies.
Arkansas
Arkansas has a cost of living 11.3% below the national average. The state is home to Walmart’s headquarters in Bentonville, which serves as a major employer in the region. Arkansas is also known for its natural beauty, including hot springs, caves, and forests, as well as Crater of Diamonds State Park, where visitors can search for real diamonds.
The combination of low housing expenses and outdoor attractions makes it an appealing state for those seeking affordability.
Alabama
With a cost of living 11.2% below the national average, Alabama offers various affordable locations. The city of Florence is the cheapest in the state, with costs 16.4% below the national norm.
Even in Mobile, one of Alabama’s pricier areas, the cost of living remains 6.8% below the national average. The state features diverse landscapes, including beaches and forests, and is a significant player in the U.S. steel industry, thanks to its iron ore and coal deposits.
Missouri
Missouri also has a cost of living 11.2% lower than the national average. While Kansas City and St. Louis are among the more expensive urban areas in the state, they still maintain costs below the U.S. average.
Joplin, a smaller town, offers the lowest cost of living in Missouri, at 14.5% below average. The state is known for its natural beauty, such as the Ozark Mountains, and its strong sports culture, including teams like the St. Louis Cardinals and the Kansas City Chiefs.
Iowa
With a cost of living 9.8% below the national average, Iowa remains an affordable option. Des Moines, the state capital, is one of the most affordable capital cities in the U.S., with a cost of living 13.9% below average.
Iowa’s rural charm is a draw for many, offering affordable housing and outdoor activities such as hiking, fishing, and visits to historical landmarks. The state also has a relatively high median household income, second only to Nebraska among the states listed here.
Tennessee
Tennessee’s cost of living is 9.5% lower than the national average. While Nashville is the state’s most expensive city, its living costs remain 1.2% below the national average.
In contrast, Knoxville offers a more affordable alternative, with a cost of living 13.3% below the U.S. average. Tennessee is renowned for its music industry, particularly country and blues, and for its scenic natural landscapes, including the Great Smoky Mountains.
Nebraska
With a cost of living 9% below the national average, Nebraska combines affordability with economic stability. The state has the lowest unemployment rate among the ten states on this list.
While Nebraska is widely associated with agriculture, it also offers residents varied recreational opportunities, such as attending the College World Series or exploring Chimney Rock. Its low housing costs and strong job market make it an attractive option for those seeking stability and affordability.