12 States With the Lowest Cost of Living (2024)

Sometimes the grass looks greener on the other side . . . of the country. Especially when it feels like the cost of living in your part of the country is crazy high.

So, whether you’re sick and tired of paying out the nose for housing, groceries, taxes and utilities (you know,life) or just want a change of scenery, you might be wondering, What are the cheapest states to live in?

I’m glad you asked, and I’ve put together a list of the 12 states with the lowest cost of living. Spoiler alert, though: If you wanted to justify moving to an island paradise, Hawaii didn’t make the cut. But if you’re cool with cornfields versus crashing waves, you’re in luck.

12 Cheapest States to Live in for 2024

Here are the 12 states with the lowest cost of living:

• West Virginia
• Oklahoma
• Kansas
• Alabama
• Mississippi
• Arkansas
• Missouri
• Iowa
• Tennessee
• Indiana
• Georgia
• Michigan

What Is Cost of Living?

Cost of living means exactly what it sounds like—it’s the amount it costs to live somewhere! A cost of living index takes all sorts of expenses into account, like housing, groceries, utilities, transportation, health care, taxes and miscellaneous goods and services.

To find the states with the lowest cost of living, I looked at the cost of living index published by the Council for Community and Economic Research (C2ER). The numbers you see in this article come from thatindex unless otherwise noted.

So, we have 12 states to look at. I’ll dig into how each state’s cost of living, income and unemployment rate compare to the U.S. average.

1. West Virginia

West Virginia’s cost of living is 16.2% below average—making it the lowest in the country. And cheap housing is a big factor in that number. West Virginia has the lowest median home value of all the states on my list.

If you take some country roads to the place where you belong, you’ll arrive in Charleston, the state capital and largest city. The cost of housing in Charleston is about 43% below average!

Let’s see how West Virginia compares to the rest of the U.S.:

*For two-bedroom apartments.

West Virginia has a big coal mining industry and beautiful outdoor areas. You can hike hundreds of trails, climb mountains, and visit places like Harpers Ferry to learn the local history.

2. Oklahoma

Let’s head west! Oklahoma’s average cost of living is 13.6% lower than normal. Oklahoma’s cheapest city is Ponca City. It’s a small town in northern Oklahoma, and if you move there, you can enjoy a cost of living that’s 20.6% below average!

So, what kind of money can you expect to earn in Oklahoma? And how much does housing cost? Let’s take a look:

*For two-bedroom apartments.

If you want to make it big in sports, show biz or the rodeo, you may want to make a pit stop in Oklahoma first. Famous Oklahomans include Mickey Mantle, Brad Pitt, Carrie Underwood and Will Rogers. Plus, people in Oklahoma love celebrating their state’s Native American roots and cowboy culture.

3. Kansas

Kansas is smack-dab in the middle of the American heartland, and its cost of living is 12.7% below the national average. Now, let’s compare housing prices, salaries and unemployment rates in Kansas to the rest of the country:

*For two-bedroom apartments.

Kansas is sometimes called the breadbasket of the U.S. because it grows so much wheat. (Unfortunately, gluten and I don’t get along. But if you’ve got a passion for farming or sourdough starters, consider Kansas.)

4. Alabama

Alabama has the fourth lowest cost of living—11.9% lower than the rest of the U.S. The cheapest city in Alabama is Florence, which has a cost of living that’s 16.1% below the national average. Even the most expensive city, Auburn, is 7.1% below average.

See how Alabama’s housing prices, income and job market stack up to the rest of the U.S.:

*For two-bedroom apartments.

Alabama is known for having a mix of forests and beaches. It’s also one of America’s biggest steelmakers, since the soil contains iron ore and coal—the main ingredients for steel. There’s your fun fact for the day.

5. Mississippi

Mississippi’s cost of living, at 11.7% below the national average, lands it at number five on my list.Tupelo (the birthplace of Elvis!) is the cheapest city in the state at 16.2% below the national average.

Here’s how Mississippi’s housing prices, income and job market compare to the rest of the U.S.:

*For two-bedroom apartments.

While housing is cheap in Mississippi, the state also has the lowest median household income of all the states on my list. (I’m talking $22,000 less than the national average!)

Once you arrive in Mississippi, get ready for some fantastic music and food. This state’s known for rock ’n roll, blues, and tasty treats like fried catfish and chocolate pies.

6. Arkansas

Next up, Arkansas! The cost of living in Arkansas is 11.5% below average. Walmart is based in Bentonville, Arkansas, and is the state’s biggest employer.

Now, let’s check out housing prices, income and the job market in Arkansas compared to the rest of the U.S.:

*For two-bedroom apartments.

Arkansas has amazing natural hot springs, caves and forests. You can live on the plains or in the mountains. And you can actually find real diamonds in Arkansas at Crater of Diamonds State Park. Affordable, natural and full of gems? Talk about a diamond in the rough!

7. Missouri

The cost of living in Missouri is 11.5% lower than the national average. Kansas City is the state’s most expensive place to live, but it’s still 8.7% less than most U.S. cities. The cheapest city, Springfield, has a cost of living around 14.8% below average.

Here’s what housing prices, salaries and the job market look like in Missouri:

*For two-bedroom apartments.

Missouri has plenty of small towns where you can put down roots. You can choose from grassy plains, farmland or the Ozark Mountains.

Missouri’s two biggest cities, St. Louis and Kansas City, are great for sports fans because they have professional sports teams—the Cardinals, the Blues, the Royals, the Chiefs (any Travis Kelce fans out there?)—but they’re also two of America’s most dangerous cities.³⁶So you’ll want to look for neighborhoods that are affordableandsafe.

8. Iowa

At 9.9% below the average cost of living, Iowa is another one of the most affordable states. And the state’s capital, Des Moines, is among the cheapest capital cities in the U.S at 14.1% below average. Wherever you go in the state, you’ll likely find affordable housing (and lots of corn). Let’s take a look:

*For two-bedroom apartments.

More good news: Iowa has the second highest household income out of all the cheapest states. Plus, Iowa has lots of state parks, museums, aquariums and random historical sites, like the place where Grant Wood painted“American Gothic”—you know, the old couple holding the pitchfork.

9. Tennessee

Tennessee’s cost of livingis 9.7% below average. Nashville is the most expensive city in Tennessee (shocker, I know). But living there still costs 3.4% less than the average U.S. city. Want to find someplace cheaper? Head over to Knoxville, where the cost of living is 13.9% lower than average.

Let’s compare Tennessee’s average housing prices, income and job market to the rest of the country:

*For two-bedroom apartments.

Housing prices are pretty high in Tennessee. So before youmove to Tennessee, find outexactlyhow much house you can afford to make sure you don’t go overboard.

Once you arrive, you can enjoy everything from the Great Smoky Mountains and the Ramsey Solutions headquarters (shameless plug!) to boot-scootin’ country music and legendary Memphis barbecue. Heck yeah.

10. Indiana

Indiana’s cost of living is 9.7% less than the U.S. average. And little ole Richmond, Indiana, has a cost of living 18.1% below average! But what about housing? And what’s up with the job market? Take a look:

*For two-bedroom apartments.

Beyond the numbers, Indiana is surprisingly beautiful. It has everything from sand dunes up north to forests and limestone caves in the south. This state also produces lots of popcorn—so bring your movie collection along.

11. Georgia

If Georgia is on your mind, maybe it’s because the cost of living in Georgiais 8.7% below the national average.

Atlanta drives that number down a bit, with a cost of living that’s just 3.4%lowerthan average. Fortunately, the other smaller cities on Georgia’s cost of living index are farther below the average U.S. city.

So, how much does housing cost in Georgia, and how much do most people make? See for yourself:

*For two-bedroom apartments.

Homes in the Peach State aren’t super cheap. But on the bright side, household income is close to the national median. And Georgia has alot to offer—like colleges, the Appalachian Mountains, sandy beaches along the Atlantic, beautiful architecture, and Southern charm. And of course, peaches—millions of peaches, peaches for me!

12. Michigan

Michigan’s cost of living is 8.2% below average. The cost of living in Detroit is 3.1% higher than the national average—but if you love Detroit-style pizza, maybe it’s worth it. But Detroit is also the most dangerous city in the U.S.⁵⁷ Kalamazoo, a city about two hours from Detroit, is among the cheapest places in the whole country with a cost of living 16% below average.

Michiganders paymore for car insurance than almost anywhere else in America. So, you’ll need atrusted insurance agentto help you get the right coverage at the right price.

Here’s how Michigan’s housing prices and job market compare nationally:

*For two-bedroom apartments.

Michigan is known for its automotive industry, the Great Lakes and winter sports—ice fishing, skiing and hockey.

Should You Move to a State With a Lower Cost of Living?

The truth is, movingonlybased on the cost of living may not be the best idea. Moving to a new state really depends on your financial situation, career goals and lifestyle—especially since every state has its pros and cons. Distance also matters! A cross-country move costs way more than a cross-state move.

That said, it’s important to live somewhere you can actually afford—so find out if the cheapest states to live in will fit you and your family. To get started, try our free Cost of Living Calculator and compare your current hometown to cities in the most affordable states.

Making the Move

Maybe you’ve already made up your mind—you’re sick of sky-high prices and ready to head to greener pastures. Time to pack your bags!

The first step is to get a great real estate agent on your side, and that’s where our RamseyTrusted agents come into play. They’re top-performing agents who live and work near you—or where you want to move. Whether you want to move to Tupelo or Kalamazoo, they’ll take care of you!

Find a RamseyTrusted real estate agent today!

George Kamel is the #1 national bestselling author of Breaking Free From Broke, a personal finance expert, a certified financial coach through Ramsey Financial Coach Master Training, and a nationally syndicated columnist. He’s the host of the George Kamel YouTube channel and co-host of Smart Money Happy Hour and The Ramsey Show, the second-largest talk radio show in America. George has served at Ramsey Solutions since 2013, where he speaks, writes and teaches on personal finance, investing, budgeting, insurance and how to avoid consumer traps. He’s been featured on Fox News, Fox Business and The Iced Coffee Hour, among others. Learn More.