When figuring out the best place to live, there’s a lot to consider: Growing families might weigh the benefits of small-town life versus big-city living. Older Americans often consider the best and worst states for retirees. And countless homebuyers share a major concern: What are the most affordable states to live in?
According to 2023 data from the Bureau of Labor Statistics, housing expenses account for 32.9% of all expenditures, an increase of 4.7% from the previous year. Housing costs vary widely across the United States, and while many people assume those costs are proportionate to earnings, that’s not always the case. Take, for example, a median-priced home in Hawaii, which eats up 75% of the average take-home pay. In the most affordable state, the script is flipped: Residents keep 76.6% of their take-home payeven after paying their mortgage, taxes and maintenance costs.
If you have ever loaded up the car with gas and snacks for a scenic road trip across the country, you’ve probably noticed some of the iconic signs that welcome you to each state. You may even look forward to spotting one if you’re a restless passenger. Air travel has seemed to become the default, but on a plane, you don’t have the ability to witness these quirky landmarks. Beware: the following images may inspire a road trip.
Home-warranty company Cinch Home Services crunched some numbers to help Americans identify where they can get more house for their money and retain the majority of their wages. Because let’s face it: For many people, the best states to live in are the most affordable states to live in.
How did the study determine the most affordable states to live in?
Cinch Home Services calculated the annual mortgage payment on the median-priced home in every state. From there, Cinch’s experts factored in additional housing costs, such as property taxes and home-maintenance fees.
Which state is the most affordable?
West Virginia may have the lowest take-home pay of all 50 statesa whopping 27.4% below the national averagebut as the Cinch Home Services analysis concluded, it also has the lowest housing costs in the country. That makes the Mountain State the most affordable in the nation.
West Virginians’ total housing expenses average only $14,506. “The average household retains 76.6% of their take-home pay, which translates to a substantial $47,500 left,” the report states.
For context, consider housing costs in Hawaii: Hawaiians have an average annual take-home pay of $86,376, nearly six times that of West Virginians. But their housing expenses average $65,185 and gobble up more than 75% of their income. Because of the cost of getting supplies to the islands, maintenance costs are also higher in Hawaii than in the contiguous United States.
Why is West Virginia the most affordable state to live in?
West Virginia State Capitol In Charleston West Virginia
Cinch Home Services leveled the playing field by using the national average of $2,458 when factoring in yearly maintenance costs. (Of course, we know that number differs from state to state. Remember, it’s higher in Hawaii.) From there, the experts considered other variablesmortgage payments and property taxesthat vary significantly from one state to another.
Affordable mortgages
The annual mortgage for a median-priced home in West Virginia is only $11,160. That’s over $1,000 less than the average mortgage in Mississippi, the second most affordable state. And it’s in stark contrast to the $60,048 mortgage for a median-priced home in Hawaii.
Low property taxes
In addition to affordable mortgages, West Virginia boasts reasonable property taxes, with an average cost of $888 per year.
Compare that with Missouri. In the study of the most affordable states to live in, it came in at No. 7 and has the second-lowest property tax in the country: For a median-priced home, the average property tax is $893. Yet a mortgage in that state will run you $16,008.
What other states rounded out the top five?
West Virginia’s total yearly housing expenses are $14,506, but seven states have housing expenses under $20,000, and five barely break $18,000 per year.
Here are the five most affordable states to live in, plus their total annual housing expenses:
- West Virginia: $14,506
- Mississippi: $15,987
- Louisiana: $17,944
- Arkansas: $18,052
- Oklahoma: $18,485
Which states are the most expensive?
The pendulum swings hard to the other end of the spectrum, with mortgages in our country’s most expensive states equivalent to a whole salary in other states. You may be thinking, Well, wages must be higher in those states, but one thing all five of the most expensive states have in common is that housing costs represent at least 50% of residents’ take-home pay.
Here are the five most expensive states to live in, plus their total annual housing expenses:
- Hawaii: $65,185
- California: $61,337
- Massachusetts: $51,316
- Washington: $48,881
- New Jersey: $48,002
If you want to own your own home but are feeling the pinch, you’re not alone. Many Americans are struggling in this housing market, regardless of where they live. “The dream of owning a home is a cornerstone of the American identity,” a spokesperson for Cinch Home Services said. “However, for many, that dream is fading. In places like Hawaii, skyrocketing housing costs devour over 75% of a paycheck, forcing residents to choose between a roof and basic necessities. This isn’t an isolated issueit’s a national problem.”
That said, when cost is your No. 1 priority, it helps to know which are the most affordable states to live in. If you’re able to move, you may be able to keep more of your paycheck in the bank. So browse this list for a starting point, then narrow your choice down based on employment opportunities, quality of life and even places where the neighbors are the nicest.
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