Identifying States with the Most Affordable Housing and Cost of Living

One of the most important things to consider if you want to move is affordability. You might find a state with affordable housing but high utility costs. Some states might also have high living costs with well-paying jobs.

Comparing housing and living costs across all states in the United States might be difficult. However, the cost of living index has made this easy. It is a method used to calculate affordability by finding out the amount of money needed for basic expenses.

These might include things such as healthcare, transportation, utilities, food, and housing. Adding all these expenses, you can find a state’s total living cost. Here are some of the states with the lowest housing costs and costs of living.

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Mississippi has the lowest housing and living costs in the U.S. Its living cost index is 83.3. The state’s housing cost contributes largely to the low cost of living. It has a housing index of 66.4. The median cost of a home is $140,818.

Even if other expenses were high, Mississippi would still be among the most affordable states to live in due to the low costs of housing. Unfortunately, Mississippi has among the lowest wages in the U.S. with just a $46,511 median income per household.

The rate of unemployment is also high, at about 3.6%. According to Statista, 19.4% of people in Mississippi lived below the poverty line in 2021. Even though the cost of living and housing are low in Mississippi, it is important to note that the state does not have many well-paying jobs.


Alabama is another state with low housing and living costs in America. It has a living cost index of 87.9. Its housing cost index is 70.1, which is the second lowest in the U.S. The average price for a house in Alabama is $170,184.

If you are moving to Alabama, you would not have to worry about finding a job. The state has an unemployment rate of 2.6%. This is the 11th lowest rate in America. Unfortunately, a higher percentage of jobs in Alabama pay low wages.

The median income per household in Alabama is $52,035. This is way below the nationwide median. The poverty rate is also high, at about 15%. This means that comfortable living might be slightly difficult compared to other states.


According to U.S. News and World Report, Kentucky has the 9th lowest living cost in the U.S. You would need an average of about $36,574 per person to live comfortably in Kentucky.

If you are relocating to Kentucky, you would need an average of about $135,300 to buy a home. This is less than the national median value of a home by $69,600. If you will be renting a home, you will spend an average of about $741 every month. A typical one-bedroom house costs about $587.

Transportation, healthcare, and living costs are also affordable in Kentucky compared to most states in the U.S. It is, however, important to check the utility costs in different parts of Kentucky as they vary from one place to another.


Kansas is one of the cheapest places to live in across the United States, second after Mississippi with a living cost index of 86.5. The housing cost index is also low, at 72.6. The median cost of a home is $176,898, which is the 3rd cheapest across the country. The cost of furnishing a home is also low compared to other states.

The state has the eighth-lowest rate of unemployment in the U.S., at 2.4%. The living cost index in Kansas is lower than the national average by 14.5%. This means that you are likely going to get a well-paying job here.

Due to this, Kansas enjoys a lower rate of poverty compared to most states in the U.S. Its poverty rate is 10.6%. There are many job opportunities in Kansas. This means that you can live here comfortably.


Oklahoma has a living cost index of 87.9. The average cost of a home in Oklahoma is $151,469 while the living index is 74.7. This means that the cost of housing is among the lowest across the country.

Unfortunately, the state has one of the highest rates of poverty at 14.3%. This is because of the low wages in the state. The median income per household is $53,840. Most of the jobs do not pay well, making it difficult for people to afford the living cost in the state.

However, this is one of the cheapest states for those who use a lot of electricity. The cost of electricity is 7.63 cents/kWh.

Housing and living costs are among the most important things to consider before relocating to any state in the U.S. The states discussed above are some of the most affordable states in America.