The average cost of living by state across the country is quite a mixed bag. From the lowest cost of living states to those with sky-high expenses, we compiled information to help you plan a move. So whether you're on a tight budget or ready to build your dream home, explore the cost of living each state requires to find the best fit for your new life.

Summary:

• Cost of Living by State A–Z

• Lowest Living Cost States

• Highest Living Cost States

• Affordable New Construction Homes by State 

• Conclusion

Cost of Living by State A–Z

Discover the actual cost of living in dream destinations like Hawaii and California or living expenses in the Midwest. Our cost of living comparison state by state offers helpful details for choosing a new place to call home. Using the trusted Missouri Economic Research and Information Center (MERIC) Cost of Living Index by state for the third quarter of 2024, we evaluated the affordability of each one so you can make an informed decision. Uncover the average cost of living per state, alphabetically arranged for your convenience.

Alabama

Cost of Living Index: 88.8

Average Cost of New Construction: $291,397 (TodaysHomeowner.com®, September 2024)

Alabama kicks off our list as one of the states with the lowest cost of living, specifically 12% lower than the national average, according to RentCafe® as of September 2024. Zillow® estimates the state's average home value is in the low $225Ks as of November 2024. Move.org, in November 2024, states that utility costs in Alabama are roughly $575 per month, which includes energy, water, internet, natural gas, and phone. Additionally, Move.org finds that Alabama's monthly grocery and food costs average $421 per person. Childcare in 2024 runs roughly $7,280 annually for one child, per World Population Review. As for taxes, the Tax Foundation reports that the state’s graduated income tax in 2024 runs from 2% to 5% (with local income tax levied in some areas), the state and local sales tax combined averages 9.29%, and the effective property tax rate is 0.36%. 

Alaska

Cost of Living Index: 123.4

Average Cost of New Construction: $348,591 (TodaysHomeowner.com, September 2024)

As of September 2024, RentCafe reports that the Alaskan cost of living is 31% higher than the national average (with their findings based on C2ER’s Cost of Living Index). The housing landscape reflects a median home value in the mid $368Ks, according to Zillow’s November 2024 data, and Move.org estimates monthly utility costs are around $556, while groceries average $480 as of November 2024. World Population Review finds annual childcare expenses averaged $10,746 in 2024. However, with no state income tax, Alaska offers an advantageous tax situation. Ranked as the state with the lowest tax burden in the U.S. by WalletHub® in April 2024, Alaska residents also benefit from a combined state and local sales tax of only 1.82% per the Tax Foundation, with an effective property tax rate of 1.07% for owner-occupied homes. 

Arizona

Cost of Living Index: 112.8

Average Cost of New Construction: $317,153 (TodaysHomeowner.com, September 2024)

According to Zillow’s November 2024 data, Arizona’s median home value is in the lower $427Ks. That surpasses the national average by 18% per RentCafe as of September 2024, while Arizona’s overall cost of living exceeds the national average by 6%. Other expenses align more closely with national averages, with utilities approximately $527 per month and groceries averaging $367 (Move.org, November 2024). Childcare averages $8,719 annually (World Population Review, 2024). Additionally, Arizona stands out for its relatively low property taxes, with a 0.45% effective property tax rate according to the Tax Foundation’s 2024 findings, which also reports the state levies a 2.5% flat-rate individual income tax and boasts an 8.38% combined state and local sales tax rate. 

See new home communities in Arizona. 

Arkansas

Cost of Living Index: 89

Average Cost of New Construction: $288,175 (TodaysHomeowner.com, September 2024)

Arkansas is one of the lowest cost of living states, at approximately 8% lower than the national average, according to RentCafe in September 2024. As of November 2024, Zillow reports that housing in Arkansas is notably affordable, with the average home value in the low $208Ks. Move.org reports utility expenses to be around $452 and grocery costs about $343 per month. Per World Population Review in 2024, the state offers relatively affordable childcare at roughly $6,575 per child annually. The Tax Foundation states the Arkansas state income tax rate ranges from 2% to 4.4% in 2024, the state and local sales tax rate averages 9.45% combined, and the effective property tax rate is 0.53%.

California

Cost of Living Index: 144.7

Average Cost of New Construction: $360,000–$760,000 (HomeGuide.com, November 2024)

California ranks 50th on MERIC’s 2024 Cost of Living Index, making it one of the most expensive states, with RentCafe finding living costs 38% higher than the 2024 national average. The state’s size also means that costs can vary greatly depending on the location. That’s why, for example, the average cost of a new construction home varies by such a wide range, and in some areas, a new build house could run as much as $1.5M. Overall, the median home price in California is $778K, reports Zillow as of November 2024, while Move.org finds utilities average $572 and groceries $458 monthly. World Population Review finds that estimated annual childcare costs for one child are approximately $12,168. California state income tax rates vary by income bracket for different filing statuses, ranging from 1% to 13.3%, with a combined state and local sales tax averaging 8.85% and an effective property tax rate of 0.68%, per the Tax Foundation. 

See new home communities in California. 

Colorado

Cost of Living Index: 102.7

Average Cost of New Construction: $330,238 (TodaysHomeowner.com, September 2024)

RentCafe finds the September 2024 cost of living in Colorado is 6% higher than the national average. The average home value is in the mid $543K, a 1% increase in the past year per Zillow’s December 2024 data. Move.org reports monthly utilities average $457, which includes energy, water, internet, natural gas, and phone, while groceries run roughly $452 per month as of November 2024. Childcare is approximately $11,911 per child per World Population Review’s 2024 data. Colorado has a flat state income tax rate of 4.4% in 2024, according to the Tax Foundation, with a state sales tax of 2.9%, a combined state and local sales tax of 7.81%, and an effective property tax rate of 0.45% for owner-occupied homes.

Connecticut

Cost of Living Index: 111.7

Average Cost of New Construction: $367,853 (TodaysHomeowner.com, September 2024)

Connecticut's cost of living is estimated to be 13% higher than the national average, according to RentCafe in September 2024. As of December 2024, Zillow reports the average home value in Connecticut is in the upper $405K range. Move.org reports monthly utility costs in the state are around $527, and average monthly grocery costs are $497 per person. World Population Review finds childcare in 2024 is roughly $13,052 per child. Connecticut state income tax rates range from 2% to 6.99% as of 2024, per the Tax Foundation, with a sales tax rate of 6.35%, no local sales taxes, and an effective property tax rate of 1.78%. 

Delaware

Cost of Living Index: 100.2

Average Cost of New Construction: $329,212 (TodaysHomeowner.com, September 2024)

Delaware's cost of living in 2024 is just 2% above the national average, per RentCafe. As of December 2024, Zillow reports the average home value in Delaware is around $383K. Move.org finds Delaware's average monthly cost for utilities in November 2024 is around $548, while the state’s residents spend an average of $527 per person monthly on groceries. World Population Review puts 2024 childcare costs at $9,579 per child. Delaware's state income tax rates range from 2% to 6.6% as of 2024, per the Tax Foundation, making it relatively competitive compared to neighboring states. Notably, Delaware does not impose a statewide sales tax on goods and services, distinguishing it as one of the five states in the U.S. without this tax. However, local taxes or fees may apply to specific goods and services in certain jurisdictions within the state. The property tax rate for owner-occupied homes, also per the Tax Foundation, is 0.48%. 

Florida

Cost of Living Index: 102.4

Average Cost of New Construction: $297,228 (TodaysHomeowner.com, September 2024)

Per RentCafe, as of 2024, the cost of living in Florida is 2% lower than the national average. Property prices in the state vary across cities, but Zillow finds average home values to be in the high $386Ks in December 2024, a drop of 1% from last year. Move.org reports 2024 utility costs are roughly $521 monthly and estimates 2024 monthly grocery costs per person are just under $435. As for childcare, the state average is $7,186 per child in 2024, according to World Population Review. Florida also has one of the lowest overall tax burdens among U.S. states, making it an attractive option for those looking to reduce their tax liability. According to the Tax Foundation, as of 2024, Florida does not impose a state income tax, which contributes to its appeal for residents seeking tax advantages, though it does have a 7% combined state and local sales tax. The effective property tax rate is 0.71%. 

See new home communities in Florida. 

Georgia

Cost of Living Index: 91.5

Average Cost of New Construction: $305,143 (TodaysHomeowner.com, September 2024)

Though many sources report Georgia is one of the fastest-growing states in the U.S., the state maintains a relatively lower cost of living, ranking as the 11th lowest in the United States, according to 2024 data from MERIC. Zillow’s December 2024 data reports the average home value in Georgia is approximately $325K. Utility costs in Georgia contribute to higher living expenses, averaging $570 per month in November 2024, according to Move.org, while grocery prices run roughly $478 per person each month. World Population Review states childcare averages $7,630 per child annually. The state’s income tax rate range is a flat 5.49% in 2024, according to the Tax Foundation, with a 4% state sales tax, a 7.38% state and local sales tax, and an effective property tax rate of 0.72%. 

See new home communities in Georgia.

Hawaii

Cost of Living Index: 184.6

Average Cost of New Construction: $431,364 (TodaysHomeowner.com, September 2024)

Hawaii has the highest cost of living index, making it the most expensive U.S. state to live in, according to MERIC’s 2024 data. As of December 2024, Zillow reports the average home value in Hawaii is a staggering $843K, one of the highest nationwide. Move.org reports that average monthly utilities as of November 2024 cost about $756, covering energy, water, internet, natural gas, phone, and streaming services, and grocery prices exceed the national average, with residents paying over $638 per person monthly. Childcare costs are also high, with World Population Review estimating them at $12,040 annually. The Tax Foundation reports that the graduated state income tax rates in 2024 range from 1.4% to 11.0%, making it one of the highest in the country, depending on your tax bracket, while the effective property tax rate for owner-occupied homes is 0.26%. Hawaii employs the General Excise Tax (GET) instead of a traditional sales tax, with a 2024 rate of 4% for most businesses selling goods and services, per the Hawaii Department of Taxation. 

Idaho

Cost of Living Index: 102

Average Cost of New Construction: $326,675 (TodaysHomeowner.com, September 2024)

Idaho, the second-fastest growing state in 2022 after Florida (per U.S. Census Bureau estimates), offers a relatively average cost of living, ranking 33rd among U.S. states, according to 2024 MERIC data. RentCafe puts the average cost of living in this state at 6% lower than the national average. Zillow reports an average home value in Idaho of $450K in December 2024. Utility costs in Idaho contribute to the overall cost of living, with Move.org reporting an average monthly cost of around $515 in November 2024. Grocery prices here, also per Move.org, are some of the lowest in the country in 2024, running roughly $371 monthly. You can expect to pay approximately $8,317 per child yearly for childcare, according to World Population Review as of 2024. Idaho's 2024 flat state income tax rate is 5.8%, per the Tax Foundation, with a 6% state sales tax (6.03 state and local combined) and an effective property tax rate of 0.47%.

Illinois

Cost of Living Index: 95.5

Average Cost of New Construction: $380,189 (TodaysHomeowner.com, September 2024)

Illinois, the sixth most populous state with over 12.5 million residents (Wisevoter, 2023), maintains a relatively average cost of living, ranking 26th among U.S. states according to 2024 data from MERIC. RentCafe puts the average cost of living at 8% below the national average as of September 2024. As of December 2024, Zillow reports the average home value in Illinois is approximately $264K. As of November 2024, Move.org reports an average monthly cost of around $408 for utilities, covering energy, water, internet, natural gas, and phone, while residents pay about $470 on average each month for groceries. Childcare is on the higher end, running $11,605 per child annually per World Population Review in 2024. When it comes to taxes, the Tax Foundation’s 2024 data finds Illinois has a flat state income tax rate of 4.95%, with a sales tax rate of 6.25%, which can vary by location and run as high as 8.86% for combined state and local sales tax, and an effective property tax rate of 1.95%. 

Indiana

Cost of Living Index: 91.3

Average Cost of New Construction: $329,607 (TodaysHomeowner.com, September 2024)

RentCafe finds Indiana offers a cost of living 8% lower than the national average. The average home in Indiana is priced in the $238K range, as indicated by Zillow's data in December 2024. Move.org reports the average monthly utility cost in Indiana is around $423 as of November 2024, and average grocery and food costs run roughly $382 per person per month. Childcare averages $9,589 annually, per World Population Review (2024). The Tax Foundation finds Indiana has a flat state income tax rate of 3.05% and imposes a 7% state sales tax rate and an effective property tax rate of 0.71% as of 2024. 

Iowa

Cost of Living Index: 90.4

Average Cost of New Construction: $324,620 (TodaysHomeowner.com, September 2024)

Iowa has one of the lowest living costs in the United States, ranking 9th from the lowest to the highest states, according to data collected in 2024 by MERIC. RentCafe reports the state’s estimated cost of living is approximately 6% lower than the national average as of September 2024. As of December 2024, the average home value in Iowa is around $215K, based on the Zillow Home Values Index. Monthly utility costs average $439, per Move.org as of November 2024, which also finds groceries average $351 monthly. World Population Review states annual childcare costs in 2024 average $9,322 annually. The Tax Foundation finds Iowa’s 2024 graduated state income tax ranges from 4.4% to 5.7%, with some areas collecting local income taxes, and the effective property tax rate is 1.4%. Also, the state imposes a 6% sales tax on purchases (6.94% state and local sales tax combined). However, the Iowa Department of Revenue states that local jurisdictions can levy an additional 1% local option sales tax.

Kansas

Cost of Living Index: 86.7

Average Cost of New Construction: $312,435 (TodaysHomeowner.com, September 2024)

Kansas stands out as one of the most economically favorable states, securing second position on the list of the lowest to highest living costs and boasting a cost of living estimated to be 14% lower than the national average, per data gathered in 2024 by MERIC and RentCafe. As of December 2024, the home value in Kansas averages in the upper $226Ks, based on the Zillow Home Value Index. Move.org reports utilities average $464 monthly in November 2024, including energy, water, internet, natural gas, and phone, and grocery costs are around $372 per person monthly. Childcare runs around $8,742 per child annually, per World Population Review’s 2024 data. The Kansas state income tax rates, as of 2024, follow a graduated tax structure, ranging between 3.1% to 5.7%, while the state sales tax rate is 6.5% (or 8.65% combined with local sales tax rates) and the property tax rate is 1.26% for owner-occupied homes, according to the Tax Foundation. 

Kentucky

Cost of Living Index: 92.9

Average Cost of New Construction: $308,661 (TodaysHomeowner.com, September 2024)

Kentucky has a relatively low cost of living compared to the broader U.S. landscape, specifically 8% lower than the national average in September 2024, per RentCafe. Homes in the state tend to be more affordable, with Zillow reporting an average home value in the lower $209K range as of December 2024. Move.org reports that Kentucky utility costs can run higher, averaging around $479 monthly in 2024, and notes that groceries average $407 monthly. World Population Review’s 2024 data finds childcare runs approximately $6,841 annually per child. As of 2024, Kentucky has a flat state income tax rate of 4.%, with a state sales tax rate of 6% and a 0.74% effective property tax, per the Tax Foundation. 

See new home communities in Kentucky. 

Louisiana

Cost of Living Index: 93.5

Average Cost of New Construction: $295107 (TodaysHomeowner.com, September 2024)

The cost of living in Louisiana is 9% lower than the September 2024 national average, says RentCafe. According to MERIC's 2024 data, the state’s living costs rank 19th lowest in the country. Zillow’s December 2024 data shows the average home value in the low $197Ks. As of November 2024, Move.org finds average utility costs land at $499 per month, and residents pay about $443, on average, each month for groceries. World Population Review states childcare costs are approximately $7,800 annually. The Tax Foundation reports Louisiana’s 2024 state income tax rates follow a graduated structure, ranging between 1.85% and 4.25%, with the state sales tax rate at 4.45% and the combined state and local sales tax averaging 9.65%, while the effective property tax rate is 0.51%. 

Maine

Cost of Living Index: 113.5

Average Cost of New Construction: $345,816 (TodaysHomeowner.com, September 2024)

As of December 2024, the average home value in Maine is in the mid $395K range, according to Zillow. Utility costs as of November 2024 average around $459 per month, per Move.org, and monthly grocery costs average $486 per person. Childcare is approximately $9,891 annually per child in 2024, per World Population Review. Maine’s 2024 state income tax rates follow a progressive structure, ranging between 5.8% and 7.15%, while the state sales tax is 5.5%, and the effective property tax rate is 0.96% per the Tax Foundation. 

Maryland

Cost of Living Index: 98.9

Average Cost of New Construction: $337,392 (TodaysHomeowner.com, September 2024)

RentCafe finds the cost of living in Maryland is 16% higher than the national average in September 2024. Zillow reports the average home value in Maryland is estimated to be in the lower $419Ks as of December 2024, while Move.org states average monthly utility costs in November 2024 are $510, including energy, water, internet, natural gas, and phone bills. Grocery bills in Maryland generally average just $429 per month (Move.org, November 2024), and annual childcare costs average $11,106 (World Population Review, 2024). The state income tax ranges between 2% and 5.75%, the state sales tax is 6%, and the property tax rate is 0.95% (Tax Foundation, 2024). 

Massachusetts

Cost of Living Index: 146.9

Average Cost of New Construction: $402,709 (TodaysHomeowner.com, September 2024)

The cost of living in Massachusetts is significantly higher than the national average, with an index almost 46% greater than the norm, per RentCafe as of September 2024. As of December 2024, Zillow reports the average home value in Massachusetts is slightly over $623K. In 2024, Move.org finds monthly utility costs are approximately $516, and monthly groceries average $506 per person. Per World Population Review, Massachusetts has the highest childcare rates, averaging $16,781 per child annually in 2024. Graduated state income taxes range from 5% to 9%, the sales tax rate is 6.25%, and the effective property tax rate is 1.04%, according to the Tax Foundation’s 2024 data.

Michigan

Cost of Living Index: 92.3

Average Cost of New Construction: $325,347 (TodaysHomeowner.com, September 2024)

Michigan stands out for its relatively low cost of living, with a 4% lower cost of living than the national average (RentCafe, September 2024) and ranking 13th among states, per data from MERIC in 2024. The average home value in Michigan in December 2024 is in the low $241K range, reports Zillow. According to Move.org, utility costs average $424 monthly, including energy, water, internet, natural gas, and phone bills, while Michigan residents spend about $392 monthly on groceries per person as of November 2024. The state runs about $11,086 per child for childcare annually per World Population Review in 2024. Lastly, the state has a flat income tax rate of 4.25%, a state sales tax rate of 6%, and a 1.24% effective property tax rate as of 2024, reports the Tax Foundation. 

Minnesota

Cost of Living Index: 95.3

Average Cost of New Construction: $352,943 (TodaysHomeowner.com, September 2024)

RentCafe’s September 2024 data finds that Minnesota offers a cost of living 4% lower than the national average. As of December 2024, Zillow reports the average home value in Minnesota is in the mid $330Ks. Move.org notes that 2024 utility costs in the state average $422 monthly, and Minnesota's grocery and food costs generally average $416 monthly. Annual childcare in 2024 runs about $12,954 per child, according to World Population Review. Minnesota has a graduated state income tax rate ranging from 5.35% to 9.85% and a state sales tax of 6.875% (or 8.04% combined state and local sales tax rate), with an effective property tax rate of 0.98%, per the Tax Foundation for 2024.

Mississippi

Cost of Living Index: 87.5

Average Cost of New Construction: $287,670 (TodaysHomeowner.com, September 2024)

As of September 2024, Mississippi has the third lowest cost of living ranking in the United States on the MERIC Cost of Living Index and is a remarkable 13% below the national average per RentCafe. Zillow’s December 2024 data shows the average home value in Mississippi is just under $178K, highlighting the affordability of housing in the state. Utility costs constitute a significant component of Mississippi's cost of living, with a monthly expenditure of approximately $494 in 2024, according to Move.org, while food and grocery expenses can run around $367 monthly per person. Childcare in the state, per World Population Review in 2024, averages $5,439 annually per child. The Tax Foundation states Mississippi has a flat state income tax rate of 4.7%, a combined state and local sales tax of 7.06%, and an effective property tax rate of 0.70% in 2024.  

Missouri

Cost of Living Index: 89.0

Average Cost of New Construction: $341,452 (TodaysHomeowner.com, September 2024)

As of September 2024, data from MERIC ranks Missouri sixth among states with the lowest cost of living, approximately 8% lower than the national average, per RentCafe. Home values in Missouri average around the lower $245Ks as of December 2024 per Zillow’s Home Value Index. Utility expenses for the state, as of November 2024, average around $606 monthly, as reported by Move.org, while grocery expenses per month tend to run $377 per person. For childcare expenses, World Population Review finds residents pay roughly $7,062 annually per child in 2024. Missouri's state income tax rate operates on a graduated system, spanning 2% to 4.8% in 2024, with a property tax rate of 0.82%, and some areas imposing an average combined state and local sales taxes of 8.39%, per the Tax Foundation.   

Montana

Cost of Living Index: 94.0

Average Cost of New Construction: $334,808 (TodaysHomeowner.com, September 2024)

MERIC’s 2024 data positions Montana at #20 in its cost of living rankings, which translates to living expenses that are 1% higher than the national average, according to RentCafe’s September 2024 numbers. As of December 2024, Zillow puts home values in Montana in the mid $451Ks. Move.org finds the state has an average monthly utility cost of around $490 in November 2024, encompassing energy, water, internet, natural gas, and phone services, while monthly grocery expenses in the state run an average of $411 per person. Annual childcare costs, per World Population Review, are approximately $9,334 per child as of 2024. The Tax Foundation reports that Montana's 2024 progressive state income tax structure ranges from 4.7% to 5.9% with an effective property tax of 0.69%, but the state levies no sales tax. 

Nebraska

Cost of Living Index: 92.8

Average Cost of New Construction: $332,676 (TodaysHomeowner.com, September 2024)

Nebraska stands out for its low cost of living at 9% below the national average (RentCafe, September 2024), coming in at 16th on MERIC’s 2024 Cost of Living Index. The average home value in Nebraska is around $257K (Zillow, December 2024), utilities are roughly $453 per month, groceries average $438 per month (Move.org, November 2024), and childcare is approximately $11,440 per child annually (World Population Review, 2024). The state’s income tax structure ranges from 2.46% to 5.84%, the state and local sales tax combined averages 6.97%, and the property tax rate is 1.44% (Tax Foundation, 2024). 

Nevada

Cost of Living Index: 100.1

Average Cost of New Construction: $326,753 (TodaysHomeowner.com, September 2024)

As of December 2024, Zillow estimates Nevada’s average home values to be in the mid $440Ks. According to Move.org, utility costs are approximately $485 per month as of November 2024, including energy bills, water, internet, natural gas, and phone bills, and groceries are about $382 monthly per person. Annual childcare costs in 2024, per World Population Review, run roughly $9,275 per child. One tax advantage residents enjoy is that Nevada has no state income tax, though the combined state and local sales tax rate averages 8.24% and the property tax rate is 0.44%, per the Tax Foundation’s 2024 figures.

New Hampshire

Cost of Living Index: 111.5

Average Cost of New Construction: $361,098 (TodaysHomeowner.com, September 2024)

New Hampshire ranks 39th on MERIC’s 2024 Cost of Living Index, meaning the state tends to have higher living expenses. Zillow’s December 2024 data puts New Hampshire’s home values in the upper $476K range. Move.org finds utility costs average $514 per month, and monthly grocery expenses run roughly $357 per person. World Population Review notes that childcare costs can be more expensive, averaging $11,114 annually per child in 2024. That said, New Hampshire stands out for its tax structure, with a 3% flat income tax collected only on interest and dividend income and no state sales tax, per the Tax Foundation as of 2024, though the effective property tax rate is 1.61%. 

New Jersey

Cost of Living Index: 114.8

Average Cost of New Construction: $387,262 (TodaysHomeowner.com, September 2024)

RenCafe reports that the cost of living in New Jersey in September 2024 is 11% higher than the national average, with housing 30% higher. As of December 2024, Zillow states the average home value in New Jersey to be in the mid $538K range. Move.org notes utility costs average $505 monthly, comprising energy, water, internet, natural gas, and phone service expenses, and residents pay an average of $390 per person monthly on grocery and food costs as of November 2024. World Population Review finds that childcare costs average $13,367 annually per child in 2024. New Jersey's graduated state income tax ranges from 1.400% to 10.750%, while the property tax rate is 2.08% and the state sales tax rate is 6.625%, though when combined with varying local sales tax rates, the average is around 6.60%, according to 2024 Tax Foundation research. 

New Mexico

Cost of Living Index: 92.9

Average Cost of New Construction: $314,409 (TodaysHomeowner.com, September 2024)

Recognized for its lower cost of living, New Mexico is 5% lower than the national average, as indicated by RentCafe’s September 2024 data. As of December 2024, Zillow reports the average home value in the state to be around the mid $302Ks. As of November 2024, Move.org finds monthly utility costs are approximately $374 and estimates monthly grocery expenses to be around $440 per person. Childcare costs in 2024 average $8,766 annually per child, according to World Population Review. New Mexico's graduated state income tax rates run from 1.7% to 5.9%, showcasing a progressive structure. State and local sales tax combine for an average rate of 7.62%, and the property tax rate for homeowners is 0.67%, all per the Tax Foundation in 2024. 

See new home communities in New Mexico. 

New York

Cost of Living Index: 123.4

Average Cost of New Construction: $371,875 (TodaysHomeowner.com, September 2024)

It’s likely no surprise that New York, a bustling state with over 8.4 million residents, is one of the most expensive places to live, with a cost of living soaring 26% over the national average as of September 2024, per RentCafe. Home values average slightly under $764K, per data captured by the Zillow Home Value Index in December 2024. Move.org reports an average monthly cost of $489 for utilities in November 2024, while residents spend an average of $555 monthly on groceries per person, ranking the second highest. Childcare costs are also among the highest, averaging $12,844 per child annually in 2024, according to World Population Review. New York's graduated state income tax structure spans from 4% to 10.90%, according to Tax Foundation’s 2024 data, which also reveals the owner-occupied property tax rate is 1.54% and that state and local sales tax rates result in an average of 8.53%, contingent on the specific location within the state.

North Carolina

Cost of Living Index: 98.9

Average Cost of New Construction: $297,062 (TodaysHomeowner.com, September 2024)

With an average cost of living 5% lower than the national average in September 2024, per RentCafe, North Carolina offers affordable appeal. Homes run in the mid $327Ks, on average, per Zillow in December 2024, and utility costs average $469 per month, per Move.org in November 2024. Move.org also reports monthly grocery prices average $475 per person in 2024, and World Population Review shares that annual childcare costs are approximately $9,350 per child. North Carolina's flat income tax rate of 4.50% contributes to the state's tax landscape, per the Tax Foundation’s 2024 research, while the combined state and local sales tax is around 7%, and the property tax rate for owner-occupied homes is 0.63%. 

See new home communities in North Carolina. 

North Dakota

Cost of Living Index: 92.1

Average Cost of New Construction: $340,480 (TodaysHomeowner.com, September 2024)

North Dakota secures the 12th position in MERIC’s 2024 cost of living rankings, with RentCafe’s September 2024 data finding overall living costs to be 6% lower than the national average. As of December 2024, Zillow notes the average home value in the state is in the low $264Ks, while Move.org finds 2024 utility costs average $405 and grocery costs approximately $474 per month. Childcare expenses average $8,624 per child annually in 2024, per World Population Review. North Dakota's 2024 graduated state income taxes run between 1.95% to 2.50%, and the sales tax rate of 5% can vary when additional local taxes apply, resulting in an average rate of 7.04%, per the Tax Foundation. The effective property tax for owner-occupied homes is 0.97%. 

Ohio

Cost of Living Index: 94.9

Average Cost of New Construction: $333,741 (TodaysHomeowner.com, September 2024)

With a population of over 11 million people, Ohio offers a living cost that is notably 7% lower than the national average, per RentCafe 2024 data. Home values average in the upper $227Ks, per Zillow’s December 2024 numbers. Utility expenses average around $499 per month, per Move.org, and the average spend on groceries each month is roughly $392 per person, all based on data as of November 2024. According to World Population Review, 2024 childcare costs average $8,303 yearly per child. The Tax Foundation reports that Ohio's 2024 state income tax operates on a progressive system, with rates ranging between 2.750% and 3.500%, with the sales tax averaging 7.24% when combining state and local rates, and the owner-occupied homes have a property tax rate of 1.30%. 

See new home communities in Ohio. 

Oklahoma

Cost of Living Index: 87.9

Average Cost of New Construction: $300,673 (TodaysHomeowner.com, September 2024)

Oklahoma is one of the lowest cost of living states at 12% less than the national average (RentCafe, September 2024), ranking fourth on the MERIC’s 2024 Cost of Living Index. The average home value, as of December 2024, is in the upper $203K range, according to the Zillow Home Value Index. The average monthly cost of utilities is about $479, and residents pay about $401 monthly per person for groceries (Move.org, November 2024). Annual childcare expenses run $7,520 per child (World Population Review, 2024). Oklahoma's graduated state income tax is between 0.25% and 4.75%, the sales tax rate averages 8.9% for state and local rates combined, and the effective property tax rate is 0.76% (Tax Foundation, 2024).

Oregon

Cost of Living Index: 110.0

Average Cost of New Construction: $338,532 (TodaysHomeowner.com, September 2024)

According to MERIC’s 2024 data, Oregon ranks 38th among states, placing it in the higher cost of living range, more specifically 10% higher as of September 2024 per RentCafe. As of December 2024, the state’s average home value is around $490K, according to Zillow. Utility costs also play a crucial role in Oregon's overall cost of living, with Move.org sharing that the average monthly cost is around $600 and $467 for grocery costs. World Population Review finds that 2024 annual childcare costs run approximately $8,749. Oregon's state income tax operates on a progressive system, with 2024 rates ranging from 4.75% to 9.9% alongside a 0.77% property tax rate, per the Tax Foundation; however, the state has no state sales tax. 

Pennsylvania

Cost of Living Index: 94.9

Average Cost of New Construction: $339,167 (TodaysHomeowner.com, September 2024)

Pennsylvania’s average cost of living in September 2024 is 4% lower than the national average, per RentCafe, and lands at #22 in the MERIC 2024 rankings. As of December 2024, Zillow estimates the average home value in Pennsylvania to be in the mid $265K range. Move.org notes monthly utility expenses run roughly $460 as of November 2024, and groceries cost an average of $444 per person monthly. The annual cost of childcare in 2024 is approximately $10,150 per child, as reported by World Population Review. Residents pay a flat state income tax of 3.07% (with local income taxes collected in some areas), state and local sales tax rates average 6.34%, and owner-occupied homes incur a property tax rate of 1.26%, according to 2024 Tax Foundation research. 

Rhode Island

Cost of Living Index: 112.4

Average Cost of New Construction: $372,069 (TodaysHomeowner.com, September 2024)

Rhode Island surpasses the national average, placing the state 41st on MERIC’s 2024 Cost of Living Index. These higher living costs are reflected in housing, utility, and food prices. As of December 2024, Zillow finds the average home value in Rhode Island just under $467K, and Move.org reports that the combination of energy, water, internet, natural gas, and phone costs to be about $496 per month as of November 2024, with monthly grocery expenses averaging $479 per person. Annual childcare costs average $11,700 per child, per 2024 World Population Review data. Finally, the Tax Foundation research lists Rhode Island's graduated state income tax rate ranging from 3.75% to 5.99% in 2024, with a state sales tax of 7% and a property tax rate for homeowners of 1.23%.

South Carolina

Cost of Living Index: 95.2

Average Cost of New Construction: $301,079 (TodaysHomeowner.com, September 2024)

In South Carolina, the cost of living is notably 6% below the national average in September 2024, per RentCafe, offering a more affordable lifestyle for its residents. According to Zillow, as of December 2024, home values average $294K. Utility costs in November 2024, including energy, water, internet, natural gas, and phone, average $499 per month, says Move.org, with groceries averaging $427 monthly per person. For childcare, World Population Review reports an annual cost of approximately $9,932 per child in 2024. South Carolina's state income tax rate runs from 0% to 6.4%, with a property tax rate of 0.46% and a combined state and local sales tax of 7.50%, per the Tax Foundation’s 2024 data.

See new home communities in South Carolina. 

South Dakota

Cost of Living Index: 92.3

Average Cost of New Construction: $301,739 (TodaysHomeowner.com, September 2024)

RentCafe reports South Dakota’s cost of living sits 7% below the national average as of September 2024. Zillow’s December 2024 data shows the average home value rose 3.6% in the state over the past year to reach the mid $302Ks. For other 2024 living expenses, Move.org finds monthly utility costs average around $410 and notes monthly grocery costs average $462. World Population Review states annual childcare expenses fall below the national average, running approximately $6,677 per child in 2024. Per the Tax Foundation, in 2024, South Dakota residents benefit from the absence of a state income tax, while state and local sales tax rates combine for an average of 6.11%, and owner-occupied homes incur a property tax rate of 1.01%.

Tennessee

Cost of Living Index: 90.0

Average Cost of New Construction: $302,204 (TodaysHomeowner.com, September 2024)

At ninth on MERIC’s 2024 cost of living Index, Tennessee tends to be one of the more budget-friendly states, coming in 8th in the rankings over the past year. RentCafe backs up that ranking, finding the cost of living in Tennessee to be 10% lower than the national average as of September 2024. According to Zillow, in December 2024, home values are up 2.1%, averaging in the mid $319Ks. Monthly utilities are roughly $503 monthly, per Move.org, which also reports residents pay an average of $469 monthly per person for groceries. World Population Review states childcare is about $8,759 annually per child as of 2024. Notably, Tennessee has no state income tax, a financial advantage for residents, though the state and local sales tax rates combined can average 9.55% while property tax rates are 0.48% for owner-occupied homes,  according to the Tax Foundation’s 2024 research. 

See new home communities in Tennessee. 

Texas

Cost of Living Index: 92.6

Average Cost of New Construction: $309,334 (TodaysHomeowner.com, September 2024)

Texas stands out as one of the more economically advantageous states, with its cost of living 7% below the national average in September 2024, per RentCafe. Texans enjoy affordable housing costs, averaging in the upper $299Ks as of December 2024, per Zillow. Utilities in 2024, including energy, water, natural gas, internet, and phone, cost approximately $571 monthly per Move.org, with groceries per person running roughly $424 monthly. As for childcare, World Population Review reports that this annual expense to be approximately $9,147 in 2024. The state levies no state income tax, but 2024 state and local sales tax rates combined average 8.2%, per the Tax Foundation, with an effective property tax of 1.47%. 

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Utah

Cost of Living Index: 109.5

Average Cost of New Construction: $338,173 (TodaysHomeowner.com, September 2024)

RentCafe’s 2024 data reports Utah’s average cost of living is on par with the national average. Zillow finds the average home value in December 2024 to be in the mid $517K range, while data from Move.org shows Utah's 2024 utility costs average around $537 and groceries about $359 per person monthly, which can help balance out housing costs. Childcare in 2024 averages $8,268 annually per child, according to World Population Review. The Tax Foundation reports Utah has a flat rate state income tax of 4.55%, an average 7.25% sales tax (state and local combined), and a property tax rate of 0.47% as of 2024. 

Vermont

Cost of Living Index: 114.1

Average Cost of New Construction: $322,652 (TodaysHomeowner.com, September 2024)

Vermont lands among the top ten most expensive states in MERIC’s 2024 rankings. Zillow finds the state’s home values are at the high end of $385K in December 2024, and Move.org 2024 data shows utilities average $450 per month and groceries run roughly $434 per person. Childcare can be high as well, with the annual cost averaging $12,835 per child, according to World Population Review 2024 data. Per the Tax Foundation, the 2024 graduated state income tax ranges from 3.35% to 8.75%, the combined state and local sales tax averages 6.36%, and the property tax rate for an owner-occupied home is 1.56%. 

Virginia

Cost of Living Index: 100.5

Average Cost of New Construction: $310,815 (TodaysHomeowner.com, September 2024)

Virginia accommodates over 8.6 million residents who enjoy a cost of living on par with the national average as of September 2024, per RentCafe. Zillow places the state’s average home value in the upper $392K range as of December 2024, and Move.org finds utilities contribute an average monthly cost of $519 to residents’ 2024 living expenses, with grocery costs slightly lower at around $362 monthly. Childcare in 2024 averages $10,451 annually per child, according to World Population Review. Lastly, as of 2024, Virginia's state income tax rates range from 2% to 5.75%, with the average sales tax at about 5.77% (combining state and local rates) and the property tax rate at 0.72%, reports the Tax Foundation.

Washington

Cost of Living Index: 113.6

Average Cost of New Construction: $363,120 (TodaysHomeowner.com, September 2024)

Living in Washington state comes with a higher price tag, with RentCafe reporting the 2024 cost of living in this state being 17% higher than the national average. That means housing expenses in the state are also notably steep, with home values in the low $589Ks according to Zillow’s December 2024 data. Utilities are 7% lower than the national average (RentCafe, 2024), averaging $523 per month per Move.org’s 2024 findings, with groceries averaging $512 per person. Childcare also puts Washington in the higher price range in 2024, with those costs averaging $13,404 per child annually, according to World Population Review. The Tax Foundation reports, as of 2024, that Washington collects no state income tax but levies a 7% tax on capital gains, while the sales tax averages 9.38% (state and local rates combined) and the property tax rate is 0.76%. 

West Virginia

Cost of Living Index: 84.8

Average Cost of New Construction: $304,383 (TodaysHomeowner.com, September 2024)

West Virginia takes the top spot in MERIC’s 2024 rankings as the state with the lowest cost of living. According to RentCafe, the cost of living in this state is 9% lower than the national average overall in 2024, with housing a remarkable 21% lower. Zillow’s December 2024 data agrees, finding the average home in the very affordable mid $166K range. However, Move.org finds that West Virginia has the highest utility costs in 2024, running approximately $692 monthly, though that amount is somewhat balanced out by grocery costs, which average $347 per person each month. For childcare, World Population Review reports the annual cost in 2024 to be roughly $8,320 per child. West Virginia's state income tax rates range from 2.36% to 5.12% in graduated tax brackets for 2024, with the combined state and local sales tax rates averaging 6.57% and the property tax at 0.55%, according to the Tax Foundation. 

Wisconsin

Cost of Living Index: 99.3

Average Cost of New Construction: $335,209 (TodaysHomeowner.com, September 2024)

Wisconsin’s cost of living runs around 2% lower than the national average (RentCafe, September 2024), with an average home value in the mid $301Ks (Zillow, December 2024). Monthly utilities cost about $382, some of the lowest rates in the country, and groceries average $383 per person (Move.org, 2024), while annual childcare expenses cost roughly $10,536 per child (World Population Review, 2024). Wisconsin's graduated state income tax ranges from 3.50% to 7.65%, the sales tax averages 5.70%, incorporating both state and local rates, and the effective property tax rate is 1.38% for owner-occupied homes (Tax Foundation, 2024).

Wyoming

Cost of Living Index: 95.4

Average Cost of New Construction: $329,590 (TodaysHomeowner.com, September 2024)

Though it’s the last state on our list, Wyoming’s average cost of living lands it at the #25 spot on MERIC’s 2024 rankings, with an average cost of living 7% lower than the national average, according to RentCafe's September 2024 findings. As of December 2024, Zillow reports the average home value is in the mid $352Ks, and Move.org notes 2024 utility costs run an average of $514 and grocery costs are around $336 monthly. World Population Review’s 2024 research places annual childcare costs at $8,236 per child. Wyoming distinguishes itself as another state that collects no state income tax, while the state and local sales tax rates combined average 5.44%, and the effective property tax rate is 0.55%, according to the Tax Foundation’s 2024 findings. 

Lowest Living Cost States

Looking to stretch your budget without compromising on lifestyle? The Midwest and Deep South are home to the top five states with the lowest cost of living, according to MERIC’s 2024 Cost of Living Index. From Gulf Coast shores to rural landscapes, these states offer affordability without sacrificing beauty. For aspiring homeowners, understanding real estate costs is essential, so let's uncover the low-cost lifestyle these states can offer:

1. West Virginia stands out as one of the most economical states in the U.S., with a cost of living 9% less than the national average in 2024, per RentCafe, and an average home value in the mid $166Ks, per Zillow in December 2024. 

2. Kansas comes in second as the most affordable state in the U.S., per MERIC’s 2024 data, with a low-cost lifestyle thanks to a cost of living reported to be 14% lower than the national average, according to RentCafe’s 2024 data. The average home value is in the upper $226Ks per Zillow as of December 2024.

3. Mississippi rounds out the top three states with a 2024 cost of living 13% lower than the national average, per RentCafe in 2024. Zillow lists the average home value in the high $177Ks as of December 2024, offering lots of economic appeal. 

4. Oklahoma has an average home value in the upper $203Ks, per Zillow’s December 2024 data, which aligns with the state's economic advantages and affordable utility, grocery, and state income tax costs. Overall, RentCafe puts the average cost of living in this state at 12% lower than the national average.

5. Alabama ranks fifth among economically favorable states, with a 2024 average home value in the low $225K range, per Zillow, and an average cost of living 12% lower than the national average, per RentCafe, helping make the state an economically attractive choice.

Highest Living Cost States

For those who desire premium living and are prepared for a higher price tag, these are the top five most expensive states to reside in, making up the coastal corners of the country. A 2023 Forbes® Advisor analysis highlights that homeownership costs should generally remain at or below 28% of a borrower's gross monthly income, but the reality is this figure often reaches the 30% range. Let’s take a look at the financial landscapes of these high-cost states and how these expenses impact residents:

1. Hawaii is the most expensive U.S. state to live in, topping MERIC’s 2024 Cost of Living Index with an average home value in the low $843K range per Zillow. Residents also contend with steep utility costs averaging $756 and grocery prices averaging $638 per month, according to Move.org. Additionally, the state income tax can range from 1.4% to 11.0% in 2024, per the Tax Foundation. 

2. Massachusetts also maintains a significantly higher cost of living, nearly 46% above the national average in 2024, reports RentCafe. Estimated home values are in the mid $623K range in December 2024, according to Zillow, while monthly utility costs are approximately $516, per Move.org, in November 2024. The state imposes an income tax between 5% and 9% on top of a 6.25% combined state and local sales tax, per the Tax Foundation’s 2024 research.

3. California’s cost of living is 38% higher than the national average (RentCafe, September 2024), and the median home price is around $778K (Zillow, December 2024). Monthly grocery prices average $458 per person, and monthly utilities run approximately $572 (Move.org, November 2024). The state's income tax rates differ by bracket, ranging from 1.00% to 13.30%, and the average combined state and local sales tax is around 8.85% (Tax Foundation, 2024).

4. Alaska takes the fourth spot of the highest living cost states, with an average cost of living 31% higher than the national average, per 2024 RentCafe data, and median home values in the mid $368K range, per Zillow in December 2024. Utility costs are roughly $556 per month, and the state ranks as the fourth most expensive for groceries, according to Move.org as of November 2024. However, Alaska stands out as a state with one of the lower tax burdens in the U.S., with no state income tax and a combined state and local sales tax rate averaging 1.82%, per the Tax Foundation. 

5. New York rounds out the top five, boasting a cost of living 26% higher than the 2024 national average, per RentCafe. Zillow estimates the average home value to be in the upper $763K range as of December 2024, and Move.org puts 2024 utility costs at $489 monthly. State income tax rates range from 4% to 10.90%, and the state and local sales tax rates combined average 8.53%, per the Tax Foundation in 2024.

Affordable New Construction Homes by State

Becoming a homeowner is an exciting adventure, and finding the perfect new home is key. Across the United States, various states offer opportunities for affordable living without compromising on quality. Explore each state, where new homes cater to different budgets, design preferences, and lifestyles. Whether you've saved up for a new build along the coast or your budget is more suited for a cozy country home in the South, check out these affordable new construction homes by state:

• New home communities in Arizona

• New home communities in California

• New home communities in Florida

• New home communities in Georgia

• New home communities in Kentucky

• New home communities in New Mexico

• New home communities in North Carolina

• New home communities in Ohio

• New home communities in South Carolina

• New home communities in Tennessee

• New home communities in Texas

Conclusion

Having a general idea of the living cost index by state can play an important role in deciding on the best place for your budget and new home. The cost of living, state by state, can vary greatly. Coastal states like California, New York, Massachusetts, and Alaska are among the most expensive, with Mississippi, West Virginia, and Oklahoma coming in well below the national cost of living average and are some of the most affordable states in the country. Though extreme costs exist on both ends of the spectrum, most U.S. states fall right around the national average. Use our extensive state-by-state comparison cost of living guide to make an informed decision when planning your next move. 

Explore affordable new homes today or browse more Centex® blogs. 

Written By: Jordan Thomson, Freelance Writer

Last Updated: 3/12/25