The post-pandemic inflation peak of 9% in 2022 has significantly reduced and even went negative on a monthly basis for the first time since May 2020.
However, the prices are still higher than what the Federal Reserve policymakers consider suitable for a stable economy. This situation is further exacerbated by a burgeoning insurance crisis that affects not only homeowners but also renters as landlords transfer the cost to them.
According to CNBC, the cost of living varies considerably from one state to another, making some places more affordable than others. Companies are aware that a low cost of living can attract workers, which is why many factor this into their location decisions. CNBC also considers the cost of living in its annual state competitiveness ranking, America's Top States for Business.
In the 2024 methodology, states are rated based on an index of prices for a broad range of goods and services calculated by the Council for Community and Economic Research, C2ER. Housing affordability is also considered. Due to the insurance crisis, the cost of insurance on a median priced home in every state is also considered, based on the most recent available data.
In some states, the results are downright ugly. However, in these ten states, life is relatively affordable. Here are America's cheapest places to live in 2024, along with some selected prices in the most expensive metros in each state.
In Wisconsin, even in the most expensive metro area Madison life can be a relative bargain. For instance, a six-pack of Heineken beer will cost you 30% less in Madison than it will in Seattle. But the real bargain in The Badger State is homeowners insurance. At $750 a year to insure a median priced home, it is the lowest premium in the nation.
In Manhattan, Kansas, you can find a two-bedroom apartment for under $1,000 a month. In contrast, a comparable place in Manhattan, New York, would go for $5,215. However, while in the Big Apple, even with the savings from your rent, you might experience sticker shock if you go see a movie. It will cost about 10% more than you pay at home.
In Kansas City, Missouri, a McDonald's Quarter Pounder with Cheese is 36% cheaper than it would be if you ordered it in Boston. The Coke to wash it down will cost you about 5% less. However, at $1,257 to insure a median priced home, premiums are rising in The Show Me State for the same reasons as they are in neighboring Kansas.
In Pennsylvania, overall living costs are roughly in line with the national average. But the real bargain for Pennsylvanians is in homeowners' insurance. The annual premium for a median priced home is just $807. That's the third lowest in the nation, or only half of what they are paying in Nebraska.
In Indiana, housing prices in most of The Hoosier State buck the national affordability trend. Prices in much of the state are tracking in the mid-$200,000s. Like in Muncie, where you can get a brand new, four-bedroom house for $256,000, or one-sixth of what it would cost in San Jose, California.
In Illinois, even factoring in pricey Chicagoland, the median home price is just $301,900. Illinois is also holding the line on insurance premiums, with the cost to insure a median priced home staying under $1,000.
In Ohio, housing is a bargain, and that includes apartment rentals. A two-bedroom in Findlay will set you back around $921, or about a quarter of what it would cost in Honolulu. Ohioans also enjoy the fourth-lowest homeowners insurance premiums in the nation.
In Michigan, time for your yearly eye exam in Kalamazoo? Expect to pay just $74.50, or less than half the cost in Portland, Maine. The Wolverine State also offers some of the most affordable housing in the country.
In Iowa, prices for other basic goods are affordable, too. You'll pay $1.56 for a bag of frozen corn, or about 30% less than you'd pay in Chicago.
In West Virginia, a loaf of bread is 36% of what it would cost in Fort Lauderdale, Florida, and a four-bedroom house in Charleston costs about a quarter of the price of a similar home in Seattle. The West Virginia Economic Development Department prominently features the low living costs in its pitch to businesses. The low cost of living means that companies can pay a lower wage than they might have to in a more expensive state. West Virginia's average hourly wage of $25.10 in 2023 was the third lowest in the nation, according to the U.S. Bureau of Labor Statistics. But at least your money will go a whole lot further in America's cheapest state to live in.
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