Thinking about moving in 2025? Many states across the U.S. offer affordable housing costs, low unemployment rates, and plenty of things to do. Check out our list of the most affordable states to live in 2025!
- Alabama
- Arkansas
- Georgia
- Indiana
- Iowa
- Kansas
- Mississippi
- Missouri
- Nebraska
- Oklahoma
- Tennessee
- West Virginia
Alabama
- Population: 5,108,468
- Home Price: $179,400 median purchase price; $925 median monthly rent
- Median Household Income: $59,609
- Unemployment Rate: 2.4%
- Cost of Living: 12% lower than the U.S. average
If you want to live in an affordable Southern state, consider Alabama! In addition to offering low sales tax and income tax, there are plenty of jobs in Alabama across key industries like aerospace, medical technology, and technological innovation. Start your career at industry leaders like healthcare provider Encompass Health, full-service commercial banker Regions Financial, or sports-goods retailer Hibbett Sports! Residents living in northern Alabama will enjoy picturesque views of the Talladega National Forest and Red Mountain Park, while those living in southern Alabama have access to several great beaches and the Gulf of Mexico. For those looking for things to do in the Yellowhammer State, be sure to visit historical sites in Montgomery or Birmingham, like the Rosa Parks Museum or the Birmingham Civil Rights National Monument.
Arkansas
- Population: 3,067,732
- Home Price: $162,400 median purchase price; $868 median monthly rent
- Median Household Income: $56,335
- Unemployment Rate: 3.3%
- Cost of Living: 13% lower than the U.S. average
There’s plenty to experience in the affordable state of Arkansas. The Land of Opportunity has low-cost housing prices for their French Colonial, Federal, and Greek Revival-style homes—and is home to the beautiful city of Fayetteville, one of the best places to live in the South! Residents can find jobs with the state’s largest employers, including Fortune 500 companies headquartered in Arkansas, like Tyson Foods, J.B. Hunt Transport Services, and Walmart. After a weekly commute, discover how Arkansas earned the nickname, “The Natural State,” by checking out any number of historic parks. And enjoy incredible outdoor recreation attractions in the Ozark Mountains, Petit Jean State Park, and Pinnacle Mountain State Park.
Georgia
- Population: 11,029,227
- Home Price: $245,900 median purchase price; $1,221 median monthly rent
- Median Household Income: $71,335
- Unemployment Rate: 3.4%
- Cost of Living: 9% lower than the U.S. average
Despite being one of the most populated states, Georgia still has an affordable cost of living, making it one of the top states to live in for 2025! Residents in Georgia can benefit from low taxes, and non-taxable social security income makes it one of the most tax-friendly states for retirees. Georgia also offers several affordability programs designed to help residents with funds for groceries, provide low-cost medical care, and find safe and affordable housing. Applicants in the Empire State of the South can find jobs with top employers in Georgia like The Home Depot, United Parcel Service (UPS), and Delta Airlines—which are all based out of Atlanta! Explore Georgia’s great outdoors in Stone Mountain Park, ride roaring coasters at Wild Adventures, or learn the origins of one of the world’s most beloved fountain drinks at the World of Coca-Cola. History buffs can spend the day at the Martin Luther King, Jr. National Historical Park, visiting important sites like the Birth Home of Martin Luther King, Jr., and Ebenezer Baptist Church.
Indiana
- Population: 6,862,199
- Home Price: $183,600 median purchase price; $967 median monthly rent
- Median Household Income: $67,173
- Unemployment Rate: 3.7%
- Cost of Living: 12% lower than the U.S. average
Wondering what makes Indiana an affordable Midwest state? In addition to an overall lower cost of living and having some of the best places to live in the Midwest, the Hoosier State’s housing costs come in at about 20% below the national average, leading to one of the countries strongest housing markets. Though there are many options for employment in Indiana, many of the biggest employers are located in Indianapolis—including pharmaceutical manufacturer Eli Lilly and Company, health insurance company Elevance Health, and agricultural chemical company Corteva. Outdoor lovers can discover great things to do in Indiana at fun attractions like Marengo Cave, Hoosier National Forest, and Indiana Dunes National Park. Or enjoy family fun in Indiana by visiting The Children’s Museum of Indianapolis and touring the famous Fort Wayne Museum of Art!
Iowa
- Population: 3,207,004
- Home Price: $181,600 median purchase price; $914 median monthly rent
- Median Household Income: $70,571
- Unemployment Rate: 3.3%
- Cost of Living: 11% lower than the U.S. average
Iowa boasts low housing costs, some of the nation’s most affordable healthcare, and an active job market—making it a great state to call home! Find work at top Iowa employers like Hy-Vee, United Cooperative, and Principal Financial Group. You can also explore other important industries in Iowa, such as advanced manufacturing, agribusiness, information solutions, and distribution. Ready to retire? With social security benefits exempt from income taxes and other retirement incomes deductible, Iowa is one of the best places for retirees looking to relocate. Plus, there are plenty of fun things to do for all ages in the Hawkeye State with thrilling rollercoasters at Adventureland Resort, natural exhibits at the National Mississippi River Museum & Aquarium, and scenic views from The Covered Bridges of Madison County. And don’t forget to bring the whole family to celebrate agriculture, industry, and entertainment at world-famous summer event, the Iowa State Fair!
Kansas
- Population: 2,940,546
- Home Price: $189,300 median purchase price; $986 median monthly rent
- Median Household Income: $69,747
- Unemployment Rate: 2.9%
- Cost of Living: 12% lower than the U.S. average
Check out the state of Kansas if you’re looking for affordable living, great job opportunities, community, and accessible entertainment. In addition to ranking among the best states to buy a house and having a reasonable cost of living, Kansas is also known for having some of the lowest grocery prices in the U.S. as a top agricultural producer. Residents of the Sunflower State can find plenty of jobs in Kansas across industries like technology, medicine, and manufacturing at large employers like Koch Industries, Garmin, and Synergy Group. Kansas also offers excellent entertainment and historical attractions like the Dwight D. Eisenhower Presidential Library & Museum, Oz Museum, and Sedgwick County Zoo—in addition to the big-city amenities and entertainment in Kansas City, like Kansas Speedway, Kansas City Chiefs (NFL) and Royals (MLB) games, Legoland, and more!
Mississippi
- Population: 2,939,690
- Home Price: $151,000 median purchase price; $896 median monthly rent
- Median Household Income: $52,985
- Unemployment Rate: 3.3%
- Cost of living: 17% lower than the U.S. average
Referred to as the Magnolia State, Mississippi has been ranked as the most affordable place to live in the U.S. thanks to not only its low housing costs, but also having some of the lowest gas costs. The state of Mississippi has an especially low property tax and offers full tax exemptions for all forms of retirement income, including social security and IRA income. The top industries in Mississippi include the fields of agriculture, manufacturing, education, and health services—residents can find jobs in Mississippi at top employers like Sanderson Farms, the University of Mississippi Medical Center, and Ingalls Shipbuilding. For recreation, residents will find plenty of fun things to do in Mississippi with major attractions like the Davis Bayou Area Gulf Islands National Seashore and the Elvis Presley Birthplace, as well as landmark museums like the Mississippi Museum of Natural Science and the Grammy Museum.
Missouri
- Population: 6,196,156
- Home Price: $199,400 median purchase price; $957 median monthly rent
- Median Household Income: $65,920
- Unemployment Rate: 3.2%
- Cost of Living: 11% lower than the U.S. average
Missouri is another affordable place to live due to its reasonable living costs and housing prices as much as 22% below the national average! For those wanting urban life, the cost of living in St. Louis is 15% lower than the national average, which makes it an affordable city to call home. The state has excellent education opportunities like the Midwest Student Exchange Program, which offers Midwestern students a discounted tuition rate, helping to alleviate the cost of living for students and young professionals. Missouri’s major industries include agriculture, aerospace, and manufacturing, but residents can also find jobs with large companies like Ascension, Enterprise Holdings, Anheuser-Busch, and AMC Theatres. And, after a long day of work, stay busy with fun Missouri attractions like Worlds of Fun, Gateway Arch National Park, and the Missouri Botanical Garden!
Nebraska
- Population: 1,978,379
- Home Price: $205,600 median purchase price; $987 median monthly rent
- Median Household Income: $71,722
- Unemployment Rate: 2.3%
- Cost of Living: 11% lower than the U.S. average
Aptly-named the Cornhusker State, Nebraska is home to a sprawling agricultural landscape in the heart of America’s Great Plains. Not only is it ranked among the best states in the nation, but it’s an especially affordable place to live, boasting some of the lowest utility costs. Whether you’re seeking employment at Fortune 500 companies like Berkshire Hathaway or Union Pacific, or settling down after military service, the state’s largest city, Omaha, is an excellent Midwest city for everyone from young professionals to retired veterans. Check out affordable housing in Nebraska with quaint styles like Colonial Revival, Bungalow, and American Foursquare. Get acquainted with Nebraska’s history at classic venues like the Durham Museum or Nebraska State Capitol. Explore the great outdoors by trekking through North Platte River trails at Chimney Rock or hiking the grounds at Toadstool Geological Park. Or spend a day with family viewing animal exhibits up-close at the largest zoo in America, Henry Doorly Zoo!
Oklahoma
- Population: 4,053,824
- Home Price: $170,500 median purchase price; $934 median monthly rent
- Median Household Income: $61,364
- Unemployment Rate: 3.3%
- Cost of Living: 14% lower than the U.S. average
Want to move to a state with one of the lowest costs of living? Oklahoma consistently ranks as one of the states with the most affordable housing costs. The state also has a number of financial assistance programs through staples like SNAP and WIC, as well as local nonprofit Bethel Foundation for single mothers and young children. Management, healthcare, and engineering are among Oklahoma’s major industries, with top employers including companies like Helmerich & Payne, Saint Francis Health System, and The University of Oklahoma. The Sooner State also offers major attractions in affordable cities like Oklahoma City and Tulsa at the family-friendly Oklahoma City Zoo and National Cowboy & Western Heritage Museum. And outdoor enthusiasts can interact with Oklahoma nature at the Woolaroc Museum & Wildlife Preserve or the Turkey Mountain Urban Wilderness Area.
Tennessee
- Population: 7,126,489
- Home Price: $232,100 median purchase price; $1,047 median monthly rent
- Median Household Income: $64,035
- Unemployment Rate: 3.5%
- Cost of Living: 11% lower than the U.S. average
Looking for a state with festive live music, amazing barbecue, and great affordability? Consider moving to Tennessee! With great cities like Nashville, Memphis, and Chattanooga, The Volunteer State has no income tax, which helps boost an already affordable cost of living in Tennessee. While healthcare and manufacturing make up the top industries in Tennessee, residents can also find careers at major employers like FedEx, Dollar General, and Guardian Access Solutions. If you’re an outdoor enthusiast who enjoys hiking, fishing, and whitewater rafting, you’ll have a blast at nearby Great Smoky Mountains National Park and Cherokee National Forest. Be sure to stop in for some of the best BBQ in Tennessee at must-try spots like Rendezvous, Helen’s Bar-B-Q, and Peg Leg Porker. Or visit other top attractions in Tennessee like Dollywood, Graceland, or the Country Music Hall of Fame & Museum.
West Virginia
- Population: 1,770,071
- Home Price: $145,800 median purchase price; $831 median monthly rent
- Median Household Income: $55,217
- Unemployment Rate: 4.2%
- Cost of Living: 13% lower than the U.S. average
West Virginia, also known as the Mountain State, is one of the cheapest states to live in with a plethora of beautiful rivers and mountains, as well as a vast park system. Not only is West Virginia a tax-friendly state due to its low property taxes, but its also one of the best places to retire thanks to non-taxable social security benefits. The state’s major industries include natural sectors like mining, logging, and manufacturing or technological fields like aerospace and energy. Find a job in West Virginia at some of the state’s largest companies, including West Virginia University, Huntington Alloys Corporation, or Thomas Health. Get up close with nature at Blackwater Falls State Park, Harpers Ferry Historical Park, or Cass Scenic Railroad State Park. Or traverse West Virginia mountains by skiing at Snowshoe Mountain or hiking to Spruce Knob.
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Population, median household income, and home price statistics from United States Census Bureau. Unemployment statistics from U.S. Bureau of Labor Statistics. Cost of living statistics from AreaVibes.