Cheapest states to live in the USA 2025

Introduction

With the rising cost of living across America, many people are rethinking where they live. Whether you’re a remote worker, a student, or a retiree, finding a low-cost state can help you stretch your income and improve your lifestyle.

In this updated 2025 guide, we reveal the 10 cheapest states to live in the USA, based on housing affordability, taxes, healthcare, and utilities. These states offer a high quality of life without draining your bank account.

How We Ranked the States

We analyzed multiple cost-of-living metrics, including:

Average housing and rent prices
Grocery, utility, and fuel costs
State taxes (income, sales, property)
Healthcare and insurance rates
Transportation affordability

All data is based on the Missouri Economic Research and Information Center (MERIC) and verified 2025 cost-of-living indexes.

Top 10 Cheapest States to Live in the USA (2025 Edition)

Oklahoma

Why It’s Affordable:
Oklahoma ranks as one of the most budget-friendly states in America. Housing prices are significantly below the national average, and both groceries and utilities are affordable.

Average Home Price (2025): $180,000
Cost of Living Index: 85

Low property taxes and affordable rents make it ideal for families and retirees.

Mississippi

Why It’s Affordable:
Mississippi continues to hold the title as America’s cheapest state. From housing to groceries, every essential category remains low-cost.

Average Home Price: $170,000
Cost of Living Index: 83

Perfect for peaceful living and remote work.

Alabama

Why It’s Affordable:
Alabama combines low property taxes, inexpensive housing, and manageable utility bills.

Average Home Price: $190,000
Cost of Living Index: 86

Enjoy affordable living with access to Gulf Coast beaches.

Missouri

Why It’s Affordable:
Missouri offers urban comfort at rural prices. Groceries, healthcare, and utilities are well below the U.S. average.

Average Home Price: $210,000
Cost of Living Index: 87

Balanced lifestyle with access to major cities like Kansas City and St. Louis.

West Virginia

Why It’s Affordable:
West Virginia is known for low-cost housing and scenic surroundings.

Average Home Price: $175,000
Cost of Living Index: 84

Ideal for retirees or remote professionals seeking peace and affordability.

Iowa

Why It’s Affordable:
Iowa provides affordable living, quality education, and safe communities.

Average Home Price: $215,000
Cost of Living Index: 89

Family-friendly and perfect for steady, long-term living.

Kansas

Why It’s Affordable:
Kansas has consistently low grocery, housing, and transportation costs.

Average Home Price: $200,000
Cost of Living Index: 88

Great for small-town living with strong community values.

Michigan

Why It’s Affordable:
Outside major cities, Michigan remains a highly affordable state with scenic landscapes and moderate taxes.

Average Home Price: $220,000
Cost of Living Index: 89

Perfect for nature lovers and remote workers.

Tennessee

Why It’s Affordable:
Tennessee stands out with no state income tax and low-cost housing.

Average Home Price: $230,000
Cost of Living Index: 90

Mild climate, great music scene, and tax benefits.

Arkansas

Why It’s Affordable:
Arkansas remains one of the most affordable Southern states, with cheap groceries, housing, and utilities.

Average Home Price: $185,000
Cost of Living Index: 84

Affordable living in small cities like Little Rock and Fayetteville.

Common Features of These States

Low housing costs
Lower taxes
Budget-friendly groceries & utilities
Peaceful, community-driven living

Before You Move

Income levels vary across regions.
Healthcare and education access can differ.
Be mindful of local weather and job markets.

Final Thoughts

The 10 cheapest states to live in the USA (2025) prove that you can enjoy comfort and opportunity without breaking your budget. From Oklahoma’s charm to Arkansas’s simplicity, these states are perfect for families, students, retirees, and digital nomads seeking affordable living.

By choosing the right state, you can live better, save more, and plan your future with financial freedom.

FAQs – Cheapest States to Live in the USA 2025

Q1: What is the cheapest state to live in 2025?
Mississippi remains the most affordable state in the U.S. based on the 2025 cost-of-living index.

Q2: Which state has the lowest housing prices?
West Virginia and Oklahoma offer the cheapest home prices nationwide.

Q3: Which affordable states are best for remote work?
Tennessee, Iowa, and Alabama are top-rated for internet access, affordability, and peaceful work environments.

Q4: Which state has no income tax?
Tennessee is one of the few affordable states with no state income tax.

Q5: Are these states safe and family-friendly?
Yes, most of them offer a strong community culture and lower crime rates than national averages.