The cost of living is getting higher every year that passes. Rising costs due to inflation make it difficult to build a profit in many areas of the country. Many people struggle to settle down because they simply can’t afford to live comfortably. Taking a look at the whole country, which state is the most affordable?
How to Rank Affordability
Determining affordability takes many factors into account. For one, the costs of daily life such as groceries is examined. It also looks at the cost of house prices and rent, which vary significantly between each region. Finally, the affordability also considers the median family income. The higher the cost of living, the less likely that the average household will be able to live there.
The Most Affordable State
Mississippi was the most affordable state in the country in 2019. Mississippi has two nicknames; the Magnolia State and the Hospitality State. Mississippi has some of the cheapest housing in the country, receiving top marks when citizens were surveyed. As well, buying a steak in Jackson, Mississippi will cost about $10, which is half the price of buying one in New York. The average cost of buying a home in Mississippi is $275,509 on average. The cost of a half-gallon of milk is $2.90. The cost of a household’s monthly energy bill is close to $130, and the cost of visiting a doctor is about $90.
Iowa is another very affordable state. The median household income is $58,570, and the average house price is $314,988. The house is considered to be a four-bedroom, 2,400 sq. home. The price of one pound of ground beef is $3.66, the cost of a half-gallon of milk is $2.03 and the cost of a dozen eggs is $1.46.
Trying to find a place to live in Iowa will not set you back very much. Rent for a bachelor or 1-bedroom apartment can easily be under $1,000 per month. Urban areas near cities and local amenities tend to be much more expensive than rural locations. In rural areas, fixer-upper houses can sell for around $100,000.
Iowa is a great state for businesses to establish themselves because the cost of living is low. This means that they can pay their workers close to minimum wage as they get their business off the ground.
The Least Affordable State
Unsurprisingly, Hawaii is the least affordable state in the country. It is a tropical paradise, and Americans pay a premium to live there. Visitors to Hawaii will spend thousands and thousands of dollars on just a week-long vacation by the beach. Buying a home in Hawaii will cost $1 million on average. If you are looking to rent a place, it will cost close to $3,000 monthly for a 2-bedroom place. On average, the monthly energy bill will be around $450 per month, very high compared to other states.