The Cheapest States To Live in the U.S 2023

Cost of living means exactly what it sounds like—the amount it costs to live somewhere. It takes all sorts of expenses into account, like housing, groceries, utilities, transportation, health care, and services.

It can be a major factor when deciding where to live. In this case, it is necessary to know which are the most affordable states or which are the places with the cheapest houses in the country. Knowing the cost of living can help you make informed decisions that suit your lifestyle and financial situation. Whether you’re moving for a job change or simply looking for a more budget-friendly place to live, understanding the cost of living is essential.

To find the cheapest states to live in, Scholaroo data team analyzed the 50 states through 9 key categories- Living Expenses, Personal Expenses, Loans & Credit Card, Education, Health, Taxes & Income, Digital, Insurance, and Travel- across 31 metrics ranging from Grocery Cost, Rent Cost, and Mortgage Cost.

With all this data, hopefully you can get a better picture of which are the cheapest states to live in the U.S. Let’s dive in!

Methodology

Our data study will use a mathematical model to create a final ranking out of 31 unique factors. These factors will be grouped into 9 main categories each of which will have 3+ topics.

1. Living Expenses

2. Personal Expenses

3. Taxes & Income

4. Health Cost

5. Education Cost

6. Loans & Credit Card Bill

7. Insurance Cost

8. Telecommunications Cost

9. Travel Cost

Living Expenses (12 points)

Median Home Value: Regular Weight (2 points)

Note: This metric shows the average income that a person has in one year.

Electricity Cost: Regular Weight (2 points)

Note: Average electric bill cost.

Gas Cost: Regular Weight (2 points)

Note: Average gas bill cost.

Alarm & Security Cost: Regular Weight (2 points)

Note: Average alarm & security bill cost.

Rent Cost: Regular Weight (2 points)

Note: This shows the average cost of renting an apartment.

Grocery Cost: Regular Weight (2 points)

Note: This metric represents the grocery cost index in Q3 2021.

Personal Expenses (11 points)

Gym Cost: Regular Weight (2.75 points)

Note: Average monthly cost of a gym membership.

Average Beer Cost: Regular Weight (2.75 points)

Note: Average price of a 24-pack of beer.

Haircut Cost: Regular Weight (2.75 points)

Note: Average haircut cost.

Manicure Cost: Regular Weight (2.75 points)

Note: Average manicure cost.

Taxes & Income (11 points)

Income Taxes: Regular Weight (3.67 points)

Note: This metric represents the rate of income taxes payable by a single filer.

Sales Taxes: Regular Weight (3.67 points)

Note: The percentage of taxes that people pay in sales.

Median Annual Income: Regular Weight (3.67 points)

Note: This metric shows the average income that a person has in one year.

Health Cost (11 points)

Health Insurance Cost: Regular Weight (2.75 points)

Note: Average monthly cost of health insurance.

Dental Care Cost: Regular Weight (2.75 points)

Note: Average dental care bill cost.

Eye Care Cost: Regular Weight (2.75 points)

Note: Average eye care bill cost.

Average Pharmacy Bill: Regular Weight (2.75 points)

Note: Average pharmacy bill cost.

Education Cost (11 points)

Average Private School Tuition Cost: Regular Weight (5.50 points)

Note: The average tuition price for elementary, middle, and high private schools per year.

Student Loan Debt: Regular Weight (5.50 points)

Note: The average student loan debt.

Loans & Credit Card Bill (11 points)

Mortgage Cost: Regular Weight (3.67 points)

Note: Average mortgage bill cost.

Auto Loan Cost: Regular Weight (3.67 points)

Note: Average auto loan bill cost.

Average Credit Card Bill: Regular Weight (3.67 points)

Note: Average credit card bill cost.

Insurance Cost (11 points)

Life Insurance Cost: Regular Weight (2.75 points)

Note: Average life insurance bill cost.

Car Insurance Cost: Regular Weight (2.75 points)

Note: This metric measures the average rate of car insurance premium in 2022.

Rental Insurance Cost: Regular Weight (2.75 points)

Note: This metric represents the average rate of rent insurance in 2022.

House Insurance Cost: Regular Weight (2.75 points)

Note: This metric represents the average rate of home insurance in 2022.

Telecommunications Cost (11 points)

Cellphone Cost: Regular Weight (3.67 points)

Note: Average cellphone bill cost.

Cable & Internet Cost: Regular Weight (3.67 points)

Note: Average cable & internet bill cost.

Cable & Satellite Cost: Regular Weight (3.67 points)

Note: Average cable & satellite bill cost.

Travel Cost (11 points)

Accommodation Cost: Regular Weight (5.50 points)

Note: Average accommodation cost for 3 nights for one person.

Transportation Cost: Regular Weight (5.50 points)

Note: This metric represents the transportation cost index in Q3 2021.