These are America’s 10 cheapest states to live in 

Federal Reserve Chairman Kevin Warsh, who is making a point of getting to the point in his new role, did just that in his first news conference as chairman on June 17. 

“Persistently high prices are a burden for the American people,” he said. 

But one thing he left out about nationwide inflation is that in some states, prices are much less of a burden than they are in others. 

The cost of living is an important consideration when companies decide where to do business. A low cost of living can help them attract workers. It also means they might be able to pay them less, saving on wage costs. 

That is why CNBC considers Cost of Living as one of ten categories of competitiveness in our America’s Top States for Business study, now in its 20th year.  

We rate the states based on an index of prices for a broad range of goods and services calculated by the Council for Community and Economic Research. We also consider housing affordability for both homeowners and renters. And, with the insurance crisis persisting nationwide, we measure the cost to insure a median-priced home based on the most recent available data. Under this year’s methodology, Cost of Living is worth 2% of each state’s total score. 

Some states are far more expensive than others, but in the following states, life is a bargain. 

These are America’s cheapest states in 2026, along with average prices of some basic items in key metro areas. 

Missouri 

Show me the rental listings in Missouri, and I’ll show you some cheap prices. According to ATTOM Data Solutions, the average rent for a three-bedroom home in the Show-Me State last year was just $1,582. That is the fifth-lowest in the country as a percentage of median income, and it is only about half what you would pay in New Jersey.

Housing isn’t the only thing that’s cheap. A head of lettuce in Joplin will cost you 12% less than it will in New York City, according to C2ER. One thing that is not a bargain, however, is insurance. Severe storms, including a tornado in and around St. Louis last year that killed at least four people and caused $1.6 billion in damage, are driving up the cost of insurance. Insurify projects that premiums in Missouri, already the 13th-highest in the country, will rise another 7% this year.  

2026 Cost of Living score: 34 out of 50 points (Top States grade: B+) 

Consumer Price Index (May, Midwest Region, year-over-year): +5% 

Average rent (3-bedroom home): $1,582 

Average home price (Springfield): $478,702 

Monthly energy bill: $149.83 

Dozen eggs (Q1 2026): $3.22 

Loaf of bread (Q1 2026): $3.39 

Ohio 

Your buck goes farther in Ohio, which has some of the nation’s lowest living costs in addition to the lowest business costs. It’s a big reason why…