North American Van Lines, a moving company, recently conducted a study to determine the cheapest states to live in in 2023 in the United States, with New Hampshire, South Dakota and Tennessee leading the way with the best results.
“Inflation is now at its highest level in 40 years, as Americans across the country are seeking more affordable options for housing and the overall cost of living,” said Kevin Murphy, North American vice president and general manager. Van Lines. “Because of this, we decided to compile this list to help people find the most affordable places to live in the United States.”
The results of the study showed that the 10 cheapest states to live are:
1.New Hampshire
2.South Dakota
3.Tennessee
4. Alaska
5.Texas
6.Wyoming
7. Florida
8.Washington
9. Snowfall
10. North Dakota
The report indicates that the states chosen as the cheapest states offer a high quality of life at a low price.
To determine the most profitable states to live in, the moving company took into account the following factors:
– Median Household Income
– Median home price
– Mortgage with 20% down payment at 7.47%
– Average Rent
– Calculated median cost of housing
– Average grocery costs
– Average profits
– Inflation costs
– Cost of state income tax
– State income tax rates
These factors were used to determine an index score for each state in the United States, where New Hampshire received the lowest score, meaning it has the lowest cost of living.
The study was able to identify which states are great choices for Americans looking to further stretch their current budgets by organizing all 50 states into a ranked list that determines affordability (see here).
The median cost of housing was calculated assuming 65.4% home ownership vs. 34.6% rental, according to the Census Bureau’s Housing Vacancy Survey (CPS/HVS). Mortgage payments were calculated at a 7.47% interest rate with a 20% down payment, using the median home price in each state.
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