Thinking about moving in 2023? These 11 affordable U.S. states offer budget-friendly living and housing costs, low unemployment rates, and more. Check out our list of the most affordable states to live in 2023!
Alabama
Photo via @roadtripsandrollercoasters
- Population: 5,039,877
- Home Price: $157,100 median purchase price; $852 median monthly rent
- Median Household Income: $54,943
- Unemployment Rate: 2.7%
- Cost of Living: 12% lower than the U.S. average
If you want to live in an affordable Southern state, check out Alabama! 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 a variety of beaches and the Gulf of Mexico. In addition to offering low sales tax and income tax, Alabama has jobs across industries like aerospace, medical technology, and technological innovations. Check out the openings at several industry leaders headquartered in the state, like Encompass Health, Regions Financial, and Hibbett Sports! For those looking for things to do in Sweet Home Alabama, the city is rich with history, so be sure to visit historical sites in Montgomery or Birmingham, like the Rosa Parks Museum or the Birmingham Civil Rights National Monument.
HOW MUCH WILL MOVING COST?
Arkansas
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- Population: 3,025,891
- Home Price: $142,100 median purchase price; $803 median rent price
- Median Household Income: $52,123
- Unemployment Rate: 3.6%
- Cost of Living: 13% lower than the U.S. average
Wondering why so many people choose to live in the cheap state of Arkansas? The Land of Opportunity has budget-friendly housing prices, but that’s not all—Arkansas is also one of the best places to live in the south. Residents can find jobs with the state’s largest employers like Tyson Foods, J.B. Hunt Transport Services, and Walmart, which is headquartered in Arkansas. After the 9-to-5, relax and find out how Arkansas earned the nickname, “The Natural State.” Enjoy the incredible outdoor recreation attractions in the Ozark Mountains, Petit Jean State Park, and Pinnacle Mountain State Park.
Georgia
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- Population: 10,799,566
- Home Price: $206,700 median purchase price; $1,110 median rent price
- Median Household Income: $65,030
- Unemployment Rate: 2.9%
- Cost of Living: 7% lower than the U.S. average
Despite being one of the most populated states, Georgia has an affordable cost of living, making it one of the top states to live in for 2023! Residents in Georgia can benefit from low taxes—the state is especially tax-friendly for retirees since social security income is non-taxable. Applicants in the Empire State of the South can find jobs with top employers in Georgia like The Coca-Cola Company, United Parcel Service, and Delta Airlines—which are all headquartered in Atlanta! Explore Georgia’s great outdoors in Chehaw Park & Zoo, ride roller coasters at Wild Adventures, or learn the history 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 historic sites like the Birth Home of Martin Luther King, Jr. and Ebenezer Baptist Church.
Indiana
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- Population: 6,805,985
- Home Price: $158,500 median purchase price; $891 median monthly rent price
- Median Household Income: $61,944
- Unemployment Rate: 3%
- Cost of Living: 11% lower than the U.S. average
Wondering what makes Indiana an affordable place to live in the Midwest in 2023? In addition to an overall lower cost of living, the Hoosier State’s housing costs are about 28% below the national average, making Indiana one of the best states to buy a home in the new year! Though there are many employment opportunities throughout the state, many of the biggest employers are located in Indianapolis—including pharmaceutical manufacturer Eli Lilly and Company, health insurance company Anthem, and agricultural chemical company Corteva. Explore things to do in Indiana at fun attractions like Marengo Cave, Hoosier National Forest, Indiana Dunes National Park, and the famous Fort Wayne Museum of Art!
Iowa
Photo via @iowacapitol
- Population: 3,193,079
- Home Price: $160,700 median purchase price; $845 median monthly rent
- Median Household Income: $65,429
- Unemployment Rate: 2.9%
- Cost of Living: 11% lower than the U.S. average
Don’t write off Iowa as a flyover state! Iowa boasts low housing costs, and the state’s job market continues to grow thanks to top Iowa employers like Hy-Vee, Rockwell Collins, and Principal Financial Group. Other top Iowa industries include agriculture, biosciences, finance and insurance, and food processing. With social security benefits exempt from income taxes and other retirement incomes deductible, Iowa is a great place for retirees looking to relocate. Plus, you’ll have plenty of fun things to do in the Hawkeye State with popular attractions like the Iowa State Fair in the summer, Adventureland Resort, or The Covered Bridges of Madison County!
Kansas
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- Population: 2,934,582
- Home Price: $164,800 median purchase price; $912 median monthly rent
- Median Household Income: $64,521
- Unemployment Rate: 2.8%
- 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, or accessible entertainment. In addition to ranking among the best states to buy a house and having a lower cost of living, Kansas is also known for having some of the lowest food costs in the U.S. as a top agricultural producer. Residents of the Heart of America can find plenty of jobs in Kansas across industries like technology, medicine, and manufacturing at large employers like Koch Co., Garmin, and YRC Freight. Kansas 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!
Michigan
Photo via @skykissesearth
- Population: 10,050,811
- Home Price: $172,100 median purchase price; $946 median monthly rent
- Median Household Income: $63,202
- Unemployment Rate: 4.2%
- Cost of living: 11% lower than the U.S. average
With nearly 10 million residents, Michigan‘s cost of living ranks well below the national average. Compared to the high cost of living in places like Washington, DC, Brooklyn, or Seattle, Michigan’s biggest city, Detroit, is a great option for affordable urban living! Known as the automotive hub of the U.S., the Great Lakes state is the headquarters of Ford Motor Company, the state’s largest employer. Residents can also find jobs in Michigan with other employers like Whirlpool, medical technology company Stryker Corp., and The Dow Chemical Company. Fall in love with Michigan’s great recreation spots, including the Great Lakes, Tahquamenon Falls State Park, Silver Lake Sand Dunes, and Belle Isle Park!
Mississippi
Photo via @mscapitol
- Population: 2,949,965
- Home Price: $133,000 median purchase price; $830 median monthly rent
- Median Household Income: $49,111
- Unemployment Rate: 3.9%
- Cost of living: 18% lower than the U.S. average
Known as the Magnolia State, Mississippi has been ranked as the most affordable place to live in the U.S. The top industries in Mississippi are in 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, Mississippi residents can find plenty of things to do at major attractions like the Davis Bayous Area Gulf Islands National Seashore, the Elvis Presley Birthplace, the Mississippi Museum of Natural Science, and the Grammy Museum.
Missouri
Photo via @carrietergin
- Population: 6,168,187
- Home Price: $171,800 median purchase price; $886 median monthly rent
- Median Household Income: $61,043
- Unemployment Rate: 2.6%
- Cost of Living: 10% lower than the U.S. average
Often called The Show-Me State, Missouri is another affordable place to live due to its reasonable living costs and housing prices 19% 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 another affordable city to call home. Missouri has educational opportunities like the Midwest Student Exchange Program, which offers Midwestern students in-state tuition, helping to alleviate the cost of living for students and young professionals. Missouri’s biggest industries include agriculture, aerospace, and manufacturing, but residents can also find jobs with large companies like Ascension, Enterprise Holdings, Anheuser-Busch, and the AMC Theatres headquarters. Stay busy in Missouri with fun attractions like Worlds of Fun, Gateway Arch National Park, and the Missouri Botanical Garden!
Oklahoma
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- Population: 3,986,639
- Home Price: $150,800 median purchase price; $862 median monthly rent
- Median Household Income: $56,956
- Unemployment Rate: 3.4%
- 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. 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 Oklahoma residents major attractions in affordable cities like Oklahoma City and Tulsa at the Oklahoma City Zoo, National Cowboy & Western Heritage Museum, and Turkey Mountain Urban Wilderness Area.
Tennessee
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- Population: 6,975,218
- Home Price: $193,700 median purchase price; $951 median monthly rent
- Median Household Income: $58,516
- 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 education and entertainment make up the top industries in Tennessee, residents can also find careers at top employers like FedEx, HCA Healthcare, and Dollar General. Also, 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. Or visit other top attractions in Tennessee like Dollywood, Graceland, or the Country Music Hall of Fame & Museum.
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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.
