Affordable American Dreams: Top 10 Most Budget-Friendly States to Live in 2025

Are you tired of living paycheck to paycheck in a state with a high cost of living? Look no further! We've got you covered with our list of the 10 cheapest states to settle in for affordable living in 2025. From the heartland of America to the southern states, we'll explore the most budget-friendly places to call home. Whether you're a young professional, a family, or a retiree, these states offer a great quality of life without breaking the bank.

When it comes to affordable living, several factors come into play, including housing costs, taxes, food prices, and transportation expenses. After analyzing various data sources, including the Council for Community and Economic Research and the Tax Foundation, we've compiled a list of the top 10 most affordable states to live in 2025. So, without further ado, let's dive into our countdown:

1. Oklahoma: With a cost of living index score of 88.3, Oklahoma takes the top spot as the most affordable state to live in. The median home price is around $123,000, and the state has a low sales tax rate of 4.5%.
2. Arkansas: Arkansas comes in second with a cost of living index score of 89.1. The state has a median home price of $143,000 and a low overall tax burden.
3. Tennessee: Tennessee ranks third, with a cost of living index score of 90.1. The state has a median home price of $173,000 and no state income tax.
4. Alabama: Alabama takes the fourth spot, with a cost of living index score of 90.4. The state has a median home price of $143,000 and a low sales tax rate of 4%.
5. Kentucky: Kentucky rounds out the top five, with a cost of living index score of 91.2. The state has a median home price of $143,000 and a low overall tax burden.
6. Missouri: Missouri comes in sixth, with a cost of living index score of 91.7. The state has a median home price of $173,000 and a low sales tax rate of 4.2%.
7. Mississippi: Mississippi ranks seventh, with a cost of living index score of 92.2. The state has a median home price of $123,000 and a low overall tax burden.
8. West Virginia: West Virginia takes the eighth spot, with a cost of living index score of 92.6. The state has a median home price of $114,000 and a low sales tax rate of 4%.
9. South Carolina: South Carolina comes in ninth, with a cost of living index score of 93.2. The state has a median home price of $193,000 and a low overall tax burden.
10. North Carolina: North Carolina rounds out our list, with a cost of living index score of 94.3. The state has a median home price of $193,000 and a low sales tax rate of 4.7%.

In conclusion, these 10 states offer an affordable alternative to the high cost of living in other parts of the country. From the rolling hills of Tennessee to the beaches of South Carolina, each state has its unique charm and attractions. Whether you're looking to buy a home, start a family, or retire, these states are definitely worth considering. So why not pack your bags and head to one of these budget-friendly states in 2025? Your wallet will thank you!

Methodology

Our rankings are based on data from the Council for Community and Economic Research and the Tax Foundation. We considered factors such as housing costs, taxes, food prices, and transportation expenses to determine the most affordable states to live in 2025.

References

Council for Community and Economic Research. (2022). Cost of Living Index. Tax Foundation. (2022). State and Local Sales Tax Rates. Note: The cost of living index scores and median home prices listed are subject to change and may not reflect the current market. It's essential to research and visit each state before making a decision.