Inflation is rising at a rapid pace and this is letting individuals cut their living costs. This means when inflation is increasing the power of money decreases. That indicates people can buy less with the same amount of money.
In turn, this can lead to people shifting to cheaper goods and services to save money. Let us help you understand with a simple example.
An individual may tend to choose generic groceries instead of branded ones. They may also choose to shop at less discounted prices or shops. No doubt, inflation can lead to people cutting back their non-essentials (like entertainment or travel).
When one side inflation has a great impact on people’s buying behavior. On the other hand, they are looking to shift to the cheapest states to cut down the unwanted costs. Because we all know the fact that the higher the state the higher its expenses would be.
Among different states, here we will uncover the cheapest U.S state to live in. But what is making them to shift the U.S.? There are reasons and we have compiled all.
Why people are choosing to live in the cheapest states in the United States?
There are different reasons why people choose to shift cheapest states:
Living cost is low
The living cost is quite low as compared to other states. This means people can easily afford to live comfortably and are left over with more money. This eventually helps to pay bills and other expenses.
More jobs
The cheapest states have more opportunities towards jobs. The main reason is that businesses are attracted to the lower cost of doing business in the respective states.
Affordable housing plan
The cost of housing is quite low compared to other states. This in turn people can easily afford to buy a home or rent an apartment having to spend a significant portion.
Taxes are lower
Many of the US states have the cheapest taxes to pay as compared to others. This is also the major reason why people are looking to shift cheapest states of the U.S. In this manner, people can keep their income saved for other purposes.
Better quality towards life
Many of the cheapest states offer a better quality of life. These include good schools, safe neighbourhoods, and plenty of open-air activities.
With all of these perks, there are different cheapest U.S States to live in and we will here help you to explore them all.
Top 10 cheapest states to live in
There are different states of U.S that are contributing a great living for people. Since, the economy is rising and so are prices, hence people are looking to move where they can make an affordable living while saving money.
Hence, we here have compiled all of the top 10 cheapest U.S state to live in to let you know why they are into the list. You can easily compare their housing price, groceries and even income tax rate to make wise decision.
1. Mississippi
Found to be relatively cheapest U.S state to live in and there are many reasons to support it. The home price in the country, at $140,818 when compared to national of $425,000. On the other hand, the cost of living is 83.3% of the US average.
Also has the low-income tax rate of 5%.
Cost of living score:Â 41/50 points
Consumer price index Up 3.3%
Housing affordability Score:Â 0.73 out of 2.00
Average Home price: $300,097
Half gallon of milk:Â $2.14
Monthly energy bill:Â $142.63
2. Illinois
Residing in Illinois can also be a good option among cheapest U.S state to live in for those who are looking for great savings. The median home price in the country, at $133,750 when compared to the national median home price of $425,000. The living cost is 92% of the US average which is comparatively low when compared to other states.
Further Illinois also has a diversified economy and in turn a lot of job opportunities. This makes people earn more and save money and in turn helps for their future.
2023 cost of living score:Â 41 out of 50 points (Top States grade: A-)
Consumer price index (June, Midwest Region): Up 2.4%
Housing affordability score:Â 0.92 out of 2.00
Average home price (Decatur): $271,518
Half gallon of milk:Â $2.04
Monthly energy bill:Â $157.85
3. Missouri
Missouri is showing people how to manage decently or to live economically. This is the major reason it is listed among the top 10 cheapest states of the U.S. There are numerous reasons to support it majorly due to low housing cost that starts from $194,226 when compared to the national median house which is $425,000.
On the other hand, the overall cost of living is also low which is around 89.8% of the US average. Comparatively lower taxes of 5.4% as compared to median tax rate of 4.6%.
- 2023 Cost of living score:Â 43 out of 50 points
- Consumer price index: Up 2.4%
- Housing :Â 85 out of 2.00
- Average home price: $272,606
- Half gallon of milk:Â $2.29
- Monthly energy bill:Â $169.33
4. Michigan
Living in Michigan is quite affordable and this is the major reason why people are migrating to the state. This state has the second lowest median home price in the country, at $215,000 when compared to the national median home price of $425,000. In turn, counted to be one of the cheapest U.S state to live in.
The overall cost of living is quite low in terms of groceries, home, and transportation. In addition, has a relatively low-income tax of 4.25% which is in turn lower than the state income tax of around 4.6%.
Because of the diversified economy, the state has many job offers as well. This is making people live in an easy manner.
- 2023 cost of living score:Â 43 out of 50 points
- Consumer price index: Up 2.4%
- Housing cost:Â 93 out of 2.00
- Average home price: $259,015
- Half gallon of milk:Â $2.02
- Monthly Energy Bill:Â $172.32
5. West Virginia
West Virginia is an affordable state to live in as it the state has low housing cost, low cost of living and lower income tax. West Virginia has a great value for people who are looking to live in West Virginia.
Has low median home price at $146,578 which is significantly lower than national median home price of $425,000. In addition, the state has low state income tax rate of 3.25%. This is the major reason why people tend to choose west Virginia.
- 2023 cost of living score:Â 44 out of 50 points
- Consumer price Index: Up 3.3%
- Cost of house:Â 9 out of 2.00
- Average home price: $233,481
- Half gallon of milk:Â $2.01
- Monthly energy bill:Â $178.74
6. Oklahoma
Life seems to be good and easier for people living in Oklahoma. Right from the living standard to groceries, everything is affordable and this is making it to be one of the cheapest U.S state to live in. It has fifth-lowest median home price at $151,469 when compared to national median home price of $425,000.
This is low as compared to national one’s. The income tax rate is 5.25% and is lower than the state income 4.6%.
Oklahoma is quite affordable to live in because it has diversified economy. In addition, it has strong agriculture sector and has a growing industry in energy, manufacturing, and aerospace.
- 2023 cost of living score:Â 44 out of 50 points
- Consumer price index Up 3.3%
- Housing affordability score:Â 81 out of 2.00
- Average Home price : $258,517
- Half Gallon of milk:Â $2.16
- Monthly energy bill:Â $158.83
7. Ohio
Another cheapest U.S state to live in is Ohio because it has a diverse economy with a variety of jobs. This means people who are living in Ohio have more options to save money while living in the U.S
As compared to others, Ohio has the lowest median home price in the country at $215,000 as compared to the national median home price of $425,000.
The overall cost of living is quite low i.e. groceries, transportation, and other expenses are affordable. On the other hand, it has low income tax which is around 3.99% as compared to a median of 4.6%. This is the major reason why Ohio is also one of the cheapest states in the U.S.
- 2023 cost of living score:Â 45 out of 50 points
- Consumer Price index : Up 2.4%
- Housing affordability score:Â 00 out of 2.00
- Average Home price : $285,688
- Half gallon of milk:Â $2.20
- Monthly energy bill:Â $160.09
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8. Indiana
Indiana is one of the cheapest U.S state to live in and is ranked as 7th cheapest by the cost of living. The major factor that contributes is that the cost of housing is quite low. The median home price is $248,100, lower than the national average of $375,300.
The cost of goods and services is $3.06, lower than the national average of $3.17.
Lower income tax which is 3.23% as compared to the national average i.e. 4.64%.
Indiana is one of the great states to live in if you are looking for the cheapest facilities. You can shop around for the best housing plans, goods and services to save money on each one of those.
- 2023 Cost of living score:Â 45 out of 50 points
- Consumer price index: Up 2.4%
- House cost:Â 9 out of 2.00
- Average home price: $296,241
- Half gallon of milk:Â $2.46
- Monthly energy bill:Â $170.38
9. Kansas
Kansas is one of the cheapest states to live in the United States. It is ranked as the third cheapest state by the cost of living.
However, there are several reasons why Kansas is one of the most cheapest U.S state to live in. The median home price is $233,481 as compared to the national average of $375,300.
The cost of goods and services is also low where the avg. price of gas in Kansas is $2.97 as compared to the national average national average of $3.17.
Has no income tax which in turn helps people to save money. So, if you are looking to move to Kansas then you have a number of steps to save money. The state helps to shop around for the best prices on housing, goods and services.
People can easily create a budget and track spending.
- 2023 cost of living score:Â 46 out of 50 points
- Consumer price index: Up 2.4%
- living cost:Â 88 out of 2.00
- Average home price: $314,516
- Half gallon of milk:Â $2.05
- Monthly energy bill:Â $165.13
10. Iowa
Lowa is the Midwestern state in the United State and is ranked as the 5th cheapest U.S state to live in by the cost-of-living index from Missouri Economic Research and Information Center. There are number of reasons why Lowa is the cheapest state of United States
One of the reasons is that its housing is relatively low. This means the median housing price is $243,400, and is significantly lower than the national average of $375,300.
The cost of goods and services is also quite affordable. Here, the average price of gas in Iowa is $3.00, which is lower than the (national average) of $3.17.
Has no state of income tax which helps people to save money.
- 2023 cost of living score:Â 47 out of 50 points
- Consumer price index: Up 2.4%
- The cost of housing:Â 93 out of 2.00
- Average home price (Burlington): $270,071
- Half gallon of milk:Â $2.32
- Monthly energy bill:Â $214.78
Summary
There are some drawbacks available with the cheapest U.S state to live in. This means it has an impact towards good education and healthcare can sometimes be lower. Further the market of job may also be diverse as compared to others.
But we say that it is completely whether or not to live in a cheapest state or not. It is completely (personal decision). There are both pros can con to consider, however, people who are looking for lower cost or affordable living then cheapest states can be the good options.
To this, we have made available for you to look the top 10 cheapest U.S states to live in. You can undertake different information and let you to make a sound decision.
