The Least Expensive American Counties to Live In

Economy

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Published: November 22, 2024 7:32 am

24/7 Wall St. Insights

Inflation has impacted every American in recent years, but still, how much Americans spend for similar goods and services can vary meaningfully, depending on where they live.
In dozens of counties across the U.S., consumer prices are lower than the national average by well over 18%.
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Amid a historic surge in inflation, the cost of living in the United States has been top of mind for millions of Americans for years. Every month since March 2021, inflation, as measured by the Consumer Price Index, has exceeded the Federal Reserve’s 2.0% target rate. Though the CPI is down from the multi-decade high of 9.1% reported in June 2022, at 2.6%, it remains elevated — and most Americans are feeling the impact, both financially and psychologically.

A recent survey conducted by the U.S. Census Bureau found that just over 60% of adults reported at least some difficulty paying for usual household expenses in the last week — and more than 93% of adults who were aware of rising consumer prices reported a related increase in stress levels.

The factors driving the surge in prices are varied and complex, but some of the most commonly cited culprits include pandemic related supply constraints and increased consumer demand. But even though no corner of the country was spared from the detrimental effects of these conditions, similar market forces have created far more deeply entrenched variations in the cost of living between American communities. And some parts of the country have long stood out for having a far lower than average cost of living.

Using data from the U.S. Department of Commerce, 24/7 Wall St. identified the least expensive U.S. counties to live in. The 50 counties on this list are ranked on estimated regional price parity — a measure of the cost of living relative to the national average. Supplemental data on median household income, median home value, and population are five-year estimates from the U.S. Census Bureau’s 2022 American Community Survey.

Among the counties on this list, the average cost of living is anywhere from about 19% to 25% lower than it is on average nationwide. Most are located in Southern states — including 10 in Alabama and 18 in Mississippi — states which, themselves, tend to be less expensive places to live than most of the rest of the country.

Lower consumer prices in these areas are driven, in part, by surplus supply in relation to consumer demand — particularly in the housing market. Many of these counties are sparsely populated rural areas, located outside of major metropolitan areas. In and around large cities, real estate available for housing is often limited, and this constricted supply, in addition to the demand driven by large populations, can drive up prices. (Here is a look at the cities Americans are flocking to.)

Of the 50 counties on this list, only one has a population of more than 100,000, and most are home to fewer than 30,000 people. Similarly, only four counties on this list are located within a major metro area. Partially as a result, among these counties, a typical home is worth anywhere from $15,500 to $219,500 less than the national median home value of $281,900, according to 2022 ACS estimates.

It is no coincidence that these same places are also home to relatively low-income populations. In places where incomes tend to be lower than average, consumer spending can be limited, which can, in turn, put downward pressure on the price of goods and services. The typical American household earns about $75,150 per year, and in every county on this list, the median household income falls below that threshold — in most cases, by over $25,000. (This is the income you need to comfortably afford a typical American home.)

These are the least expensive U.S. counties to live in.

Why It Matters

For years, rapidly rising prices have been top of mind for millions of Americans. But while no corner of the country was spared from the effects of inflation, there are specific places where longstanding, deeply entrenched supply and demand dynamics have pushed the cost of living well below what most Americans are accustomed to. Of the more than 3,000 counties or county equivalents in the U.S., there are only a few dozen where goods and services are over 18% less expensive than they are nationwide.