Cheapest States to Live In

Factors Affecting Your Cost of Living

Across the United States, the cost of living can vary substantially. For example, what is widely considered a comfortable income in Iowa would be difficult to live on in most of California.

There are many different factors that can influence the cost of living in a particular area. Housing is the most obvious expense, whether you plan to rent or buy your home. Taxes, including both state income taxes and local property taxes, also have a significant impact on an area’s cost of living. Even the price of daily necessities such as gas and groceries can vary by location.

The type of employers in an area can have an impact on the overall cost of living as well. For example, Seattle, home of Microsoft, consistently ranks at the top of the most expensive cities in the United States. Even though the majority of people who live in Seattle don’t work for Microsoft, the company’s high salaries help to inflate the overall cost of living.

What are the Cheapest States to Live In?

Generally, the most affordable places to live in the United States are in the Midwest or Southern part of the country. Alaska, Hawaii, New England, and the West Coast continue to be among the most expensive places to live in the nation.

According to research conducted by the Missouri Economic Research and Information Center, the 10 most affordable states in the US are:

1. Oklahoma
2. Texas
3. Tennessee
4. Arkansas
5. Nebraska
6. South Dakota
7. Missouri
8. Kansas
9. Georgia
10. Mississippi

Additional information about the cost of living in various areas can be found on the following websites:

• Household Income by State
• Taxes by State
• America’s Most Affordable Housing Markets
• Home Prices
• Most and Least Expensive States for Auto Insurance
• Low Cost Locales Where Jobs are Plentiful
• Cost of Living Index for Selected US Cities

Cost of Living Converters

Are you wondering how much money you’d need to have a comparable standard of living in another area? If so, check out one of the following web-based tools:

• Salary.com’s Cost of Living Wizard Tool
• Cost of Living Comparison Calculator
• Best Places Cost of Living Comparison
• Salary Expert Cost of Living Calculator

Other Factors to Consider

While finding the cheapest states to live in may seem like a great way to pick your new home, cost isn’t the only factor you should evaluate. For example:

• What job opportunities are available in your field? If there are very few jobs available in your industry, you may want to think twice before moving.
• Are the schools good? If you have children, or think you may be starting a family in the future, this is a very important consideration.
• How would you describe the local population? If you’re fresh out of college, you may not be happy living in an area populated by retirees.
• What do people do for fun? If you can’t stand to be outside, it’s doubtful you’ll want to move to a state where the only recreational activities available involve camping, hiking, and fishing.
• How far will you be from friends and family? If you plan to travel frequently to see your friends and family, don’t forget to include this expense in your moving budget.

CNN Money has compiled an interesting collection of the best places to live in the United States, divided into categories such as best big cities and locations with the highest number of single residents. Cross-referencing these lists with the cheapest states to live in may help you come up with the perfect destination for your move. MSN Real Estate also has a list called 8 Cheap Places You’d Want to Live that attempts to balance quality of life concerns with the average cost of living.