Oklahoma has emerged as the state with the lowest cost of living in the United States, following the revelation that its major city, Oklahoma City, is the cheapest place to rent in the country.
The rapid rise in prices since the annual inflation rate jumped to seven percent in 2021 has left many Americans grappling with increased living expenses. However, recent research highlights Oklahoma as a beacon of affordability among all 50 states. According to a study by GOBankingRates, the annual costs for the average family in Oklahoma are 14.8 percent lower than the national average.
The study found that Oklahoma City offers significant savings, particularly in housing. The average rent for an apartment in Oklahoma City is 46 percent below the national average, positioning it as the cheapest big city for renters. Using metrics such as the average price of groceries, housing, and utilities, the research determined that Oklahoma has the lowest cost of living in the United States.
An average family in Oklahoma can expect to spend around $62,900 annually on essential expenses, almost 15 percent less than the national average. The state’s residents benefit from six percent lower grocery costs and two percent lower utility costs compared to the national averages. However, the most substantial savings are found in housing, where costs are nearly a third less than the national average.
The allure of affordable housing has drawn many Americans to Oklahoma, particularly those who can work remotely. In 2022, nearly 120,000 people relocated to Oklahoma, making it one of the top 10 states for attracting out-of-state residents. Real estate agents in the area have noted a significant increase in interest due to the low house prices, which offer a considerable draw for remote workers seeking cost-effective living conditions.
Mississippi ranks as the second cheapest state, with the average family spending $62,971 per year. On the opposite end of the spectrum, Hawaii is the most expensive state, with annual living costs reaching $131,560. Massachusetts and California follow, both with living costs exceeding $100,000. New York and Alaska also rank among the highest, with living costs over $91,000 annually.
In comparison, neighboring states such as Kansas, Arkansas, and Texas have cost-of-living expenses 23 percent, 11 percent, and 7.3 percent lower than the national average, respectively.
Oklahoma City’s affordability extends beyond housing costs. According to data compiled by the Council for Community and Economic Research’s Cost of Living Index, the average rent for an apartment in Oklahoma City is $839 per month. This figure underscores the city’s standing as the most affordable large city for renters, ahead of Birmingham, Alabama, and nearby Tulsa, Oklahoma. The list, compiled by Kiplinger from metro areas with populations exceeding one million residents, highlights numerous affordable cities primarily located in the South and West of the U.S.
Interestingly, a report by Realtor.com earlier this year revealed that renting has become more affordable than buying in all of America’s 50 largest metropolitan areas. Elevated mortgage rates and soaring house prices have tipped the balance, making renting a more viable option in these markets.
Despite its low cost of living, Oklahoma City offers an array of big-city amenities. The city boasts its own philharmonic orchestra, the National Softball Hall of Fame and Museum, and the NBA’s Oklahoma City Thunder basketball team. Additionally, the city is home to several leading oil and gas companies, including Devon Energy, Chesapeake Energy, and Continental Resources, making the energy sector a major employer in the region.
Beyond Oklahoma City, the state is home to 12 cities that rank among the cheapest small towns in America. This widespread affordability across the state highlights Oklahoma as an attractive destination for individuals and families seeking lower living costs without sacrificing access to urban amenities and opportunities.
As Americans continue to navigate the challenges of rising costs and economic uncertainty, Oklahoma’s position as the state with the lowest cost of living offers a compelling option for those looking to maximize their financial well-being.
