Cost of Living Data Shows Affordable States Becoming More Expensive as Migration Increases

Cost of living data for 2026 shows significant variation across U.S. states, but states that were previously considered affordable are experiencing rising costs as population migration increases demand for housing and services.

State Cost of Living Data

Mississippi has the lowest cost of living index at 83.3, meaning costs are approximately 17% below the national average. Kansas sits at 86.5. West Virginia, Oklahoma, Iowa, and Missouri are all below 90. Median home prices in Mississippi are approximately $140,000, and two-bedroom apartments rent for under $1,000 in many areas.

Hawaii has the highest cost of living index at 193.3. California and Massachusetts both exceed 180 in the housing category alone. The difference between the most and least expensive states amounts to approximately $2,500 per month for a single person and over $4,000 per month for a family of four.

Rising Costs in Previously Affordable States

Tennessee appears on most affordable-state lists, but Nashville's costs have risen substantially. Since 2020, Tennessee has absorbed hundreds of thousands of new residents. The median home price is now $220,000 and rising. Rents in Nashville and Knoxville have increased 30-40% since 2021.

Texas attracted migrants with no state income tax, job availability, and lower land costs. Austin's median home price within the city is approximately $500,000, with the broader metro area above $400,000. Dallas and Houston are approaching similar levels. Texas property taxes are among the highest in the country, partially offsetting the absence of state income tax.

Florida has experienced similar cost increases. Property insurance costs in some counties have tripled or quadrupled since 2020 due in part to increased climate risk pricing.

States that have maintained lower costs — Mississippi, West Virginia, Kansas, Iowa — have done so partly because fewer people moved there, reflecting lower wages, fewer jobs, and fewer economic opportunities.

Income Considerations

Cost of living comparisons require wage context. Mississippi has the lowest cost of living, but its median household income is approximately 30% below the national median. Kansas, Indiana, and Iowa show similar patterns where wages run below national medians.

The cost advantage of relocating depends on whether a worker can maintain their current salary. Remote workers earning salaries benchmarked to high-cost markets benefit most from relocation. Workers who need local employment may find lower wages offset lower living costs.

Tennessee and Texas have stronger job markets that partially compensate for rising costs. A worker leaving a $150,000 salary in San Francisco for a $90,000 position in Austin faces a narrowing cost differential.

Migration Patterns and Price Effects

When large numbers of people relocate to lower-cost areas simultaneously, increased demand for housing and services drives prices up in those areas. This pattern has occurred in Texas and is occurring in Tennessee.

Smaller Midwest cities — Columbus, Indianapolis, Omaha, Des Moines, Wichita — and parts of the Southeast outside Nashville and Charlotte have experienced less migration-driven cost inflation to date.

Structural Factors

The cost gap between states reflects differences in institutional investment, industry concentration, and economic development. Lower-cost states have generally seen less investment in high-paying industries. Higher-cost states concentrated economic activity in limited geographic areas. Individual relocation decisions navigate around these structural differences but do not change them.