Americans continue to grapple with the cost of living, feeling the pressure from stubbornly high grocery prices, rent, and energy bills. But there are ten states where they’re more likely to get more bang for their buck, according to analysis
Prices rose by 4.2 percent over the previous 12 months, according to Bureau of Labor Statistics figures for May.The data found that the increase was driven by the spike in energy costs driven by the U.S. and Israel’s war in Iran
Federal Reserve Chairman Kevin Warsh, appointed by President Donald Trump, acknowledged the problem last month. “Persistently high prices are a burden for the American people,” he said, while the president declared, “I love the inflation.”
The good news is that financial pressure varies state by state which compiled a list of the ten states that offer the cheapest living
The analysis looked at the average cost of rent, home insurance, and groceries to grade different states on their affordability. Here’s what the results showed
Missouri – Cheaper groceries but expensive home insurance
The average rent for a three-bedroom home in Missouri last year was just $1,582, which is the fifth-lowest in the U.S. as a percentage of median income
The average home price in Springfield, Missouri is $478,702, versus the national average home price of $540,600
Groceries are also cheaper — a head of lettuce in Joplin costs 12 percent less than in New York City
Unfortunately, due to the severe storms that affect some parts of Missouri, the cost of insurance is high — the 13th highest in the nation
Missouri scored a B+ on CNBC’s 2026 Cost of Living score
Ohio – Affordable business costs
The Buckeye State offers not only some of the nation’s lowest cost of living, but also the lowest cost of doing business. CNBC named Ohio it’s top state for business overall in 2026 as a result
The average home price in Cleveland is approximately a third of what someone might spend on a home in Boston, according to the report. The average rent is also the fourth-lowest in the U.S. as compared to a percentage of the average American’s median income
In Cleveland, the average home price is approximately $388,116, and an Ohioan can expect to spend approximately $188.39 on their monthly energy bill, sans unusual use
Ohio scored an A- on CNBC’s 2026 Cost of Living score
Kansas – Low housing costs
Housing costs in Kansas are the third-lowest in the U.S., where an average home in Salina costs approximately $348,000
Like Missouri, insurance costs are on the rise in Kansas due to severe weather events causing property damage. Homeowners’ insurance premiums were the 10th-highest in the U.S. last year, and they’re expected to increase by another 4 percent this year
The average rent for a 3-bedroom home in Kansas is approximately $1,538
Kansas scored an A- on CNBC’s 2026 Cost of Living score
Iowa – Second lowest rents in the country
Rents in Iowa are the second-lowest in the country after Michigan, but buying may be an even better option for those moving to the Hawkeye State. Housing in Iowa is among the most affordable in the U.S., with the average home price in Burlington running around $331,200
The average rent for a 3-bedroom home is $1,580
The only major drawback for Iowa is the same that plagues many other Great Plains and Midwest states; high insurance premiums due to severe weather
Iowa scored an A- on CNBC’s 2026 Cost of Living score
Indiana – Low gas prices
The average home price in Kokomo, Indiana is only $293,267, and the rent for a 3-bedroom home is approximately $1,711
Indiana also has the benefit of regularly having fairly low fuel prices. Even during the onset of the war in Iran, gas in Richmond, Indiana could be purchased for $2.82 per gallon, according to data from C2ER
Some services are cheaper in Indiana than other places in the U.S. — balancing one’s tires in Kokomo will cost approximately half of what it might in Conway, Arkansas
Indiana scored an A- on CNBC’s 2026 Cost of Living score
Wyoming – Reasonable rent and affordable insurance premiums
Despite being in the path of severe weather, Wyoming has managed to keep homeowners’ insurance premiums low at $1,929 per year, making it the 16th lowest in the U.S
Prospective Wyoming residents can rent an apartment in Laramie for approximately a third of what it might cost in Arlington, Virginia
The average home price in Laramie is $449,444, and the average rent for a 3-bedroom home is around $1,791
Wyoming scored an A- on CNBC’s 2026 Cost of Living score
South Dakota – Rent among cheapest in the country
Homeowners in South Dakota have the fourth-lowest monthly payments in the U.S
Prospective buyers can purchase a home in Pierre for approximately a 25 percent less than what it would cost them in Miami. Rental costs are also low and sit within the top 10 cheapest in the nation
Insurance premiums for homeowners are in the middle of the pack nationally, and are projected to rise only 1 percent this year
South Dakota scored an A on CNBC’s Cost of Living score
Alabama – Among the best for lower grocery prices
Rent in Alabama is the 10th lowest in the U.S. as a percentage of one’s median income
The average home price in Anniston is $284,340, and the average rent for a 3-bedroom apartment is $1,532
Grocery prices are also lower compared to other parts of the country. A pound of bananas is 20 percent cheaper in Decatur than in Orange County, California, according to the report
Alabama scored an A on CNBC’s Cost of Living score
North Dakota – Some of the cheapest homes in the US
North Dakota has some of the cheapest home prices in the U.S
A new-built, four-bedroom home in Bismarck will cost prospective buyers about half of what it would cost them for the same home in Bozeman, Montana
The average home price in Bismarck is $378,598, and the average rent for a 3-bedroom home is $1908
North Dakota scored an A+ on CNBC’s Cost of Living score
West Virginia: The best state for escaping inflation
At the top of CNBC’s list is West Virginia, where nearly 81 percent of the population pays less than a third of their monthly income on their housing
West Virginia also has some of the lowest homeowners’ insurance premiums in the U.S
A home in Charleston costs approximately $274,429, and the average rent of a 3-bedroom home is $1,726
Those hoping to drive the state’s country roads are also in luck, as filling up a car costs about half what it might cost in Los Angeles
West Virginia scored an A+ on CNBC’s Cost of Living score
