Escape the High Price of Living in 2023: The Cheapest States to Live
Are you looking to save money on your cost of living? Are rising expenses causing financial strain in your current city or state? If so, you're not alone.
With inflation near a 40-year high, many people across the country are seeking more affordable options for housing, groceries, and other necessities. That's why we've compiled a list of the most cost-effective states to call home.
These states offer a high quality of life at a lower price point, making them an excellent choice for anyone looking to stretch their budget further. Whether you're just starting on your own or looking to downsize and save money in retirement, one of these states may be the perfect fit for you.
To work this out, we took into consideration average household income, median home price, average housing cost, average grocery costs, average utilities, inflation costs, and state income taxes to discover which places in America are the cheapest to live.
Complete List of Cheapest States to Live in America
How to Choose What State You Should Live In
There are many factors to consider when choosing which state to live in. Some people base their decision on the cost of living, the job market, the climate, the quality of schools, the availability of cultural and recreational activities, and the proximity to family and friends. Others may be more concerned with the political climate or the state's history and culture. It can be helpful to list your priorities and then research different states to see how they compare in terms of these factors. You may also want to visit a few states before making a final decision or talk to people who have lived in different states to get their perspective.
Where did Americans Move To and From Last Year?
Every year, North American Van Lines publishes a National Movers Study analyzing their completed moves during the previous year to show what states Americans are moving to the most and which states Americans are moving away from the most. Please visit the Migration Map to read about that study and see the results.
To determine the most affordable states to live in America, we analyzed ten different metrics:
- Average household income
- Median home price
- Mortgage w/ 20% Down @ 7.47%
- Average Rent
- Calculated Average Housing Cost
- Average grocery costs
- Average utilities
- Nov 22 Inflation Costs in $ vs Jan 2021
- State Income Tax Cost
- State Income Tax Rates
These averages come from various sources, including the Bureau of Labor Statistics, SmartAsset.com, Senate.gov, and Numbeo's cost of living database.
Average housing cost was figured assuming 65.4% homeownership vs 34.6% renting according to (The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate at 65.4% in the first quarter of 2022). Mortgage payments were figured off a 7.47% interest rate with 20% down, using the average home price for each state.
We then created a scoring methodology to weighting these different factors.