West Virginia ranks as 2nd lowest cost of living in the United States

For sale by owner sign is displayed outside home in Northbrook, Ill., Wednesday, Sept. 21, 2022. Average long-term U.S. mortgage rates rose this week for …

For sale by owner sign is displayed outside home in Northbrook, Ill., Wednesday, Sept. 21, 2022. Average long-term U.S. mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession, mortgage buyer Freddie Mac reported Thursday, Sept. 29, 2022. (AP Photo/Nam Y. Huh)

by: Harper Emch

Posted: Feb 28, 2023 / 04:46 PM EST

Updated: Feb 28, 2023 / 04:46 PM EST

CHARLESTON, WV (WVNS) – Everyone is feeling the effects of inflation, coupled with lay-offs and an unforgiving housing market.

Overall, it’s expensive to live.

The latest ConsumerAffairs survey revealed cost of living is so high in some areas, one-third of Americans would consider moving to a different state to escape it.

But what states would provide the most relief for residential costs? The ConsumerAffairs data team evaluated housing and rental costs; utility, food, and gas prices; and tax rates to find the lowest and highest cost of living in the U.S.

West Virginia ranked #2 for the lowest cost of living in the United States

The top 10 states with the lowest cost of living are as follows:

North Dakota
West Virginia
Michigan
Louisiana
Ohio
South Dakota
Missouri
Kentucky
Oklahoma
Arkansas

North Dakota

Low-cost housing, groceries, gas and utilities made North Dakota into the top spot.

Its status as one of the nation’s leading crude oil producers helps keep gasoline and home utility prices low.
State and local taxes are also low, ranking ninth-best in the nation.
Out-of-pocket health care costs may be a sticking point, however — they make up about 20% of per-capita consumption expenses.

West Virginia

In second place, West Virginia is a housing haven.

It has the lowest median prices for both homebuying and renting; both cost roughly one-fourth as much as in Hawaii, the highest-price state.
It also ranks in the top five nationally for its low state and local tax burden.

However,

West Virginia’s grocery prices are steep compared to the other top states.
Its health care score is second-lowest in the nation, reflecting high premiums for employer insurance.

Michigan

Michigan has the country’s most affordable health care, judging from its low premiums on job-based insurance.

General health care-related expenses make up 16.1% of Michiganders’ monthly outlays, slightly less than the national average of 16.25%.
Housing costs are low (but so is supply now — the market has become competitive).
Plus a better-than-average state and local tax burden (8.6% versus a national average of 10.58%).

To determine which states have the lowest cost of living, the ConsumerAffairs Research Team looked at six main cost factors: housing, taxes, groceries, out-of-pocket health care expenditures, gas and home utilities. Each factor was indexed against the maximum value among all 50 states and assigned a weight. States with the lowest scores have the lowest cost of living. Here is an in-depth look at the factors split apart.