Oklahoma Beats Every Other State As The Cheapest Place To Live At 16% Below Average While West Virginia Has The Lowest Home Prices At $260,000

Ever stared at your rent and thought, I could live somewhere way cheaper than this? A lot of us have. In a nine minute countdown called The Best States to Move to If You Want Lower Costs, the Real Estate The Ramsey Way channel ranks the 16 cheapest states to live in. The percentages come from the Council for Community and Economic Research, and the list is updated regularly.

Cheapest states countdown cover beside a stock photo of a quiet street of suburban homes.

The winner is Oklahoma, at about 16% below the national average on cost of living, further below than any other state. And there is a housing twist: the lowest home prices on the list are not in Oklahoma at all. They are in West Virginia, where the median home price is about $260,000.

Number One: Oklahoma

Oklahoma takes the top spot. You will pay about $300,000 for the typical home, and rent is a little over $1,000 a month. Mississippi lands at number two, about 14 percent below the national average, with homes selling for about $295,000 and a median income of about $56,000, the lowest of all 16 states. Alabama is number three at about 13 percent below, with rent around $950 a month.

The Middle Of The Pack

West Virginia comes in at number four, and that $260,000 median home price is the lowest on the list. Kansas is number five, with a typical home around $295,000 and a median income of about $74,000. From number five up, the video says every state is about 12 percent or more below the national average.

Missouri is number six and Iowa is number seven, both about 11 percent below. Iowa’s median home price is about $285,000, the second lowest of the 16. Arkansas is number eight, about 10 percent below, and it has the lowest rent on the list at about $900 a month. The video calls it the diamond digging state.

Tennessee takes number nine, about 10 percent below average, and it is the housing exception. Its median home price is about $435,000, which is higher than the national number of about $425,000, but overall it is still cheaper to live there.

The Lower Half Of The Countdown

North Dakota (10): about 9 percent below, with unemployment just over 2 percent.
Indiana (11): about 9 percent below, with a median home price of about $300,000 against the national $425,000.
Texas (12): about 9 percent below, and it has the highest median income of all 16 at about $78,000.
Nebraska (13): about 9 percent below, with unemployment about 3 percent.
Georgia (14): about 8 percent below, with a median income of about $77,000 compared with about $80,000 nationally. The video notes that Atlanta proper costs a lot more than a small town two hours out.
New Mexico (15): about 8 percent below, but it has the highest unemployment on the list at almost 5 percent, so look closely at the local job market.
South Dakota (16): about 8 percent below, with no state income tax and unemployment of only 2 percent, the lowest on the list.

Before You Pick A Moving Date

The video closes with a warning that is worth more than the ranking itself. A state average can be misleading, because big cities are often way more expensive than rural areas in the same state. Look at the exact city and zip code you have in mind, not just the state name.

Cost of living is also just one piece of the puzzle. The hosts say to weigh the job market, how close you will be to family, schools, quality of life and weather. A state that is 16 percent cheaper does not help if you are three states away from your grandchildren.

A Moving Checklist For Savers

Pick a specific town. Compare real rents and home prices in that town, not the state average.
Check the job market. Note the examples above: unemployment on this list ranged from about 2 percent to almost 5 percent.
Think about your people. Family, friends and doctors are worth more than a few percentage points.
Visit first. Spend a week there, ideally in a season you would not normally pick.
Start a sinking fund. If a move becomes the plan, the hosts suggest setting aside money for movers, deposits and travel.

What The List Really Tells Us

Notice that cheap does not mean the same thing everywhere. Oklahoma wins on overall cost of living. West Virginia wins on home prices. Arkansas wins on rent. Mississippi has the lowest incomes of the group. Tennessee is cheaper overall even though its median home price tops the national number. A retiree with a paid off house will care about different numbers than a young family hunting for a first home.

The spread inside the list is wide. Median home prices run from about $260,000 in West Virginia to about $435,000 in Tennessee, against a national figure of about $425,000. Rent runs from about $900 a month in Arkansas to a little over $1,000 in Oklahoma, with Alabama near $950.

That is why the best use of a list like this is as a starting point. Pick two or three states that catch your eye, then dig into the towns inside them.

Willow and Hearth