Living costs can vary a lot across the United States. While some places are known for sky-high prices, others offer affordable housing, cheaper groceries, and lower taxes. For people who want to save money or stretch their income further, moving to one of the states with the lowest cost of living can make a big difference. Here are the 10 most affordable states to live in for 2025.
1. Mississippi
Mississippi remains the most affordable state in the U.S. Low housing costs and below-average expenses for food, utilities, and healthcare make it budget-friendly. It’s ideal for people looking to live comfortably on a modest income.
2. Arkansas
Arkansas offers a low cost of living combined with a slower pace of life. Rent and home prices are very affordable, and basic expenses like groceries and transportation are also lower than the national average.
3. West Virginia
West Virginia features some of the lowest housing costs in the country. While the economy is slower, the overall cost of daily living — from gas to groceries — is very affordable for families and retirees.
4. Alabama
Alabama has a warm climate, low taxes, and very affordable real estate. Whether you’re renting or buying, your money goes further here compared to most other states.
5. Kentucky
Kentucky combines natural beauty with a low cost of living. Groceries, housing, and healthcare are all reasonably priced, making it one of the best states for budget-conscious families.
6. Oklahoma
Oklahoma’s housing market is one of the most affordable in the country. In addition, utilities and transportation costs remain low, helping residents keep monthly expenses down.
7. Indiana
Indiana offers a strong job market and low living costs. Home prices and rental rates are below the national average, and the overall tax burden is relatively light.
8. Missouri
Missouri features affordable housing, low utility bills, and inexpensive groceries. The cost of living in cities like St. Louis and Kansas City is significantly lower than other major metro areas.
9. Iowa
Iowa is known for its affordable homes and low unemployment rate. Basic living costs like healthcare and transportation are below the national average, making it a smart choice for middle-class families.
10. Tennessee
Tennessee combines low taxes — including no state income tax — with affordable housing and utilities. It’s a popular option for retirees and remote workers looking to lower their expenses.
Final Thoughts on States With the Lowest Cost of Living
These states with the lowest cost of living in 2025 offer residents a chance to save more and spend less. Whether you’re planning to retire, relocate, or just cut back on monthly expenses, moving to one of these affordable states could be a smart move for your wallet.
