The 10 cheapest states to live in the United States in 2024 are:

• Despite the decrease in inflation, consumer prices remain above the Fed's desired level.
• To attract workers, companies are examining areas where their employees' money stretches further, including expenses on food, housing, and insurance.
• The cost of living is taken into account when CNBC ranks America's Top States for Business annually. These 10 states are the cheapest in the U.S.

Some places are more affordable than others due to the varying cost of living from state to state.

Companies consider the cost of living when making location decisions to attract workers, which is why CNBC includes it in their annual state competitiveness ranking, America's Top States for Business.

Our 2024 methodology involves evaluating the states based on an index of prices for various goods and services, calculated by the Council for Community and Economic Research, C2ER. Additionally, we assess housing affordability. This year, we have introduced a new factor to our analysis, which is the cost of insurance on a median priced home in every state, based on the most recent available data.

These ten states offer the cheapest cost of living in America in 2024, with a list of selected prices in the most expensive metros in each state.

10. Wisconsin

In Madison, Wisconsin, life can be a relative bargain, even in the most expensive metro area. The cost of a six-pack of beer is lower than in other UW cities, with local brews being a great option. However, for consistency, the C2ER index uses Heineken. The real bargain in Wisconsin is homeowners insurance, which costs only $750 a year to insure a median-priced home, making it the lowest premium in the nation.

The cost of living in 2024 is estimated to be 35 out of 50 points, with the top states receiving a grade of B+.

The Consumer Price Index for the Midwest Region's East North Central Division increased by 2.2% in June.

Annual Homeowners Insurance (statewide): $750

Average Home Price (Madison): $520,565

Half Gallon of Milk: $4.79

Monthly Energy Bill: $226.90

9. Kansas

In Manhattan, Kansas, you can find a two-bedroom apartment for under $1,000 a month, with an average of $996. In Manhattan, New York, the same apartment would cost $5,215. If you choose the apartment in Kansas, you can afford to visit New York every year with the savings. However, in New York, even with the extra cash, be prepared for higher movie ticket prices, which are about 10% more than in Kansas. On the other hand, the cost of insuring your home in Kansas is increasing due to the risks of tornadoes, severe storms, and wildfires.

The cost of living in 2024 is estimated to be 36 out of 50 points, with the top states receiving a grade of B+.

The Consumer Price Index for the Midwest Region and West North Central Division in June increased by 3.0%.

Annual Homeowners Insurance (statewide): $1,523

Average Home Price (Manhattan Metro): $395,394

Half Gallon of Milk: $4.60

Monthly Energy Bill: $217.21

8. Missouri

In Kansas City, Missouri, I can show you a McDonald's Quarter Pounder with Cheese that is 36% cheaper than it would be if you ordered it in Boston. The Coke to wash it down will cost you about 5% less. However, in Missouri, home insurance premiums are rising for the same reasons as in neighboring Kansas, with median priced homes costing $1,257 to insure. Missourians are in need of a solution to this crisis.

The Consumer Price Index for the Midwest Region and West North Central Division in June increased by 3.0%.

Annual Homeowners Insurance (statewide): $1,257

Average Home Price (Kansas City): $440,210

Half Gallon of Milk: $4.62

Monthly Energy Bill: $217.10

7. Pennsylvania

Pennsylvanians can save on overall living costs, as the state's annual homeowners' insurance premium for a median-priced home is just $807, which is the third lowest in the nation. However, the state is taking steps to ensure that insurance is not only affordable but also dependable. In May, the Pennsylvania Insurance Department issued a notice reminding insurers of their obligations under state law to give policyholders the right to challenge actions based on aerial imagery alone.

The cost of living in 2024 is estimated to be 39 out of 50 points, with the top states receiving an A- grade.

The Consumer Price Index for the Northeast Region and Mid-Atlantic Division in June increased by 3.8%.

Annual Homeowners Insurance (statewide): $807

Average Home Price (Allentown): $496,134

Half Gallon of Milk: $4.54

Monthly Energy Bill: $210.10

5. (tie) Indiana

In most of Indiana, housing prices are not as expensive as they are nationally, with prices in many areas falling in the mid-$200,000s. For example, in Muncie, a brand new, four-bedroom house can be purchased for $256,000, which is significantly cheaper than in San Jose, California, where the same house would cost one-sixth as much.

The cost of living in 2024 is estimated to be 40 out of 50 points, with the top states receiving an A- grade.

The Consumer Price Index for the Midwest Region's East North Central Division increased by 2.2% in June.

Annual Homeowners Insurance (statewide): $1,007

Average Home Price (Bloomington): $489,491

Half Gallon of Milk: $4.78

Monthly Energy Bill: $206.98

5. (tie) Illinois

The median home price in Illinois is $301,900, which is relatively affordable even in pricey Chicagoland. In some areas of the state, like Decatur, homes are even cheaper. Additionally, Illinois is keeping insurance premiums low, with the cost to insure a median-priced home remaining under $1,000. However, this could change as both Allstate and State Farm are seeking approval for double-digit rate increases this year.

The Consumer Price Index for the Midwest Region's East North Central Division increased by 2.2% in June.

Annual Homeowners Insurance (statewide): $997

Average Home Price (Chicago): $540,091

Half Gallon of Milk: $4.87

Monthly Energy Bill: $206.98

4. Ohio

In Ohio, housing is affordable, including apartment rentals. A two-bedroom in Findlay costs approximately $921, which is a quarter of what it would cost in Honolulu. Additionally, Ohioans enjoy the fourth-lowest homeowners insurance premiums in the country, despite the state being at a higher risk of storm damage, according to data from the First Street Foundation.

The cost of living in 2024 is 42 out of 50 points, making it a top state.

The Consumer Price Index for the Midwest Region's East North Central Division increased by 2.2% in June.

Annual Homeowners Insurance (statewide): $845

Average Home Price (Lima): $459,420

Half Gallon of Milk: $4.62

Monthly Energy Bill: $200.81

3. Michigan

In Kalamazoo, Michigan, you can expect to pay only $74.50 for your yearly eye exam, which is significantly less than in Portland, Maine. Additionally, the Wolverine State boasts some of the most affordable housing in the country, with a two-bedroom apartment in Kalamazoo renting for approximately $837 a month. Living in Kalamazoo would be a fun experience, and for homeowners, their insurance premium on a median-priced home is just $905 a month, which is eye-popping!

The cost of living in 2024 is expected to be 44 out of 50 points, with the top states receiving an A+ grade.

The Consumer Price Index for the Midwest Region's East North Central Division increased by 2.2% in June.

Annual Homeowners Insurance (statewide): $905

Average Home Price (Detroit): $519,288

Half Gallon of Milk: $4.84

Monthly Energy Bill: $180.47

2. Iowa

If you have a keen eye for bargains, you are likely aware of The Hawkeye State, which was ranked as the state with the lowest cost of living last year. However, this year it has slipped to second place due to an increase in insurance premiums. Although they are still relatively low, they have been rising in response to Iowa's growing risk of storms, tornadoes, and fires. Despite this, prices for other basic goods remain affordable. Would any self-respecting Iowan purchase frozen corn? It is certainly inexpensive, with a bag costing just $1.56, which is about 30% less than what you would pay in Chicago.

Annual Homeowners Insurance (statewide): $926

Average Home Price (Ames): $403,253

Half Gallon of Milk: $4.72

Monthly Energy Bill: $182.60

1. West Virginia

In West Virginia, a loaf of bread is 36% cheaper than in Fort Lauderdale, Florida, and a four-bedroom house in Charleston costs about a quarter of the price of a similar home in Seattle. The West Virginia Economic Development Department highlights the low living costs in its pitch to businesses.

The agency's web site states that employees will benefit from low living costs since the cost of living in the area is 12% lower than the national average.

The implication is clear: West Virginia's low cost of living allows companies to pay lower wages than they would in a more expensive state. According to the U.S. Bureau of Labor Statistics, West Virginia's average hourly wage of $25.10 in 2023 was the third lowest in the nation.

In America's cheapest state to live in, your money will go a whole lot further.

The cost of living in 2024 is expected to be 46 out of 50 points, with the top states receiving an A+ grade.

The Consumer Price Index for the South Atlantic Division in South Region increased by 2.9% in June.

Annual Homeowners Insurance (statewide): $920

Average Home Price (Morgantown): $367,599

Half Gallon of Milk: $4.56

Monthly Energy Bill: $178.61