These are America's cheapest states in 2025, winning battle against inflation
Key Takeaways
Cost of living continues to be a major issue for consumers, but some states are handling inflation better than others: America's cheapest states to live in.
Article Overview
Quick insights and key information
10 min read
Estimated completion
real estate
Article classification
July 11, 2025
03:18 PM
CNBC
Original publisher
Inflation may have fallen, but the cost of living is still a major concern for people across the country, and the companies that look to employ them
CNBC considers Cost of Living among ten of competitiveness in the annual America’s Top States for rankings
In addition to the costs for basic goods and services, the CNBC study considers housing and insurance costs
Inflation has fallen considerably, but it is still too high for Federal Reserve policymakers' tastes
And tariffs make the calculation even more complicated. "We've had goods inflation just moving up a bit," said Fed Chairman Jerome Powell at a news conference last month. "We do expect to see more of that over the course of the summer
It takes some time for tariffs to work their way through the chain of distribution to the end consumer. " CNBC considers Cost of Living among ten of competitiveness in our annual America's Top States for rankings
Companies seeking to attract as many workers as they can — and reduce their own wage costs — to locate in places that are affordable
So, we rate the states based on an index of prices for a broad range of goods and services calculated by the Council for Community and Economic Re, C2ER
We also consider housing affordability
And, with an insurance crisis spreading across the country, we measure the cost to insure a median priced based on the most recent available data
Under this year's methodology, Cost of Living is worth 2. 4% of each state's total score
Some states remain very expensive for residents
Others are doing a fair job in the fight to keep costs down
Based on the 2025 Cost of Living category points totals — which results in some tie scores between states, though only one that can be called the nation's "least expensive" — here are America's cheapest states to in, along with average prices in 2024 of some basic items in key metro areas
MichiganKalamazoo, Michigan
Sean Pavone | Istock | Getty ImagesShocked at the price of eggs
Head to Kalamazoo, where you'll pay around 20% less per dozen than they are paying in Newark, New Jersey (prices in this list were compiled last year, before egg prices began rising again, but the difference remains the same)
And the cost of a new in Michigan is less than half what they are paying in New Jersey. 2025 Cost of Living Score: 39 out of 60 points (Top States Grade: B–)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $3,290Average Price (Kalamazoo): $298,697Dozen Eggs (2024): $2. 99Monthly Energy Bill: $203. 46IowaThis winding country road in northwest Iowa
Darcymaulsby | Istock | Getty ImagesThe Hawkeye State has field advantage when it comes to corn, which will cost you 16% less at the supermarket than they are paying in Washington, D
Speaking of, housing prices in Iowa are among the most affordable in the nation
But one thing that is becoming less affordable is insurance
Online insurance marketplace Insurify jects that the average Iowa owner will pay $3,825 for insurance this year, a 19% jump from last year
Premiums have been rising since the 2020 derecho, a massive wind storm that destroyed some 8,000 s and did millions of dollars in damage
A parade of severe weather has ed, bringing higher premiums along with it. 2025 Cost of Living Score: 39 out of 60 points (Top States Grade: B–)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $3,825Average Price (Burlington): $320,694Dozen Eggs (2024): $3. 24Monthly Energy Bill: $215. 83DelawareWilmington, DelawareHalbergman | Istock | Getty ImagesDespite its coastal location, The First State has managed to dodge the insurance crisis, at least so far
Premiums in Delaware are one-tenth of what they are in Florida
It helps that the state has managed to avoid natural disasters in recent years, and that the population is relatively sparse
Housing costs in general are reasonable for most owners and renters in Delaware
According to Census data, only 26% of them are spending more than one-third of their household income on housing
In California, that number is more than 39%. 2025 Cost of Living Score: 39 out of 60 points (Top States Grade: B–)Consumer Price Index (May, South Region): +2%Annual owner's Insurance: $1,693Average Price (Dover): $370,378Dozen Eggs (2024): $3. 20Monthly Energy Bill: $199. 31WyomingOld House with the Tetons Mountains in the background at Mormon RowJose A Feliciano Cestero | Istock | Getty ImagesThe Cowboy State has managed to rein in housing and insurance costs
Seventy-five percent of Wyoming owners and renters pay less than 30% of their household income on housing
Insurance premiums are jected to rise by 7% this year, but that is less than the average increase nationwide of around 8
Prices are running 17% less than in neighboring Montana. 2025 Cost of Living Score: 41 out of 60 points (Top States Grade: B)Consumer Price Index (May, West Region): +2. 4%Annual owner's Insurance: $2,424Average Price (Laramie): $426,326Dozen Eggs (2024): $2. 98Monthly Energy Bill: $172. 82OhioResidential District in Cincinnati area, OhioPosnov | Moment | Getty ImagesThe Buckeye State is also bucking some of the national trends on housing and insurance costs
At $268,600 statewide, according to Redfin, Ohio's median sale price is among the lowest in the country, and well below the national median of $441,738 in May
It will cost you roughly half what it would in Minnesota to insure a typical
And everyday staples are more affordable in Ohio as well
A loaf of bread in Youngstown is 15% cheaper than it is in Portland, Oregon. 2025 Cost of Living Score: 41 out of 60 points (Top States Grade: B)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $2,006Average Price (Cleveland): $391,639Dozen Eggs (2024): $3. 24Monthly Energy Bill: $161. 82AlabamaHuntsville, AlabamaDavel5957 | E+ | Getty ImagesGot a hankering for some Southern fried chicken
Here in The Heart of Dixie, a whole fryer will cost you a little more than half what you would pay in Oakland, California
A house in booming Huntsville will cost you one-third what a similar would cost in Lake Havasu City, Arizona
But this state's Gulf Coast location means that owners insurance costs are starting to eat into household budgets
Premiums in Alabama are the sixth highest in the nation. 2025 Cost of Living Score: 43 out of 60 points (Top States Grade: B+)Consumer Price Index (May, South Region): +2%Annual owner's Insurance: $5,831Average Price (Huntsville): $361,221Dozen Eggs (2024): $3. 35Monthly Energy Bill: $172. 74North DakotaAn aerial view of a large public university in Fargo, North DakotaWirestock | Istock | Getty ImagesHousing costs are easily manageable in The Peace Garden State
Three out of five owners and renters are paying less than 30% of their household income on housing costs
North Dakota overall does well on housing affordability, but the market is tight in spots
Before leaving office this year and joining the Trump administration as Interior Secretary, Gov
Doug Burgum unveiled a comprehensive housing strategy, developed by a state Housing Initiative Advisory Committee, aimed at bringing the housing market into better balance
The plan includes reductions in red tape to spur development, financing assistance, local housing grants, and grants to local school districts to train the next generation of construction workers. "If we want to continue to attract and retain workers and grow our economy, we need to reduce barriers to workforce participation such as housing," Burgum said in November. 2025 Cost of Living Score: 45 out of 60 points (Top States Grade: B+)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $3,931Average Price (Fargo): $390,066Dozen Eggs (2024): $3. 12Monthly Energy Bill: $139. 56MissouriKansas City, Missouri cityscape skyline as night falls over downtownCrackerclips | Istock | Getty ImagesShow me a good time in Kansas City — say, a ticket to a movie — and I'll show you a 25% savings over what it would cost you in Philadelphia
Life is easy on the wallet in The Show Me State
Go out for a burger after the movie in Missouri, and you'll another 25% versus what you would pay in Baltimore
But, as in other states in the region, you may find yourself spending a chunk of those savings on the rising cost of your owner's insurance. 2025 Cost of Living Score: 45 out of 60 points (Top States Grade: B+)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $3,641Average Price (Kansas City): $429,449Dozen Eggs (2024): $3. 17Monthly Energy Bill: $219. 67KansasManhattan, Kansas Denistangneyjr | Istock | Getty ImagesHead across the Missouri River into Kansas, and you will find things even more affordable in the Sunflower State
A head of lettuce is 15% cheaper in Manhattan, Kansas, than in Manhattan, New York
A two-bedroom apartment in the Midwest Manhattan will set you back a little over $1,000 per month, while you'll pay a little over $5,000 in that other Manhattan
But you will actually pay more per month for owners insurance in Kansas than you would in New York State. 2025 Cost of Living Score: 46 out of 60 points (Top States Grade: B+)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $4,782Average Price (Manhattan): $399,444Dozen Eggs (2024): $3. 04Monthly Energy Bill: $201. 23IndianaIndianapolis, IndianaNicholas Klein | Istock | Getty ImagesAt $275,700 in May, the median sales price in Indiana is 35% below the national average
Yet prices are appreciating nicely, by 4% a year
Want to get your tires balanced as you drive through The Crossroads of America
Better to do it here than next door in Illinois, where it will cost 25% more. 2025 Cost of Living Score: 46 out of 60 points (Top States Grade: B+)Consumer Price Index (May, Midwest Region): +2. 4%Annual owner's Insurance: $2,766Average Price (Indianapolis): $360,369Dozen Eggs (2024): $3. 40Monthly Energy Bill: $169. 582025's Least Expensive State: West VirginiaResidential street in downtown Charleston, West Virginia
Benedek | E+ | Getty ImagesYour money goes further in The Mountain State than in any other state
At the end of 2024, West Virginia's composite Cost of Living Index as measured by C2ER was 84. 1, less than half the number for the most expensive state, Hawaii, at 186
Fewer than 20% of West Virginians are paying more than one-third of their monthly income for housing
But even here, there are worries a housing shortage, particularly for low-income residents
The National Low Income Housing Coalition found earlier this year that the state needs 25,000 more affordable housing units
The group says that for every 100 low-income households, only 58 rental s are available
Part of the issue: an increasing number of units are short-term rentals, blocking full-time residents out of the market. 2025 Cost of Living Score: 58 out of 60 points (Top States Grade: A+)Consumer Price Index (May, South Region): +2%Annual owner's Insurance: $1,744Average Price (Charleston): $266,797Dozen Eggs (2024): $3. 50Monthly Energy Bill: $198. 12 America's Top States for 2025: The full rankingsScott Cohnan hour agoNorth Carolina is America's Top State for in 2025, led by a strong workforce and economy Scott Cohnan hour agoMassachusetts is 2025’s Most Imved State for boosted by financial independence from D
Scott Cohnan hour agoRead More.
Related Articles
More insights from FinancialBooklet