These are America’s 10 cheapest states to live in

Inflation has come down considerably from its post-pandemic peak of 9% in 2022, and just went negative on a monthly basis for the first time since May 2020, but prices are still higher than Federal Reserve policymakers say is appropriate for a stable economy. Further hurting the ability to make ends meet: a growing insurance crisis affecting not only homeowners, but also renters as landlords pass on the expense.

The cost of living does vary widely from state to state, making some places more affordable than others.

Companies know that a low cost of living can help them attract workers. That is why many factor the cost of living into their location decisions. And it is why CNBC considers cost of living in our annual state competitiveness ranking, America’s Top States for Business.

Under our 2024 methodology, we rate the states based on an index of prices for a broad range of goods and services calculated by the Council for Community and Economic Research, C2ER. We also look at housing affordability. New this year, because of the insurance crisis, we consider the cost of insurance on a median priced home in every state, based on the most recent available data.

In some states, the results are downright ugly. But not in these ten states. Here are America’s cheapest places to live in 2024, along with some selected prices in the most expensive metros in each state.

10. Wisconsin

Even in the most expensive metro area in Wisconsin — Madison — life can be a relative bargain. Take the price of a six-pack of beer, because, after all, we are in Wisconsin. There are some great local brews, but the C2ER index uses Heineken for consistency’s sake. It will cost you 30% less in the home of the University of Wisconsin than it will in the home of that other UW in Seattle. But the real bargain in The Badger State is homeowners insurance. At $750 a year to insure a median priced home, it is the lowest premium in the nation.

2024 Cost of Living Score: 35 out of 50 points (Top States Grade: B+)

Consumer Price Index (June, Midwest Region, East North Central Division): Up 2.2%

Annual Homeowners Insurance (statewide): $750

Average Home Price (Madison): $520,565

Half Gallon of Almond Milk: $4.79

Monthly Energy Bill: $226.90

9. Kansas

Can you imagine a two-bedroom apartment in Manhattan for under $1,000 a month? You can if you are in Manhattan, Kansas, where the average is $996. In Manhattan, New York, a comparable place would go for $5,215. If you do go with the place in Kansas, you can afford a couple of trips to New York every year with the savings. But while in the Big Apple, even with that wad of cash you were able to bring along from the savings on your rent, beware of sticker shock if you go see a movie. It will cost about 10% more than you pay at home. Still, that home in Kansas is getting more expensive to insure, due to the risk of tornadoes, severe storms, and wildfires.

2024 Cost of Living Score: 36 out 50 points (Top States Grade: B+)

Consumer Price Index (June, Midwest Region, West North Central Division): Up 3.0%

Annual Homeowners Insurance (statewide): $1,523

Average Home Price (Manhattan Metro): $395,394

Half Gallon of Almond Milk: $4.60

Monthly Energy Bill: $217.21

8. Missouri

Show me a McDonald’s Quarter Pounder with Cheese in Kansas City, Missouri, and I’ll show you a burger that is 36% cheaper than it would be if you ordered it in Boston. The Coke to wash it down will cost you about 5% less. However, at $1,257 to insure a median priced home, premiums are rising in The Show Me State for the same reasons as they are in neighboring Kansas. Missourians would no doubt appreciate if someone would show them a way out of that crisis.

2024 Cost of Living Score: 38 out of 50 points (Top States Grade: A-)

Consumer Price Index (June, Midwest Region, West North Central Division): Up 3.0%

Annual Homeowners Insurance (statewide): $1,257

Average Home Price (Kansas City): $440,210

Half Gallon of Almond Milk: $4.62

Monthly Energy Bill: $217.10

7. Pennsylvania

Overall living costs in The Keystone State are roughly in line with the national average. But the real bargain for Pennsylvanians is in homeowners’ insurance. The annual premium for a median priced home is just $807. That’s the third lowest in the nation, or only half of what they are paying in Nebraska. Now, the state is trying to keep insurance not only affordable, but dependable. In May, following reports that insurance companies were dropping some policyholders for alleged roof damage based on aerial imagery alone, the Pennsylvania Insurance Department issued a notice reminding insurers of their obligations under state law to give policyholders the right to challenge those kinds of actions.

2024 Cost of Living Score: 39 out of 50 points (Top States Grade: A-)

Consumer Price Index (June, Northeast Region, Mid-Atlantic Division): Up 3.8%

Annual Homeowners Insurance (statewide): $807

Average Home Price (Allentown): $496,134

Half Gallon of Almond Milk: $4.54

Monthly Energy Bill: $210.10

5. (tie) Indiana

While there are some pricier pockets like Bloomington, housing prices in most of The Hoosier State buck the national affordability trend. Prices in much of the state are tracking in the mid-$200,000s. Like in Muncie, where you can get a brand new, four-bedroom house for $256,000, or one-sixth of what it would cost in San Jose, California.

2024 Cost of Living Score: 40 out of 50 points (Top States Grade: A-)

Consumer Price Index (June, Midwest Region, East North Central Division): Up 2.2%

Annual Homeowners Insurance (statewide): $1,007

Average Home Price (Bloomington): $489,491

Half Gallon of Almond Milk: $4.78

Monthly Energy Bill: $206.98

5. (tie) Illinois

Even factoring in pricey Chicagoland, the median home price in The Land of Lincoln is just $301,900, according to Redfin. In some parts of the state, like Decatur, it’s far cheaper. Illinois is also holding the line on insurance premiums, with the cost to insure a median priced home staying under $1,000. That could be changing, however, with both Allstate and State Farm seeking approval for double-digit rate increases this year.

2024 Cost of Living Score: 40 out of 50 points (Top States Grade: A-)

Consumer Price Index (June, Midwest Region, East North Central Division): Up 2.2%

Annual Homeowners Insurance (statewide): $997

Average Home Price (Chicago): $540,091

Half Gallon of Almond Milk: $4.87

Monthly Energy Bill: $206.98

4. Ohio

Housing is a bargain in The Buckeye State, and that includes apartment rentals. A two-bedroom in Findlay will set you back around $921, or about a quarter of what it would cost in Honolulu. Ohioans also enjoy the fourth-lowest homeowners insurance premiums in the nation, despite the state being at a heightened risk of storm damage, according to data from the non-profit First Street Foundation.

2024 Cost of Living Score: 42 out of 50 points (Top States Score: A)

Consumer Price Index (June, Midwest Region, East North Central Division): Up 2.2%

Annual Homeowners Insurance (statewide): $845

Average Home Price (Lima): $459,420

Half Gallon of Almond Milk: $4.62

Monthly Energy Bill: $200.81

3. Michigan

Time for your yearly eye exam in Kalamazoo? Expect to pay just $74.50, or less than half the cost in Portland, Maine. The Wolverine State also offers some of the most affordable housing in the country — a two bedroom apartment in Kalamazoo rents for about $837 a month. Plus, how fun would it be to be able to say that you live in Kalamazoo? And for homeowners, your insurance premium on a median priced home is just $905 a month. That’s eye-popping!

2024 Cost of Living Score: 44 out of 50 points (Top States Grade: A+)

Consumer Price Index (June, Midwest Region, East North Central Division): Up 2.2%

Annual Homeowners Insurance (statewide): $905

Average Home Price (Detroit): $519,288

Half Gallon of Almond Milk: $4.84

Monthly Energy Bill: $180.47

2. Iowa

If you have an eagle eye for bargains, you already know about The Hawkeye State, which captured our crown for low cost of living last year. It slips to No. 2 this year in part because of insurance premiums, which we did not consider last year. They’re still relatively low, but they have been moving higher in response to Iowa’s increased risk of storms, tornadoes, and even fires. Prices for other basic goods are affordable, too. Would any self-respecting Iowan buy frozen corn? It’s inexpensive, that’s for sure. You’ll pay $1.56 for a bag of frozen corn, or about 30% less than you’d pay in Chicago.

2024 Cost of Living Score: 45 out of 50 points (Top States Grade: A+)

Consumer Price Index (June, Midwest Region, West North Central Division): Up 3.0%

Annual Homeowners Insurance (statewide): $926

Average Home Price (Ames): $403,253

Half Gallon of Almond Milk: $4.72

Monthly Energy Bill: $182.60

1. West Virginia

You’ll achieve peak savings in The Mountain State, where a loaf of bread is 36% of what it would cost in Fort Lauderdale, Florida, and a four-bedroom house in Charleston costs about a quarter of the price of a similar home in Seattle. None of this is lost on the West Virginia Economic Development Department, which prominently features the low living costs in its pitch to businesses.

“With the cost of living 12% lower than the national average, employees will also benefit from low living costs,” the agency’s web site proclaims.

The pitch doesn’t come out and say this, but the implication is clear: the low cost of living means that companies can pay a lower wage than they might have to in a more expensive state. And it appears they are doing just that. West Virginia’s average hourly wage of $25.10 in 2023 was the third lowest in the nation, according to the U.S. Bureau of Labor Statistics.

But at least your money will go a whole lot further in America’s cheapest state to live in.

2024 Cost of Living Score: 46 out of 50 points (Top States Grade: A+)

Consumer Price Index (June, South Region, South Atlantic Division): Up 2.9%

Annual Homeowners Insurance (statewide): $920

Average Home Price (Morgantown): $367,599

Half Gallon of Almond Milk: $4.56

Monthly Energy Bill: $178.61

This article has been updated to reflect the specific type of milk used in C2ER’s pricing analysis.