The cheapest states to live in for families

With the cost of living rising nationwide, many families are searching for more affordable places to call home. Whether you're looking to lower your mortgage, cut utility costs, or simply enjoy a better quality of life for less, this guide has you covered.

How to measure the cheapest states to live in

There’s no single “correct” way to define the cheapest states. Different sources use different data sets and methodologies to measure affordability. To give you the clearest picture, we’re using two indexes:

• Cost of Living Index from World Population Review, which looks at everyday expenses like housing, groceries, transportation, and utilities.

• Regional Price Parities (RPP) from the U.S. Bureau of Economic Analysis (BEA), which compares price level differences between states relative to the national average.

Keep in mind that this data refers to statewide averages. Costs and opportunities can vary significantly between major cities and rural areas within the same state. For example, living in downtown Kansas City looks very different from living in a small town in western Kansas, both in price and job prospects.

Top states by cost of living index (World Population Review)

Top states by Regional Price Parities (BEA)

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Let’s break down why these states are some of the cheapest states to live in.

Oklahoma

WPR Rank: 2 (85.7) BEA Rank: 4 (88.3) Oklahoma stands out for its affordable housing and low transportation and utility costs. Oklahoma City and Tulsa are economic hubs with strong job markets in aerospace, energy, and healthcare. The combination of low living expenses and access to excellent public schools, outdoor activities, and cultural events makes it a family-friendly state with significant value.

Mississippi

WPR Rank: 4 (87.9) BEA Rank: 2 (87.3) Mississippi continues to rank near the top in both lists thanks to low costs in housing, groceries, and transportation. Cities like Jackson and Gulfport are seeing job growth, especially in manufacturing and healthcare. Families can enjoy the state’s warm climate, historic towns, and a slower-paced lifestyle that fits a family-friendly budget.

Arkansas

WPR Rank: 6 (88.7) BEA Rank: 1 (86.5) Arkansas leads the BEA’s list for affordability and lands #6 in WPR’s index. With extremely low property taxes and affordable groceries and utilities, it’s a top choice for families. Cities like Little Rock and Fayetteville are job hubs, offering opportunities in retail, healthcare, and logistics. The state also boasts beautiful outdoor spaces, with lakes, mountains, and national parks perfect for weekend family adventures.

West Virginia

WPR Rank: 1 (84.1) BEA Rank: 8 (89.8) West Virginia ranks first in WPR and holds a strong #8 position in BEA’s index. Known for its beautiful landscapes and small-town charm, it offers some of the cheapest housing in the nation. While the job market is smaller, it’s growing in healthcare and education, especially in cities like Charleston and Morgantown. Families enjoy low property taxes, community-centered living, and easy access to outdoor activities.

Kansas

WPR Rank: 3 (87.0) BEA Rank: 9 (90.0) Kansas balances affordability with a strong job market in sectors like aerospace, agriculture, and healthcare. Wichita and Topeka offer vibrant communities and highly rated schools coupled with low utility costs and short commutes. It’s a mix of rural peace and city conveniences that works well for families.

Alabama

WPR Rank: 5 (88.0) BEA Rank: 9 (90.0) Alabama holds steady in both rankings due to its affordable housing and some of the nation’s lowest property taxes. Birmingham and Huntsville lead in job growth for healthcare, aerospace, and tech. The state offers plenty of family attractions, from Gulf Coast beaches to mountain trails.

Iowa

WPR Rank: 8 (89.7) BEA Rank: 7 (88.8) Iowa ranks solidly on both lists thanks to affordable housing, safe neighborhoods, and top-rated schools. Des Moines and Cedar Rapids are job centers in finance, insurance, and tech. The state’s focus on education, combined with a low crime rate and a strong sense of community, makes it particularly appealing to families.

South Dakota

WPR Rank: — BEA Rank: 3 (88.1) South Dakota ranks highly on the BEA list due to no state income tax and overall low living expenses. Sioux Falls and Rapid City are rapidly growing, offering job opportunities in finance, manufacturing, and healthcare. Housing prices are slightly higher than some others on this list, but still below national averages and offset by tax savings and very low utility costs. Families also benefit from low crime rates and strong public schools.

Louisiana

WPR Rank: — BEA Rank: 4 (88.3) Louisiana appears prominently in the BEA ranking for its affordability in housing and everyday expenses. Cities like Baton Rouge and Lafayette offer job opportunities in healthcare, energy, and logistics, particularly tied to the state’s robust port and shipping industries. With a rich cultural backdrop and warm climate, Louisiana provides families with a distinctive lifestyle paired with low costs compared to the national average.

North Dakota

WPR Rank: — BEA Rank: 6 (88.6) North Dakota earns its spot on the BEA list with low costs for housing and everyday goods, plus no state income tax. Fargo and Bismarck offer strong job growth in energy, healthcare, and agriculture. Known for its safety and tight-knit communities, North Dakota is a practical choice for families who prioritize stability and outdoor access.

Missouri

WPR Rank: 6 (88.7) BEA Rank: — Missouri offers a perfect balance of affordable city living and small-town charm. Housing costs are low, with ample job opportunities in logistics, manufacturing, and healthcare. Families are drawn to cities like St. Louis, Kansas City, and Springfield for their strong school systems and family-friendly amenities.

Michigan

WPR Rank: 9 (90.4) BEA Rank: — Michigan ranks in the top 10 for WPR due to affordable housing and lower transportation costs. Detroit and Grand Rapids are revitalizing job centers, especially in manufacturing, healthcare, and tech. Michigan’s Great Lakes shoreline and abundance of parks make it a beautiful, affordable option for families who love the outdoors.

Indiana

WPR Rank: 10 (90.5) BEA Rank: — Indiana offers a strong economy, low property taxes, and affordable housing. The state boasts highly rated suburban school systems around Indianapolis, Fort Wayne, and Evansville. Job markets in manufacturing, logistics, and healthcare are growing, making it an attractive place for families seeking affordability without sacrificing opportunity.

Tennessee

WPR Rank: 10 (90.5) BEA Rank: — Tennessee combines a lack of state income tax with affordable housing and a booming job market in Nashville, Chattanooga, and Knoxville. Its scenic landscapes, from the Smoky Mountains to river valleys, provide a beautiful backdrop for family life. The strong music, entertainment, and healthcare industries help fuel economic growth.

Tips for families considering a move

If you’re looking to move your family to one of these states, it’s important to do your research first. Take these tips into consideration.

• Compare job markets: Research job opportunities in healthcare, education, and tech.

• Evaluate school districts: GreatSchools.org is a helpful tool to check ratings.

• Factor in taxes: Some states have no state income tax (like South Dakota), while others may have higher property or sales taxes.

• Test drive cities: Visit your top choices before committing. Check out neighborhoods, commute times, and local amenities.

• Budget moving costs: Moving isn't cheap, so plan for transportation, deposits, and setup fees.

Finding the best fit for your family

Every state has trade-offs. Lower costs might come with fewer job opportunities in some areas, while larger cities offer more amenities at a higher price. These rankings give you a starting point, but the right choice depends on what fits your family’s needs, lifestyle, and financial goals.

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This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.