America’s most affordable states to live in this year.
South Dakota: The Most Affordable Place to Live in America
When it comes to housing, living expenses, taxes, insurance, and even grocery costs, South Dakota is the winner for the most affordable place to live in America. In its “Cheapest States to Live in 2023“ report, Scholaroo, a college scholarship search platform, analyzed all 50 states using 31 metrics, which also included cable, internet, utility, medical, transportation, and even haircut and manicure costs. Indiana came in second, followed by Arkansas, Mississippi, and Nebraska.
Scholaroo spokesperson Abigail Da Costa told The Epoch Times that this is the first time they have conducted a report on the average cost of living in all 50 states.
“While individual preferences and economic circumstances will inevitably influence personal costs, the primary aim of this report is to serve as a comprehensive guide on the estimated expenses of living in each state,” she explained. “Prospective homebuyers can also benefit from this study, as it provides valuable insights into the most suitable locations to purchase property based on their financial situation.”
Hidden Gem: South Dakota’s Affordability
Amy Stockberger, broker and owner of Amy Stockberger Real Estate in Sioux Falls, South Dakota, wasn’t surprised that her state was named the most affordable in the nation.
“We’re a little hidden gem and everything from groceries to utilities and gas prices is reasonable, plus in Sioux Falls, job wages are comparable to other larger metro areas,” she told The Epoch Times.
With a median single-family home price of $312,000 inside Sioux Falls, the area has been attracting buyers from California, Minnesota, and the Northeast. Last year, the state’s largest city saw an influx of about 7,000 people.
“We do get a strong population of people who want to retire here,” she said. “We have a low crime rate, a lower cost of living, and no pollution. In fact, for the first time in my 23-year career, I’ve seen siblings and relatives of relocating families also following them to move here.”
Another incentive to move to South Dakota, noted Ms. Stockberger, is the fact that they have no state income tax. “It’s a great place to start a business as well,” she said.
With four seasons, the state offers attractive outdoor activities like hiking, biking, and sledding. Sioux Falls alone has over 80 parks and 30 miles of bike trails.
“We’ve been listed many times as one of the best places to raise a family,” Ms. Stockberger added.
West Virginia: Affordable Home Buying Options
While South Dakota scored the overall best location for affordability, the Scholaroo report names West Virginia the leader in affordable home buying options, with the average monthly mortgage cost for a single-family home at $879, followed by Arkansas at $947 and Alabama at $970. On the other end, the average mortgage payments for California, New York, New Jersey, Connecticut, Massachusetts, and Hawaii are all above $2,000. California had the highest cost with an average of $2,402.
Joshua McGrath, CEO of BHG Real Estate Central in Charleston, West Virginia, has been selling residential real estate for almost 25 years.
“Since the pandemic, I’ve seen more and more people relocating to West Virginia,” he told The Epoch Times. “In addition to affordability, people are looking for more spacious land. They don’t want a tight community with no yard.”
McGrath is currently working with a couple from Colorado who have decided to move back to their West Virginia roots. ”They can sell their home there, relocate here, reduce costs by about 50 percent, and still have a comparable house,” he said.
One of McGrath’s recent listings for a 3-bedroom, 2-bath home on 3 acres had 26 showings and 6 offers in just 48 hours. “We’re still seeing bidding wars here, and the accepted offer was well over the $289,000 asking price,” he added.
Low taxes are another reason that West Virginia scores high on the affordability charts—the average taxes on a single-family home are less than $2,000 a year. Outdoor activities like hiking, zip-lining, and white-water rafting are another draw to the area.
While Charleston is the state’s capital, it’s considered a smaller city but is just a few hours away from major metropolitan areas such as Lexington, Kentucky, and Cincinnati, Ohio.
Affordability Across the Nation
In terms of median home value, Scholaroo reports that Mississippi has the lowest in the nation, followed closely by West Virginia, Arkansas, Oklahoma, and Kentucky. Conversely, Washington State came in with the highest home value, followed by Massachusetts, New York, California, and Hawaii.
Maryland takes the lead for the highest annual median household income at $91,431, followed closely by New Jersey at $89,703 and Massachusetts at $89,026. Mississippi holds the number one spot for the lowest annual median income at just $49,111. West Virginia, Louisiana, Arkansas, and New Mexico are also included on the list of annual household median incomes under $60,000.
For apartment dwellers, West Virginia ranked first in terms of the least expensive state. The current one-bedroom apartment median rentals stand at $732 per month. Arkansas is a close second with monthly rentals of $760, followed by South Dakota at $761. Kentucky rents garner $783 and Mississippi, closing out the top five affordable locations, comes in at $789.
Meanwhile, Hawaii takes the lead for the most expensive rents, with an average of $1,651. California comes in second with an average rent of $1,586, and Maryland is third with $1,415. Rounding up the top five most expensive rental states are New Jersey and Washington State, both with rents above $1,300. “The reality is that there were no surprises here,” added Ms. Da Costa. “It was expected that the states located in the Midwest region would be the most affordable, and the states located on the coasts, such as California, New York, or Hawaii, the most expensive.”
Realtor.com’s newly released June Rental Report shows prices dropping nationwide by one percent year-over-year, but the median asking rent in the 50 largest metro areas
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