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Are you thinking about relocating but don’t have a specific place in mind yet? If so, you should consider a few things, one of which is affordability. Looking into states with the lowest cost can help you find a place where you can enjoy a great quality of life without overspending.
Depending on variations in taxes, real estate, and food costs, your standard of living can be significantly impacted. Whether you’re just starting out on your own or looking for a way to reduce expenses in retirement, choosing a more affordable state can make a huge impact.
In my research, I examined data from census records and real estate research. The average cost of living can differ significantly depending on location, so we’ve compiled a list of some states with the lowest costs of living. Use this list to help narrow down your relocation search, or let us know why you would never move to one of these states despite the savings.
Mississippi
Located in the South, Mississippi is considered the most affordable state in the U.S. It has an average property tax of 0.75%. The average price of a medium home is $178,500, and the average rent for a two-bedroom apartment is about $1,050.
Kansas
A midwestern state mainly known for beef and wheat production, Kansas has a lot to offer. The average property tax is only 1.33%, although rates change a bit depending on location. House prices can also differ by location, but the average cost for a medium home in Kansas is $223,900, and the average rent for a 2-bedroom apartment is about $1,150.
Oklahoma
One of the Great Plains states, Oklahoma, has a diverse landscape of rivers, mountains, forests, and mesas. Property taxes in Oklahoma are quite low, with an average of 0.85%. You can expect to pay an average of $203,450 for a medium home or about $1,088 to rent a two-bedroom apartment.
Alabama
If you enjoy southern living and Gulf Coast beaches, Alabama may be the place for you. Alabama property taxes are some of the lowest in the country, at 0.32%. Homes are well priced, too, with the average price of a medium home at $226,050 and the average rent of a two-bedroom apartment at about $1,095.
Arkansas
Arkansas is a beautiful southern state with mountains, forests, and plenty of opportunities for outdoor adventures. Arkansas has lower property taxes than many other states, with an average tax rate of 1.57%. The average value of a medium home in the state is $203,300, and the average rent for a 2-bedroom apartment is around $1,150.
Georgia
Georgia, another southern state with a diverse landscape, has an average property tax rate of 0.81%. If you plan to purchase a home, the prices vary a little depending on the location, but the average price for a medium home is about $358,000. If you’d prefer to rent, the average price for a 2-bedroom apartment is about $1,700.
Tennessee
Considered the country music capital of the world, Tennessee is one of the most affordable places to live. Property taxes vary by municipality, but the average property tax rate is 0.67%. An average medium home in Tennessee can cost about $317,480, and a 2-bedroom apartment will cost approximately $1,103.
Missouri
Missouri has plenty of snow in the mountains, rain in the plains, and hot, steamy summers. The state’s average property tax rate is 0.88%, slightly lower than the national average. The average price of a medium home is about $243,200, and the average rent for a two-bedroom apartment is about $1,150.
New Mexico
There’s something for everyone in New Mexico. You’ll find a wide range of cultures and a bustling arts scene. New Mexico has some of the lowest property tax rates in the country, with a state average of 0.73%. You can expect to pay about $300,225 for a medium home or about $1,313 to rent a 2-bedroom apartment.
Indiana
Like many states, Indiana is known for cold winters and hot summers. It’s also known for its motor speedway, college basketball, and plenty of art museums. The statewide average property tax rate is 0.75%, and you can expect to pay about $242,500 for a medium home. If you prefer to rent, the average price of a two-bedroom apartment is about $1,195.
Iowa
Iowa is an agricultural state with plenty of rolling hills and fields. Property taxes in Iowa vary between areas but can run as high as 1.50%. Although property taxes can be quite high, the average price of a medium home in the state is about $214,151, and the average price for a two-bedroom apartment is about $1,100.
Michigan
With 11,000 inland lakes, Michigan is the ideal place for any water lover. The average property tax in the state is 1.32%, slightly above the national average. Much like Iowa, even though property taxes are high, home prices are not. You can expect to pay about $227,500 for a medium home or about $1,200 monthly rent for a 2-bedroom apartment.
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