Least Expensive States

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.

• Mississippi takes the top spot as the least expensive state in the U.S., with a Cost of Living Index value of 85. This means prices are 15% lower than the national average. This is closely followed by Oklahoma and Kansas with index values of 85.8 and 87.5 respectively.
• The southern states dominate the top of the list with Alabama, Georgia, and Tennessee among the top ten least expensive states. These states benefit from lower housing and food costs.
• In contrast, states with high urbanization, like Massachusetts, New York, and California, appear towards the bottom of the list, noted for their higher living costs, especially in housing.
• The most expensive state, according to the Cost of Living Index, is Hawaii with a staggering index value of 184, indicating prices are 84% higher than the national average.
• While cost-effectiveness seems concentrated primarily within southern and central regions, North Dakota, as an exception, ranks relatively high in the list with an index value of 97.1, despite being a northern state.