Even as inflation rates show signs of stabilizing, many Americans still feel the pinch when shopping for essentials like groceries, gas, and housing. If you’re seeking ways to make your budget go further, where you live can make a significant difference, given the wide variation in cost of living across the U.S.

In simple terms, the same $100 can buy you significantly more in some areas compared to others. For example, while $100 might get you five bags of groceries in one state, it may only fill three bags in another.

Top of the List: Arkansas

Leading the pack is Arkansas, the “Natural State,” where you pay only $86.60 for $100 worth of goods. Interestingly, Southern states dominate the list of top 10 states with the lowest cost of living.

According to Hannah Jones, senior economic data analyst at Realtor.com, “The three states with the lowest cost of living boast price levels more than 12% below the national level. On average, the cost of goods and services in these states is significantly lower than the national level.”

Affordable Living and Housing

The South shines not just in everyday expenses but also in real estate prices. Jones adds, “These states are also among the least expensive in terms of housing. With many consumers feeling the rising costs of modern life, buyers could see their dollar go further in these areas.”

If you’re contemplating a move to a place where your dollar stretches further for homes, groceries, gas, and utilities, here are the top 10 states with the lowest cost of living:

Realtor.com’s research team analyzed the latest regional price parities (RPPs) data from the Bureau of Economic Analysis, which measures price differences across states and metropolitan areas, expressed as a percentage of the national price level. Essentially, this tells you how much $100 will buy in different states.

Most Expensive States

Unsurprisingly, California tops the list of the most expensive states, where you need $112.50 to buy $100 worth of goods. Other costly states include Hawaii ($110.80), Washington ($109.80), and Massachusetts ($109.40).

With varying living costs across the nation, the decision of where to live can significantly impact your financial well-being. Exploring states with a lower cost of living can lead to more budget-friendly living, allowing your dollar to go further in day-to-day expenses and housing.

Join the discussion and share your thoughts on how the cost of living affects you and your community! 💬