1. Introduction to Affordable Living in 2025
As the cost of living continues to rise in many parts of the United States, individuals are increasingly seeking affordable states to live in 2025. With rising inflation and soaring housing costs, finding a location that balances quality of life with affordability has become a top priority. Many people are relocating to states where housing, utilities, and healthcare fit within a middle-class budget. If you’re considering a move, My Good Movers provides an effective movers directory to help you compare and choose professional movers, making your transition to a more affordable state easier and stress-free.
But what are the cheapest states to live in 2025? In this article, we will explore the best states that offer a lower cost of living without sacrificing amenities and lifestyle.
2. Why Living Costs Matter
Living costs can significantly affect your quality of life, savings, and overall financial health. High costs in areas like housing, food, transportation, and healthcare can quickly eat into your budget, leaving you with little room for savings or leisure activities.
In addition, states with a lower cost of living tend to have better affordability when it comes to everyday expenses like groceries, utilities, and even childcare. When considering where to move or retire, it’s important to factor in the overall affordability of a state to help make more sustainable and financially sound decisions.
3. Factors Influencing the Cost of Living
To determine which states are the most affordable, it’s essential to consider several factors that contribute to living costs. Here are some of the key aspects to look out for when evaluating a state’s affordability:
Housing Costs
Housing is typically the largest expenditure for most individuals and families. The cost of renting or buying a home can vary greatly depending on location, availability, and demand. States with affordable housing options provide a more balanced lifestyle, allowing residents to save money or invest in other aspects of life.
Transportation and Utilities
Transportation costs can vary, especially in states with vast geographical expanses. Public transportation availability and the cost of fuel play a key role in the overall cost of living. Additionally, utility costs for electricity, water, and gas can differ across regions, making some states more affordable in this aspect.
Healthcare and Education
Healthcare can be a significant expense for families, especially in states where insurance premiums are high. Access to affordable healthcare options can impact the overall cost of living in a state. Similarly, education costs—whether for public schooling or higher education—also play a part in determining how affordable a state is for families.
4. Top 10 Cheapest States to Live in 2025
Below is a detailed breakdown of the ten most affordable states to live in 2025:
1. Arkansas
Arkansas continues to be one of the most affordable states in the U.S., especially for those looking to buy property. The average cost of housing in Arkansas is much lower than in states like California or New York. The state also offers low healthcare costs and affordable groceries. Living in Arkansas means access to beautiful outdoor spaces and a relaxed, slower-paced lifestyle.
2. Mississippi
Mississippi is another highly affordable state, particularly in terms of housing. With some of the lowest property taxes and rent prices in the country, residents can enjoy a more comfortable lifestyle without breaking the bank. The cost of living here is around 15% below the national average, making it an attractive option for retirees and families alike.
3. Oklahoma
Oklahoma offers a low cost of living, especially when it comes to real estate and transportation. Housing prices are quite reasonable, and grocery bills tend to be cheaper compared to other states. Oklahoma also benefits from low healthcare costs, making it an ideal location for anyone looking to live frugally while still enjoying a good quality of life.
4. New Mexico
New Mexico is known for its affordable housing, lower-than-average healthcare costs, and general affordability. The state offers a blend of scenic desert landscapes, a rich cultural history, and an affordable lifestyle. New Mexico also boasts low property taxes and cost-effective utilities.
5. Missouri
With affordable housing and a lower-than-average cost of living, Missouri is another excellent state to consider if you’re looking to save money. The state’s cost of living is approximately 13% below the national average. Residents benefit from affordable groceries, utilities, and transportation costs, while still enjoying the perks of urban living in cities like St. Louis or Kansas City.
6. Tennessee
Tennessee has consistently ranked as one of the most affordable states in the U.S., particularly due to the absence of a state income tax. This means that your income is not taxed by the state, allowing for more take-home pay. Additionally, housing and utility costs are quite affordable in Tennessee, making it a great option for budget-conscious individuals.
7. Michigan
Michigan offers an affordable cost of living, with housing costs being well below the national average. The state is also home to many large cities with relatively low rent prices, making it attractive for those looking to live in urban areas without paying high rent. Michigan also provides access to high-quality healthcare at reasonable rates.
8. Texas
Texas is another state with no state income tax, which can help residents keep more of their earnings. The cost of living in Texas varies depending on the city, but overall, it remains affordable compared to other regions. With affordable housing, utilities, and groceries, Texas offers a high quality of life without draining your budget.
9. Kansas
Kansas is often overlooked when considering affordable places to live, but it consistently ranks as one of the least expensive states. Housing costs are incredibly low, and residents can enjoy a good quality of life without paying high prices for everyday essentials. Kansas also offers a variety of job opportunities, especially in tech, agriculture, and healthcare industries.
10. Indiana
Indiana is another state with low housing and utility costs. It boasts a cost of living that is approximately 10% lower than the national average. In addition to affordable housing, the state offers excellent schools, healthcare, and public transportation, making it an ideal option for families.
5. How to Find Affordable Housing in These States
Finding affordable housing in the most affordable states can be challenging if you don’t know where to look. Start by exploring online housing platforms such as Zillow or Realtor.com to find rental properties or homes for sale. You can also check out local listings or visit small towns where housing may be even more affordable.
It’s essential to do research on the local real estate market and property taxes to ensure that you’re making the best financial decision for your future.
6. Tips for Budget-Friendly Living in 2025
To help you save even more, here are a few practical tips to live more affordably in 2025:
- Downsize your living space: Consider moving to a smaller home or apartment to reduce housing costs.
- Embrace public transportation: Save money on gas and parking by using public transportation or carpooling.
- Shop smart: Look for discounts, use coupons, and buy in bulk to cut grocery costs.
- Negotiate bills: Call your utility companies or insurance providers to ask for better rates or discounts.
7. Writer’s Review
In reviewing the cheapest states to live in 2025, we’ve covered the top contenders offering affordable housing, lower transportation costs, and other budget-friendly factors. Additionally, if you are planning to move you can also Compare Top State to State Movers to find the best movers services. These states stand out for their affordability and overall quality of life, providing opportunities for those seeking to live more economically. If you are planning a move or looking for a more budget-friendly location, these states are well worth considering.
8. Frequently Asked Questions
Q: What are the most affordable cities in the cheapest states to live in?
A: Cities like Little Rock, Arkansas, Jackson, Mississippi, and Oklahoma City are among the most affordable in their respective states.
Q: Is it possible to live comfortably in Texas on a lower income?
A: Yes, Texas offers affordable housing and low living costs, making it possible for individuals on a lower income to live comfortably, especially outside the major cities.
Q: Which state has the lowest overall cost of living in 2025?
A: Arkansas and Mississippi are often ranked as the lowest-cost states, with affordable housing, utilities, and healthcare.
Q: Can I find affordable healthcare in these states?
A: Yes, many of the states listed have affordable healthcare options, but it’s always a good idea to research specific health insurance plans and providers before making a move.
