Inflation has fallen sharply from its post-pandemic peak of 9% in 2022, Just negative every month For the first time since May 2020, prices remain above Fed policymakers say Suitable for a stable economy. Further compromising the ability to make ends meet: The growing insurance crisis It affects not only homeowners but also renters because landlords pass on the costs.
The cost of living does vary greatly from state to state, making some places more affordable than others.
Companies know a low cost of living can help them attract workers. This is why many people factor cost of living into their location decisions. That’s why CNBC considers cost of living in our annual state competitiveness rankings, America’s Best States for Business.
Based on our 2024 methodwe rate states based on index Prices of various goods and services calculated by the Council for Community and Economic Research (C2ER). We also focus on housing affordability. This year, due to the insurance crisis, we considered the cost of insuring the median-priced home in each state based on the latest available data.
exist some states, the result is very ugly. But not in these ten states. Here are the cheapest places to live in the United States in 2024, along with some picks for prices in each state’s most expensive metro areas.
10. Wisconsin
Christine Prahl | Stocks | Getty Images
Even in the most expensive metro areas Wisconsin — Madison — Life can be relatively cheap. Take the price of a six-pack of beer, for example, because we’re in Wisconsin after all. There are some great local beers, but for consistency, the C2ER Index uses Heineken. UW’s tuition is 30% lower than other Seattle universities. But what’s really cheap in the Badger State is homeowners insurance. The median home insurance premium is $750 per year, among the lowest in the country.
2024 Cost of Living Score: 35 points out of 50 (highest state grade: B+)
consumer price index (June, Midwest, Middle East and North): up 2.2%
Annual Home Insurance (Statewide): $750
average house price (Madison): $520,565
Half a gallon of almond milk: $4.79
Monthly energy bill: $226.90 USD
9.Kansas
This aerial photo was taken in downtown Manhattan, Kansas, USA, with cars parked on Poyntz Avenue
Doug Barrett | Bloomberg | Getty Images
Can you imagine renting a two-bedroom apartment in Manhattan for under $1,000 a month? If you’re in Manhattan, you can Kansas, where the average is $996. In Manhattan, New York, a similar place goes for $5,215. If you really like the place in Kansas, you can use the money you save to go to New York a few times a year. But while in New York, even if you can shell out a wad of cash from the money you save on rent, be wary of high prices if you go to the movies. The cost will be about 10% higher than what you would pay at home. Still, home insurance is getting more expensive in Kansas due to the risk of tornadoes, severe storms and wildfires.
2024 Cost of Living Score: 36 out of 50 (Top State Grade: B+)
consumer price index (June, Central and Western Region, Central and Northwest Division): up 3.0%
Annual Home Insurance (Statewide): $1,523
average house price (Manhattan Subway): $395,394
Half a gallon of almond milk: $4.60
Monthly energy bill: $217.21
8. Missouri
Ronald McDonald statue on a McDonald’s bench in Bethany, Missouri.
Bernard P. Freer | Bernard P. Freer Global Image Group | Getty Images
Show me the McDonald’s Quarter Pounder with Cheese in Kansas City, Missouri, I’ll show you a burger that’s 36% cheaper than what you’d order in Boston. Washing it down with coke saves about 5%. However, the median home in The Show Me State is $1,257 and premiums are rising for the same reasons as neighboring Kansas. The people of Missouri would undoubtedly be grateful if someone could show them a way out of this crisis.
2024 Cost of Living Score: 38 points out of 50 (highest state grade: A-)
consumer price index (June, Central and Western Regions, Central and Northwest Divisions): up 3.0%
Annual Home Insurance (Statewide): $1,257
average house price (Kansas City): $440,210
Half a gallon of almond milk: $4.62
Monthly energy bill: $217.10
7. Pennsylvania
Homes for sale in Philadelphia, Pennsylvania, USA
Hannah Bell | Bloomberg | Getty Images
The overall cost of living is Keystone State Basically consistent with the national average. But the real bargain for Pennsylvanians is homeowners insurance. The annual insurance premium for a median-priced home is just $807. That’s the third-lowest fee in the nation, or half as much as in Nebraska. Now, the state is working to make insurance not only affordable, but reliable. In May, amid reports that insurance companies were abandoning some policyholders due to roof damage based solely on aerial images, the Pennsylvania Department of Insurance released a Notice Reminds insurance companies of their obligations under state law and gives policyholders the right to challenge such actions.
2024 Cost of Living Score: 39 points out of 50 (highest state grade: A-)
consumer price index (June, Northeast, Mid-Atlantic): Up 3.8%
Annual Home Insurance (Statewide): $807
average house price (Allentown): $496,134
Half a gallon of almond milk: $4.54
Monthly energy bill: $210.10
5. (tie) Indiana
Aerial view of the County Courthouse and Bell Tower in the historic town of Paoli, Indiana.
Joe Thom | Visions of America | Universal Image Group | Getty Images
While there are some areas like Bloomington with higher housing prices, most areas have Indiana It goes against national affordability trends. Home prices in most parts of the state are around $200,000. Like in Muncie, you can buy a brand new four-bedroom house for $256,000, only one-sixth of what it costs in San Jose, California.
2024 Cost of Living Score: 40 points out of 50 (Highest state grade: A-)
consumer price index (June, Midwest, Middle East and North): up 2.2%
Annual Home Insurance (Statewide): $1,007
average house price (Bloomington): $489,491
Half a gallon of almond milk: $4.78
Monthly energy bill: $206.98
5. (tie) Illinois
A home in the Gold Coast neighborhood will be available for sale on November 13, 2023 in Chicago, IL.
Scott Olson | Getty Images
Even taking into account the expensive Chicago area, the median home price in Lincoln Land is just $301,900, according to Redfin. In some areas of the state, such as Decatur, prices are much cheaper. Illinois Insurance premiums have also remained constant, with the median home costing less than $1,000 to insure. That could change, however, as Allstate and State Farm both seek approval for double-digit rate hikes this year.
2024 Cost of Living Score: 40 points out of 50 (Highest state grade: A-)
consumer price index (June, Midwest, Middle East and North): up 2.2%
Annual Home Insurance (Statewide): $997
average house price (Chicago): $540,091
Half a gallon of almond milk: $4.87
Monthly energy bill: $206.98
4. Ohio
A worker moves a ladder outside a home under construction at the Romanelli & Hughes Construction Company subdivision in Powell, Ohio, U.S.
Ty Wright | Bloomberg | Getty Images
Housing is very cheap buckeye state, which includes apartment rentals. A two-bedroom home in Findlay costs about $921, about a quarter of the price in Honolulu. Despite the state’s high risk of storm damage, Ohio’s home insurance premiums are the fourth-lowest in the nation, according to the nonprofit First Street Foundation.
2024 Cost of Living Score: 42 points out of 50 (highest state score: A)
consumer price index (June, Midwest, Middle East and North): up 2.2%
Annual Home Insurance (Statewide): $845
average house price (Lima): $459,420
Half a gallon of almond milk: $4.62
Monthly energy bill: $200.81
3.Michigan
Construction workers install door and window frames on a home under construction in Broomfield Hills, Michigan.
Emily Erkonen | Bloomberg via Getty Images
Is it time for your annual eye exam in Kalamazoo? Expect to pay just $74.50, less than half the cost in Portland, Maine. Wolverine State It also offers some of the most affordable housing in the country—a two-bedroom apartment in Kalamazoo rents for about $837 per month. Plus, how fun would it be to be able to say you live in Kalamazoo? For homeowners, the monthly insurance premium for a mid-priced home is only $905. It’s really surprising!
2024 Cost of Living Score: 44 points out of 50 (highest state grade: A+)
consumer price index (June, Midwest, Middle East and North): up 2.2%
Annual Home Insurance (Statewide): $905
average house price (Detroit): $519,288
Half a gallon of almond milk: $4.84
Monthly energy bill: $180.47
2. Iowa
Crop Scout Luke Mullet measures ears of corn during the Pro Farmer Midwest Crop Tour near Cresco, Iowa, USA
Julie Kinson | Reuters
If you have a keen eye for bargains, you already know hawkeye stateLast year it won our low cost of living crown. It slipped to second place this year, partly due to insurance premiums, which we didn’t consider last year. They’re still relatively low, but they’ve been trending higher as Iowa’s risk for storms, tornadoes and even fires increases. Prices for other basic items are also very affordable. Will any self-respecting Iowan buy frozen corn? It’s cheap, that’s for sure. A bag of frozen corn only costs $1.56, about 30% cheaper than in Chicago.
2024 Cost of Living Score: 45 points out of 50 (highest state grade: A+)
consumer price index (June, Central and Western Regions, Central and Northwest Divisions): up 3.0%
Annual Home Insurance (Statewide): $926
average house price (Ames): $403,253
Half a gallon of almond milk: $4.72
Monthly energy bill: $182.60
1. West Virginia
Homes in downtown Logan, West Virginia, USA
Maddie McGarvey | Maddie McGarvey Bloomberg | Getty Images
You’ll realize maximum savings within mountain state, a loaf of bread costs 36% of what it costs in Fort Lauderdale, Florida, while a four-bedroom home in Charleston costs about a quarter of the price of a similar home in Seattle. This isn’t lost on the West Virginia Department of Economic Development, which highlights the low cost of living in its marketing to businesses.
“Employees will also benefit from the low cost of living as the cost of living is 12% lower than the national average,” the agency said. website claim.
The blurb doesn’t say that, but the implication is clear: A low cost of living means companies can pay lower wages than in more expensive states. It seems that’s what they did. According to the U.S. Bureau of Labor Statistics, West Virginia’s average hourly wage in 2023 was $25.10, ranking third in the nation.
But at least your money goes further in the cheapest state in America.
2024 Cost of Living Score: 46 points out of 50 (highest state grade: A+)
consumer price index (June, Southern, South Atlantic Division): Up 2.9%
Annual Home Insurance (Statewide): $920
average house price (Morgantown): $367,599
Half a gallon of almond milk: $4.56
Monthly energy bill: $178.61
This article has been updated to reflect the specific milk types used in C2ER’s pricing analysis.
