Would you want to relocate to a cheaper place?
As consumer prices roar, many Americans are packing their bags and heading to places where they can stretch their money further. But where to?
Moving company United Van Lines released its latest report, which is based on the data provided by the Unigroup network (parent company of United Van Lines) showing the household moves handled by the company in the 48 contiguous states and Washington, D.C.
They observed that, although fewer Americans relocated in 2023 compared to 2022, affordability is still a key factor for some residents moving out of state. According to experts, people are heading to more affordable, lower-density areas across the nation. Among the reasons for this decision is economic uncertainty, coupled with a lack of affordable housing and an increased cost of living.
People who relocate to a cheaper place move to states that have a cost of living that is comfortably lower than the national average. If you’re thinking of doing the same, you may want to consider the following states!
1. Georgia
With an estimated state population of 11 million (as of 2023), Georgia had an overall cost-of-living index of 91 in the third quarter of 2023. This cost of living is about 9% lower than the national average, making Georgia a good bet if you want to relocate to a cheaper place.
Its health care cost was 99.5, and its grocery cost index was 97.5. Georgia’s utility cost index was 88.3 and its housing cost was 77.8. The Tax Foundation ranked the state as the eighth most tax-friendly place in the country due to Georgia’s state and local tax burden of 8.9%, which is lower than any other state on this list.
About 5% of those who moved to Georgia in 2023 cited better living costs as their main reason for the decision. So, if you want to relocate to a cheaper place within the US, Georgia is a great option.
2. New Mexico
According to the Missouri Economic Research and Information Center, New Mexico’s overall cost-of-living index was 93.9 in the third quarter of 2023, which is lower than the national average of 100. With an estimated population of 2.1 million, New Mexico has a healthcare cost index of 98.4, while its housing cost is 87, making it a great option if you want to relocate to a cheaper place.
But not only are the major living costs in New Mexico below the national average, but its state and local tax burdens are also lower than half the country. According to a Tax Foundation analysis of property, income, and sales taxes, New Mexico had a tax burden of 10.2% in 2022.
3. Utah
If you want to relocate to a cheaper place in 2024, you should add Utah to your list of options. While the state’s overall cost of living index of 104.5 was actually about 4.5% higher than the national average (the data is for the third quarter of 2023) and its housing cost index was 113.6, the utilities index was below the national average (91.5). The same thing applies to Utah’s healthcare cost index of 91.5 and its grocery costs of 99.7.
According to the Tax Foundation, Utah ranked 40th out of the 50 states, with a state and local tax burden of 12.1% as of 2022. This means that, unfortunately, taxes in Utah are more burdensome than in most other states. So, if you want to relocate to a cheaper place, you may want to know this. Sill, Utah remains a good option.
United Van Lines points out that Utah was a “balanced” state in 2023, as the number of outbound and inbound movers was about the same.
4. Louisiana
Another option you should consider if you want to relocate to a cheaper place in Louisiana. Its overall cost of living ranked 10th in the country in the third quarter of 2023, with an index of 90.7. This is lower than the national average of 100.
With an estimated state population of 4.5 million, Louisiana’s utility cost index was 83 and its housing cost index was 80.5, both comfortably lower than average. The state’s grocery cost index was 94.2, and its healthcare cost index was a bit higher at 99.3.
Its state and local tax burden placed Louisiana at the 12-lowest spot in the US in 2022, with a rate of 9.1%.
Read on to discover other options if you want to relocate to a cheaper place!
5. Arkansas
With an estimated state population of 3 million, Arkansas had an overall comfortable cost of living, with an index of 88.5 in the first quarter of 2023. This places Arkansas in the 7th spot among the cheapest states in the country.
When it comes to utilities, its cost index was 91.5. The state’s housing cost index was 73.4, about 26% lower than the national average, making it one of the best options if you want to relocate to a cheaper place.
Arkansas’ health care cost index was 85.8, and its grocery cost index was 94.8. As far as the state and local tax burden go, Louisiana was the 12th-lowest in the country in 2022, with a rate of 9.1%.
6. Nebraska
In 2023’s third quarter, Nebraska had a cost-of-living index of 91. The state’s housing cost index was 78.1—a whopping 21.9% lower than the national average—and the utility cost index was 87.8. Its healthcare cost index was 99.7, and its grocery cost index was 95.6.
Nebraska may be a good choice if you want to relocate to a cheaper place (the state’s cost of living ranks 12th in the nation), but you should know that its state and local taxes were 11.5%, ranking 38th in 2022.
Living a frugal life isn’t always easy, but you can try to see what works best for you. Here’s a book that can help you reach your financial goals while also enjoying your life.
7. Iowa
With an estimated state population of 3.2 million, Iowa had an overall cost-of-living index of 89.9 in 2023’s third quarter. That would be the eighth-lowest in the US. Its utility cost index was 95.7, and its housing cost index was 72.6. The state’s grocery cost index was 96.3, and its healthcare cost index was slightly above the national average at 101.4.
In 2022, Iowa’s state and local tax burden ranked 34 out of 50 states, at 11.2%. About 6% of those who moved here in 2023 cited better living costs as their main reason for the decision. So, if you want to relocate to a cheaper place within the US, Iowa may be a good option.
8. Tennessee
Tennessee’s overall cost-of-living index was 90.4 in the third quarter of 2023. Both its housing and utilities cost indexes were significantly lower than the national average: the former was 82.2 and the latter was 93.
But that’s not all; Tennessee is also one of the most tax-friendly states in the country, making it a good bet if you want to relocate to a cheaper place. Its 2022 state and local tax burden was the third-lowest in the nation—7.6%. Moreover, many of its counties boast some of the lowest property taxes in the US, and the state has no earned-income taxes.
Similar to Iowa, about 6% of those who moved here in 2023 cited better living costs as their main reason for the decision.
9. Alabama
Alabama had an overall cost-of-living index of 88.2 in the first quarter of 2023, the fifth-best in the US and the lowest of any state on this list. In other words, it’s a pretty good option if you want to relocate to a cheaper place.
Alabama’s housing cost index was 70.5 and its utilities were 101.8, which indicates that housing costs here are 29.5% lower than the national average and utilities costs are about 1.8% higher. The state’s healthcare cost index was 85.8, and its grocery cost index was 95.8.
In 2022, Alabama had a state and local tax burden of 9.8%, which puts the state at 20th in the country for those types of taxes—close to the middle of the pack. This makes Alabama a good option if you want to relocate to a cheaper place. However, unlike Tennessee, only a few Alabama counties have some of the lowest property taxes in the US.
10. South Carolina
With an estimated state population of 5.3 million, South Carolina had an overall cost-of-living index of 94.3 in the third quarter of 2023, the 22nd-lowest in the US.
While its utility cost index was 112, 12% higher than the national average, its housing cost index had an exceptionally low index of 80.7. Its healthcare costs had an index of 91.8, and grocery costs had an index of 98.
In 2022, South Carolina’s state and local tax burden was 8.9%, putting it in 9th place.
If you liked our article on where to relocate to a cheaper place, you may also want to read 10 Frugal Tips That Will Make You Rich in the Long Run.
