For a while, it seemed that inflationary pressures may be easing, but recent reports suggest otherwise. Inflation remains stubbornly high, with the consumer price index rising by 3.1% annually in January, according to the Bureau of Labor Statistics. With sticky inflation in mind, it is interesting to see where the cost of living is cheap enough that it could offer some relief.
To find the state with the lowest cost of living, 24/7 Wall St. reviewed the Composite Cost of Living Index for the first quarter of 2025 published by the Missouri Economic Research and Information Center. The MERIC study uses an index based on the relative costs of groceries, housing, utilities, transportation, and health care to rank states.
The state with the lowest cost of living is Oklahoma, with an overall cost of living index at 85.5, meaning that the cost of living in the state is 14.5% cheaper than it is on average nationwide. This figure is driven largely by the state’s very low cost of housing — with a housing cost index value at 70.5, the second lowest in America. Among the 10 states with the lowest cost of living, four are in the South, while six are in the Midwest. For the 10 states with the highest cost of living, 7 are on the Eastcoast, 2 on the Westcoast, and Hawaii.
This post was updated on August 21, 2025 to include up-to-date information regarding Composite Cost of Living Index.
52. Hawaii
- Cost of living index: 182.3
- Grocery: 134.6
- Housing: 292.1
- Utility: 207.0
51. Massachusetts
- Cost of living index: 145.1
- Grocery: 102.7
- Housing: 215.0
- Utility: 158.9
50. California
- Cost of living index: 141.6
- Grocery: 108.8
- Housing: 197.8
- Utility: 140.7
49. District of Columbia
- Cost of living index: 135.2
- Grocery: 104.5
- Housing: 200.8
- Utility: 102.5
48. Alaska
- Cost of living index: 127.3
- Grocery: 130.3
- Housing: 131.2
- Utility: 132.1
47. New York
- Cost of living index: 124.7
- Grocery: 104.1
- Housing: 174.2
- Utility: 100.2
46. Maryland
- Cost of living index: 114.9
- Grocery: 105.1
- Housing: 133.8
- Utility: 114.4
45. New Jersey
- Cost of living index: 114.8
- Grocery: 102.6
- Housing: 143.3
- Utility: 102.1
44. Vermont
- Cost of living index: 113.7
- Grocery: 106.4
- Housing: 130.7
- Utility: 114.5
43. Connecticut
- Cost of living index: 113.5
- Grocery: 101.5
- Housing: 120.6
- Utility: 137.6
42. Maine
- Cost of living index: 113.4
- Grocery: 100.3
- Housing: 133.2
- Utility: 119.8
41. Oregon
- Cost of living index: 112.7
- Grocery: 105.1
- Housing: 131.2
- Utility: 94.7
40. Arizona
- Cost of living index: 112.5
- Grocery: 102.5
- Housing: 134.8
- Utility: 106.4
39. Washington
- Cost of living index: 112.0
- Grocery: 108.2
- Housing: 116.8
- Utility: 96.7
38. New Hampshire
- Cost of living index: 110.1
- Grocery: 98.8
- Housing: 116.2
- Utility: 120.7
37. Rhode Island
- Cost of living index: 109.3
- Grocery: 99.0
- Housing: 111.1
- Utility: 137.5
36. Colorado
- Cost of living index: 104.0
- Grocery: 102.6
- Housing: 111.4
- Utility: 88.3
35. Delaware
- Cost of living index: 103.5
- Grocery: 100.1
- Housing: 101.4
- Utility: 99.4
34. Puerto Rico
- Cost of living index: 103.4
- Grocery: 112.4
- Housing: 97.5
- Utility: 170.7
33. Florida
- Cost of living index: 102.0
- Grocery: 105.1
- Housing: 106.0
- Utility: 99.3
32. Idaho
- Cost of living index: 102.0
- Grocery: 104.4
- Housing: 100.2
- Utility: 73.9
31. Virginia
- Cost of living index: 101.4
- Grocery: 98.9
- Housing: 105.2
- Utility: 98.4
30. Utah
- Cost of living index: 100.5
- Grocery: 98.1
- Housing: 110.8
- Utility: 84.4
29. Wisconsin
- Cost of living index: 99.5
- Grocery: 99.6
- Housing: 99.7
- Utility: 92.4
28. Nevada
- Cost of living index: 99.5
- Grocery: 102.9
- Housing: 111.3
- Utility: 88.7
27. North Carolina
- Cost of living index: 97.8
- Grocery: 97.7
- Housing: 94.9
- Utility: 94.7
26. Pennsylvania
- Cost of living index: 97.5
- Grocery: 97.4
- Housing: 86.8
- Utility: 108.5
25. South Dakota
- Cost of living index: 97.3
- Grocery: 103.4
- Housing: 94.9
- Utility: 87.5
24. Wyoming
- Cost of living index: 97.0
- Grocery: 101.9
- Housing: 91.2
- Utility: 90.3
23. Montana
- Cost of living index: 96.4
- Grocery: 104.5
- Housing: 92.4
- Utility: 80.4
22. Ohio
- Cost of living index: 95.1
- Grocery: 99.6
- Housing: 86.7
- Utility: 97.1
21. Illinois
- Cost of living index: 94.7
- Grocery: 98.5
- Housing: 84.8
- Utility: 97.3
20. South Carolina
- Cost of living index: 94.6
- Grocery: 98.9
- Housing: 84.9
- Utility: 96.3
19. New Mexico
- Cost of living index: 94.2
- Grocery: 97.9
- Housing: 90.2
- Utility: 84.1
18. Minnesota
- Cost of living index: 93.7
- Grocery: 100.7
- Housing: 79.8
- Utility: 95.4
17. Louisiana
- Cost of living index: 93.2
- Grocery: 96.7
- Housing: 84.0
- Utility: 81.4
16. Nebraska
- Cost of living index: 92.4
- Grocery: 98.9
- Housing: 78.6
- Utility: 90.0
15. Texas
- Cost of living index: 91.8
- Grocery: 95.8
- Housing: 80.0
- Utility: 103.3
14. Georgia
- Cost of living index: 91.7
- Grocery: 97.7
- Housing: 79.7
- Utility: 102.6
13. Kentucky
- Cost of living index: 91.7
- Grocery: 99.7
- Housing: 75.0
- Utility: 87.3
12. Indiana
- Cost of living index: 90.8
- Grocery: 98.0
- Housing: 76.0
- Utility: 94.2
11. North Dakota
- Cost of living index: 90.8
- Grocery: 97.2
- Housing: 76.9
- Utility: 84.6
10. Arkansas
- Cost of living index: 90.5
- Grocery: 95.1
- Housing: 79.2
- Utility: 92.2
9. Tennessee
- Cost of living index: 90.0
- Grocery: 96.7
- Housing: 81.5
- Utility: 87.9
8. Michigan
- Cost of living index: 89.8
- Grocery: 98.9
- Housing: 73.9
- Utility: 97.4
7. Kansas
- Cost of living index: 89.7
- Grocery: 96.5
- Housing: 75.6
- Utility: 100.4
6. Iowa
- Cost of living index: 89.6
- Grocery: 95.7
- Housing: 77.7
- Utility: 89.5
5. West Virginia
- Cost of living index: 88.6
- Grocery: 96.7
- Housing: 71.6
- Utility: 92.2
4. Missouri
- Cost of living index: 88.0
- Grocery: 96.7
- Housing: 74.8
- Utility: 97.5
3. Alabama
- Cost of living index: 87.6
- Grocery: 97.6
- Housing: 69.1
- Utility: 98.8
2. Mississippi
- Cost of living index: 87.3
- Grocery: 95.9
- Housing: 72.5
- Utility: 89.7
1. Oklahoma
- Cost of living index: 85.5
- Grocery: 95.7
- Housing: 70.5
- Utility: 94.7
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