A combination of factors such as housing costs, insurance premiums, and everyday expenses has made West Virginia the nation’s cheapest state to live in, according to CNBC’s annual America’s Top States for Business rankings.
In 2025, West Virginia boasts a cost of living score of 58 out of 60 points, earning it an A+ grade. The state’s composite Cost of Living Index is less than half that of the most expensive state, Hawaii. With fewer than 20% of residents paying more than one-third of their monthly income for housing, West Virginia offers a relatively affordable lifestyle.
However, the state still faces challenges, including a shortage of affordable housing units. The National Low Income Housing Coalition estimates that West Virginia needs 25,000 more affordable housing units to meet demand. Currently, there are only 58 rental homes available per 100 low-income households.
Other states on the list include Iowa, Delaware, Wyoming, Ohio, Alabama, North Dakota, Missouri, Kansas, Indiana, and Michigan. These states have managed to keep their costs relatively low by being more affordable for residents, with some even bucking national trends in housing and insurance costs.
Michigan ranks 2nd, followed closely by Iowa, who also scores 39 out of 60 points. Delaware takes the 3rd spot, thanks to its stable insurance premiums and reasonable housing costs. Wyoming, Ohio, Alabama, North Dakota, Missouri, Kansas, Indiana, and Michigan round out the top 10.
While these states may be the cheapest places to live in the US, it’s essential to note that affordability can vary within each state depending on location and individual circumstances.
Source: https://www.cnbc.com/2025/07/11/americas-cheapest-places-to-live-top-states-for-business-rankings.html