Cheapest States to Live In 2022 – Top 5 States Where Your Dollar Will Go Further
- May 6, 2022
- 21 min read
-
195097 reads
Updated May 2022
What is the cheapest state to live in? In this article, you’ll find out. We’re listing the cheapest states to live in the U.S. and their respective average household income, wage per hour, and living costs.
Have you considered moving to a state where your dollar will stretch further?
Deciding where to live has generally been based on our social circles or employment opportunities.
Well, that’s not necessarily a bad idea. The cost of living in the most expensive state vs the cheapest state differs quite a lot, and you could actually be getting much more for your money somewhere else.
Over the last year, the average price of U.S. residential real estate has been up to $27 per square foot from February 2020 to February 2021, an increase of nearly 20%.
With a new era of online business and remote workers on the rise, Americans have the chance to choose communities based on their quality of life rather than employment prospects.
For many, the drawcard to living in the hustle and bustle of our big cities is new opportunities. But big cities are expensive, and the cost of living compared to other areas is through the roof.
Cheapest vs most expensive state
The cost of living in America varies dramatically between each state. From Mississippi being the cheapest state to live in with a median household income of $45,081 to California being the most expensive state with a median household income of $75,235.
The Cost Of Living Index
The Cost of Living index calculates the average cost of living at 100. Every state that averages less than 100 is considered below the national average for the Cost of Living.
State’s that are over 100, their cost of living is above the national average.
The average cost of living takes food, shelter, clothing, utilities, transport, healthcare, public education, and taxes into consideration.
The average cost of living calculated by MIT is $16.54 per hour or $68,808 per year for two working adults in a family of four.
The minimum wage of $7.25 per hour leaves families at the poverty threshold.
Smaller cities or towns can still offer an excellent education, healthcare, and community spirit, along with an increase in your quality of living.
Less traffic, more clean air, cheaper housing, and even fewer taxes in some states are a drawcard.
Living in a state where there is a lower living wage will allow more of your income to become available for investment. Over time this will enable you to gain more financial freedom and build financial peace.
The median household income in the U.S. was $67,521 in 2021, decreasing almost 3% from the 2019 figure of $69,560.
The 5 Cheapest States To Live In
Here is our top 5 list of cheapest states to live in the U.S. based on 2 adults working in a household of 4 people.
The monthly rent reflects the average rent for a two-bedroom apartment.
Living in any of these states will allow you to save more of every dollar that you earn.
1. Mississippi
- Cost of Living Index: 86.1
- Living wage per hour: $18.07
- Median household income: $43,567
- Average rent per month: $795
- Average childcare: $10,195
Okay, so it’s not as glamorous as other states but Mississippi is definitely one of the cheaper states to live in the U.S. and it definitely has its benefits.
The state offers over 50 colleges and universities and is known for its great sense of community. The worries of traffic and smog will fade away after a few months of living here, making Mississippi a great choice and the cheapest state to live in.
2. Arkansas
- Cost of Living Index: 86.9
- Living wage per hour: $19.35
- Median household income: $45,726
- Average rent per month: $708
- Average child care: $12,903
Arkansas has a mild climate, which can be a big drawcard to those who don’t like drastic changes in temperatures.
The mild weather makes for beautiful green scenery all year round. For the most part, it has a strong economy.
The cities are full of college students, and there is the vibrancy of big-city life if you want that.
Education opportunities are also vast. Extra study on the side and you might increase your income even more.
3. Oklahoma
- Cost of Living Index: 87
- Living wage per hour: $19.33
- Median household income: $51,424
- Average rent per month: $879
- Average child care: $13,581
Arkansas has a mild climate, which can be a big drawcard to those who don’t like drastic changes in temperatures.
4. Missouri
- Cost of Living Index: 87.1
- Living wage per hour: $19.41
- Median household income: $53,560
- Average rent per month: $728
- Average child care: $12,117
Missouri is a beautiful state located in the Midwestern region of the U.S. It has more than six million residents and is the only city in the entire U.S. that has a cave restaurant. The state of Missouri was named after a Sioux Indian tribe called the Missouris.
Missouri is a great state to live in and has something for everyone. It is rich in culture, has beautiful nature scenes, and has very affordable housing costs.
The cost of living in Missouri is lower than most states in the U.S., making it one of the most popular states to live in for 2022.
5. New Mexico
- Cost of Living Index: 87.5
- Living wage per hour: $19.62
- Median household income: $48,059
- Average rent per month: $847
- Average child care: $12,946
New Mexico is the fifth-largest state in the U.S. and still one of the cheaper states to live in. New Mexico is known for its diverse landscape and white sands, and the fact that you can see five different states from the top of the Capulin Volcano.
New Mexico is a wine country and has more PhDs per capita than any other U.S. state. It has incredible outdoor adventure spaces and a popular state for those who love the outdoors and being surrounded by beautiful nature.
Here is a list of the 10 cheaper states to live in the U.S. in 2022:
- Mississippi (86.1)
- Arkansas (86.9)
- Oklahoma (87)
- Missouri (87.1)
- New Mexico (87.5)
- Tennessee (88.7)
- Michigan (88.9)
- Kansas (89)
- Georgia (89.2)
- Wyoming (89.3)
Lowest Cost of Living Between All States
Here is a full list of the lowest cost and least expensive states to live in for 2022, based on the cost of living per state.
Rank | State | Cost of Living Index | Housing | Grocery | Utilities |
---|---|---|---|---|---|
1 | Mississippi | 86.1 | 66.6 | 93.2 | 92.3 |
2 | Arkansas | 86.9 | 75.6 | 92.5 | 91 |
3 | Oklahoma | 87 | 73 | 94.6 | 93.4 |
4 | Missouri | 87.1 | 78.3 | 95.4 | 96.3 |
5 | New Mexico | 87.5 | 84.4 | 94.6 | 89.9 |
6 | Tennessee | 88.7 | 79.4 | 93 | 91.7 |
7 | Michigan | 88.9 | 80.2 | 91 | 98.5 |
8 | Kansas | 89 | 70 | 92.6 | 100.1 |
9 | Georgia | 89.2 | 74.3 | 96.3 | 90.3 |
10 | Wyoming | 89.3 | 81.7 | 103.5 | 87.4 |
11 | Alabama | 89.3 | 69.2 | 98 | 100.7 |
12 | Indiana | 90 | 76.4 | 92.4 | 96.7 |
13 | Iowa | 90.1 | 76.5 | 98.3 | 94.1 |
14 | Ohio | 90.8 | 76.1 | 97.9 | 90.7 |
15 | Nebraska | 90.8 | 86.6 | 98.6 | 88.9 |
16 | Kentucky | 90.09 | 80.1 | 93.3 | 104.2 |
17 | West Virginia | 91.1 | 77.1 | 97.9 | 88.2 |
18 | Texas | 91.5 | 83.5 | 91.2 | 103.3 |
19 | Idaho | 92.3 | 105.5 | 92.4 | 82.8 |
20 | Louisiana | 93.9 | 86.3 | 95.6 | 86.7 |
21 | Illinois | 94.5 | 85.2 | 97.4 | 95.8 |
22 | North Carolina | 94.9 | 91.8 | 97.4 | 97.2 |
23 | South Carolina | 95.9 | 80.1 | 101.8 | 105 |
24 | Arizona | 97 | 106.2 | 101.8 | 105.2 |
25 | Wisconsin | 97.3 | 88.6 | 100.9 | 98.1 |
26 | Florida | 97.9 | 99.6 | 106.9 | 103.1 |
27 | Utah | 98.4 | 97.6 | 97.9 | 93.2 |
28 | North Dakota | 98.8 | 93.7 | 102.1 | 93.3 |
29 | South Dakota | 99.8 | 112.7 | 101.8 | 91.2 |
30 | Virginia | 100.7 | 112.1 | 96.1 | 96.5 |
31 | Minnesota | 101.6 | 90.4 | 105 | 96.2 |
32 | Pennsylvania | 101.7 | 100.6 | 109.3 | 109.5 |
33 | Colorado | 105.6 | 116.7 | 99.9 | 87.9 |
34 | Montana | 106.9 | 105.9 | 103.1 | 88.1 |
35 | Delaware | 108.1 | 93.3 | 109.5 | 104.3 |
36 | Nevada | 108.5 | 118.5 | 110.8 | 87 |
37 | New Hampshire | 109.7 | 110.3 | 99.7 | 115.2 |
38 | Washington | 110.7 | 116.7 | 109.2 | 91.1 |
39 | Vermont | 114.5 | 136.7 | 109.5 | 120.6 |
40 | Maine | 117.5 | 142 | 100.4 | 107.2 |
41 | Rhode Island | 119.4 | 124.2 | 108.7 | 125.8 |
42 | New Jersey | 125.1 | 137 | 108.7 | 104.6 |
43 | Connecticut | 127.7 | 137.7 | 101.8 | 132.3 |
44 | Maryland | 129.7 | 171.3 | 108.7 | 104 |
45 | Alaska | 129.9 | 126.6 | 132.7 | 157 |
46 | Massachusetts | 131.6 | 179.2 | 117 | 110.8 |
47 | Oregon | 134.2 | 178.1 | 109 | 90.1 |
48 | New York | 139.1 | 230.2 | 118.3 | 99.2 |
49 | California | 151.7 | 192.7 | 110.3 | 128.5 |
50 | Hawaii | 192.9 | 313.1 | 157.9 | 169.2 |
Living Wage by State 2022
Below is a list of states according to the living wage needed by a household to support themselves, based on a family of four with 2 adults working full-time.
Rank | State | Living Wage |
---|---|---|
1 | Kentucky | $43,000 |
2 | West Virginia | $45,000 |
3 | South Dakota | $45,000 |
4 | Arkansas | $45,000 |
5 | Ohio | $46,000 |
6 | Missouri | $46,000 |
7 | Mississippi | $46,000 |
8 | Idaho | $46,000 |
9 | Alabama | $46,000 |
10 | Tennessee | $47,000 |
11 | South Carolina | $47,000 |
12 | Oklahoma | $47,000 |
13 | North Dakota | $47,000 |
14 | Montana | $47,000 |
15 | Indiana | $47,000 |
16 | Wyoming | $48,000 |
17 | Utah | $48,000 |
18 | Texas | $48,000 |
19 | New Mexico | $48,000 |
20 | Nebraska | $48,000 |
21 | Louisiana | $48,000 |
22 | Kansas | $48,000 |
23 | Georgia | $48,000 |
24 | Michigan | $49,000 |
25 | Iowa | $49,000 |
26 | Pennsylvania | $50,000 |
27 | North Carolina | $50,000 |
28 | Wisconsin | $51,000 |
29 | Washington | $51,000 |
30 | Maine | $51,000 |
31 | Arizona | $51,000 |
32 | Vermont | $52,000 |
33 | Oregon | $52,000 |
34 | Minnesota | $52,000 |
35 | Illinois | $52,000 |
36 | Florida | $52,000 |
37 | Rhode Island | $53,000 |
38 | Nevada | $53,000 |
39 | Delaware | $53,000 |
40 | Virginia | $54,000 |
41 | Colorado | $54,000 |
42 | Alaska | $54,000 |
43 | New Hampshire | $55,000 |
44 | New Jersey | $56,000 |
45 | California | $57,000 |
46 | Maryland | $58,000 |
47 | New York | $59,000 |
48 | Massachusetts | $60,000 |
49 | Connecticut | $60,000 |
50 | Hawaii | $61,000 |
Does your dollar stretch further where you live compared to the rest of the country? Comment below.
Sources
- NUMBEOaccessed on May 6, 2022
- Living Wageaccessed on May 6, 2022
- Only In Your Stateaccessed on May 6, 2022
- Liveabilityaccessed on May 6, 2022
- Liveabilityaccessed on May 6, 2022
- National Park Serviceaccessed on May 6, 2022
- SDHDAaccessed on May 6, 2022
Related posts
Credit Cards
A Complete Guide to Credit Card Travel Insurance (2022)
When people think of credit card benefits, they usually think about things like cash back, travel rewards or airline miles. However, most credit cards also …
May 24, 2022 7 min read
Credit Cards
6 Benefits and Drawbacks of Prepaid Business Credit Cards
For many entrepreneurs, credit cards are the mode of payment for business expenses. However, there is yet another type of card you can use for …
May 19, 2022 5 min read
Personal Finance
How Often Does Your Credit Score Update?
If you are making regular payments on your accounts to improve your credit, you may wonder when this may end up showing on your credit …
May 13, 2022 6 min read
Explore our topics
Sign in
Or sign in with email
The username or password is incorrect.
Authentication Code:
Rate
Thank you for choosing
Share your experience and help others to choose the right company.
Rate now
We use cookies to give you the most relevant experience. By using our site, you accept all cookies and our privacy policy. To find out more about what cookies we use you can go to privacy overview
This website uses cookies among other user tracking and analytics tools. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Cookies may also be used for other marketing and advertising purposes, or for other important business analytics and operations.
To use our website you need to agree to our Terms and Conditions and Privacy Policy. To find more about the legal terms that govern your use of our website, please read our Terms and Conditions here.To find more about your privacy when using our website, and to see a more detailed list for the purpose of our cookies, how we use them and how you may disable them, please read our Privacy Policy here.
We use cookies to keep your user preferences and actions, in order to assist and optimize your overall experience of using our Site. These are known as essential cookies.
Those cookies include actions such as creating or using your account in our site, writing reviews, interacting with existing reviews by giving likes or replies, writing other user content on the site, setting up custom search or filter preferences, accepting and saving user preferences (including privacy preferences), or any other action which affects the way you experience the Site. Those cookies are important to give you the best possible user experience, and thus can be removed only manually by following the instructions found on our privacy policy.
We also use non-essential cookies, also mentioned as “additional cookies”, that help us to improve our online marketing and advertising efforts, and to further optimize your user experience on our Site. Those cookies allow us to track your user actions and associate them with anonymous user data, with the assistance of 3rd parties and services such as Google Ads, Google Analytics, DoubleClick, Bing Ads, Gleam, Typeform, RedTrack, Google Tag Manager, Yahoo, Facebook, YouTube etc.
To see a detailed list about the use of your data please refer to our Privacy Policy, section II. How We Use Your Information
To find more about your privacy when using our website, and to see a more detailed list for the purpose of our cookies, how we use them and how you may disable them please read our Privacy Policy