Prices for goods and services in the United States have increased 2.4% in the past year, putting Americans in search of ways to save money. Learn which 10 states are the most affordable to live in based on their cost-of-living scores. Plus, find out how much prices vary in different regions of the U.S. To get started, here’s some information about the cost of living.
What is “Cost of Living”?
Cost of living is the total amount of money needed to cover basic necessities. This includes housing, food, healthcare, taxes, and transportation. However, the costs for goods and services can vary significantly across areas based on circumstances such as proximity to resources. That’s why each state is rated based on an index of prices and then assigned a score.
Scores comprise factors such as the price of a specific product, average home price, and how much a monthly energy bill runs. Plus, new this year due to the significant rise of home insurance rates in certain areas, is the annual cost of home insurance. According to the latest data from all these results, here are the top 10 most affordable states to live ranked in order.
10 Most Affordable States to Live and Cost of Living Score (out of 50 points possible):
- West Virginia: 46
- Iowa: 45
- Michigan: 44
- Ohio: 42
- Illinois: 40
- Indiana: 40
- Pennsylvania: 39
- Missouri: 38
- Kansas: 36
- Wisconsin: 35
Key Stats
To put this in perspective, here are some statistics on expenses depending on where you live:
- In West Virginia, the least expensive state to live, the West Virginia Economic Development Department claims the “cost of living is 12% lower than the national average.”
- A two-bedroom apartment rental in Findlay, Ohio charges $921 per month. This is about a quarter of what it costs in Honolulu, Hawaii.
- You can buy a brand new four-bedroom home in Muncie, Indiana for $256,000. That’s one-sixth of how much the same home would cost in San Jose, California.
- While Kansas ranks ninth on the list, homes in that state are getting more expensive to insure due to a higher risk of disasters such as tornadoes and wildfires.
- Wisconsin, though it places number 10, has the lowest insurance premium in the nation at around $750 annually.
Whichever state you call home, it’s important to have adequate home insurance coverage. Speak with a Westwood agent today to review your home policy and ensure you have the protection you need.
Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.
