A low cost of living can significantly impact quality of life and financial well-being. In the United States, the southern and central regions provide the most cost-effective lifestyle, with a lower than average Cost of Living Index. This index measures the relative cost of living across the states, considering variables like housing, transportation, healthcare, food, childcare, and taxes. The national average for each index is 100, so an index value lesser than 100 means the costs are lower than the national average.
Topping the list for the least expensive states in regards to cost-of-living is Mississippi with an index of 85, reflecting that prices are 15% lower than the national average. Following closely is Oklahoma with an index of 85.8.
Third on the list you’ll find Kansas, with a cost-of-living index of 87.5, emphasizing that mid-western charm can also come with a cost-effective lifestyle. Meanwhile, Alabama ranks at number four with an index of 88.1, exhibiting that southern hospitality doesn’t necessarily come with a steep price tag.
Georgia, another southern state, ranks fifth with an index of 88.6, reflecting the region's lower housing and food costs. Missouri follows suit with an index of 89.1, which showcases its affordability in costs for necessities. Midwest state Iowa is next with a cost of living index of 89.2. This is followed by Indiana, another Midwest state, with an index of 89.9.
West Virginia claims ninth spot with an index of 90, indicating that this eastern state can also offer a cost-effective style of living. Lastly, Southern State Tennessee rounds out our list of the 10 least expensive states, with an index of 90.2, keeping stride with its other southern neighbors in providing a lower cost lifestyle.
Ten least expensive states are: