Safeload Coverage
TL; DR: The cost of living varies by state and depends on several basic expenses. The cost of living increased in 2024, but it wasn’t as high in 2022. Arkansas has the lowest cost of living.
With inflation continuing to be stubbornly high in 2024, everyone is acutely aware of the cost of living since they’re closely related metrics. More likely than not, the cost of living has probably increased where you reside. What does “cost of living” mean? Which state has the lowest cost of living? You’ll learn this and much more from our Moving Help® article.
If you plan on moving to a state with a lower or higher cost of living, consider using labor-only Service Providers from the Moving Help Marketplace. They’re affordable, reliable, and you don’t have to stress about lifting heavy items on your own or relying on friends or family.
What Is Cost of Living?
“The cost of living is the amount of money needed to cover basic expenses such as housing food, taxes, and health care in a certain place and time period,” according to investopedia.com.
The cost of living is what people use to compare cities with one another.
The cost of living also relates to wages. The higher the expenses are in a city, the higher the salary levels are in that area, so people can afford to live there.
For example, Seattle, Washington, has a higher cost of living vs. Phoenix, Arizona. Therefore, salary levels are higher in Seattle than in Phoenix.
These main components help shape the cost of living:
- Housing
- Food
- Health care
- Transportation
It’s these metrics that are important to keep in mind when considering the cost of living in a city. You also might want to consider schools as well in case you have children or plan to go to college.
Cost of Living 2024
The cost of living in 2024 has continued to increase. The Consumer Price Index showed prices increased 3.2 percent between February 2023 and February 2024, according to the Bureau of Labor Statistics. This was a huge drop though from the 9.1 percent peak in June 2022.
While inflation is slowing down, other prices and key household essentials are still seeing elevated prices for consumers, which ultimately hurts a person’s wallet.
Where you live in 2024 and beyond also can increase or decrease your cost of living. You’ll find different costs of living in the Northeast, Midwest, South, and West.
Cost of Living in the United States
The cost of living in each state is different. U.S. News created a report based off the cost of living. They created a list all 50 U.S. States to determine the affordability of living in each state when considering the cost of living.
Of course, cost of living is one metric that would factor into the U.S. News’ overall best state rankings.
The Top 5 states with the lowest cost of living are:
- Arkansas
- Mississippi
- Alabama
- South Dakota
- Iowa
The Top 5 states with the highest cost of living are:
- California
- Hawaii
- Washington
- Massachusetts
- New Jersey
Here’s the full list for the cost of living in each state in terms of affordability:
| Cost of Living Ranking — State Name |
|---|
| 1. Arkansas |
| 2. Mississippi |
| 3. Alabama |
| 4. South Dakota |
| 5. Iowa |
| 6. North Dakota |
| 7. Oklahoma |
| 8. West Virginia |
| 9. Kentucky |
| 10. Nebraska |
| 11. Kansas |
| 12. Montana |
| 13. Louisiana |
| 14. New Mexico |
| 15. Missouri |
| 16. Ohio |
| 17. Tennessee |
| 18. Indiana |
| 19. Idaho |
| 20. Wyoming |
| 21. Wisconsin |
| 22. Michigan |
| 23. South Carolina |
| 24. North Carolina |
| 25. Utah |
| 26. Georgia |
| 27. Pennsylvania |
| 28. Nevada |
| 29. Texas |
| 30. Minnesota |
| 31. Delaware |
| 32. Arizona |
| 33. Maine |
| 34. Vermont |
| 35. Illinois |
| 36. Alaska |
| 37. Virginia |
| 38. Florida |
| 39. Colorado |
| 40. Rhode Island |
| 41. Maryland |
| 42. Connecticut |
| 43. Oregon |
| 44. New York |
| 45. New Hampshire |
| 46. New Jersey |
| 47. Massachusetts |
| 48. Washington |
| 49. Hawaii |
| 50. California |
While this list is helpful for determining the affordability of the cost of living in each state, it’s only one factor to consider. You also should keep in mind other factors to help determine where you might want to live.
What State Has the Lowest Cost of Living?
Arkansas has the No. 1 cost of living, according to U.S. News.
Average prices for the following categories:
- Housing
- Utilities
- Groceries
- Transportation
- Health care
tend to be lower in Arkansas then most U.S. states. Housing prices and rent are specifically lower on average compared to other states.
Arkansas is home to the headquarters of Walmart. Other major employers in Arkansas are Tyson Foods, Dillard’s, Simmons Food, Arkansas Children’s Hospital, and Baptist Health.
Consider Cost of Living When Moving in 2024
Whether you plan to move in the next two weeks, or the next 12 years, the cost of living is an important factor to consider. The cost of living in each state is different and can be different from year to year.
The cost of living in 2024 has increased, but it wasn’t as high as 2022. Each person will need to look at their finances and figure out whether they can live somewhere with a higher or lower cost of living.
To assist you with your relocation and moving labor needs, consider hiring Service Providers from Moving Help. The Moving Help Marketplace can help you with your loading, unloading, packing, gun safe moving, and other moving needs.
