States offering best value for money amid economic challenges

Although inflation rates have shown signs of stabilization, many Americans continue to face high costs in everyday expenses such as groceries, fuel, and housing. Research indicates that relocating to a different state could potentially alleviate some financial pressure due to varying cost-of-living rates across the country.

Realtor.com® has analyzed regional price parities (RPPs) data from the Bureau of Economic Analysis to identify states with differing price levels. This analysis helps determine how much $100 can purchase in goods, housing, and utilities in various regions compared to others.

California tops the list as the most expensive state, where residents spend $112.50 for what would cost $100 elsewhere. Other costly states include Hawaii at $110.80, Washington at $109.80, and Massachusetts at $109.40.

Conversely, Arkansas emerges as the state with the lowest cost of living, requiring only $86.60 for $100 worth of goods. The Southern region prominently features among states with lower living costs.

Hannah Jones, a senior economic data analyst at Realtor.com®, explains: “The three states with the lowest cost of living boast price levels more than 12% below the national level.” She adds that these areas are also generally affordable regarding housing prices: “As the trappings of modern life feel increasingly expensive to many consumers, buyers could see their dollar go further in these states.”

For those considering relocation to optimize their budget on essentials like housing and utilities, examining the top 10 states with low living costs might be beneficial:

1. Arkansas: Residents pay $86.60 for necessities; median home price is $299,000.

2. Mississippi: Residents pay $87.30; median home price is $298,000.

3. Alabama: Residents pay $87.80; median home price is $330,000.

4. South Dakota: Residents pay $88.00; median home price is $386,250.

5. Iowa: Residents pay $88.40; median home price is $299,800.

6. North Dakota: Residents pay $88.70; median home price is not specified.

7. Oklahoma: Residents pay $88.80; median home price is not specified.

8. West Virginia: Residents pay $89.20; median home price is not specified.

9. Kentucky: Residents pay $89.40; median home price is not specified.

10. Nebraska: Residents pay $89.80; median home price is not specified.

These findings provide insight into potential destinations where individuals may find a more manageable cost of living amidst ongoing economic challenges.