Empty States, Big Savings? The Cost of Living in America’s 9 Least Populated States
It’s no secret that prices for nearly everything have increased in recent years. A trip to the grocery store can easily set you back a few hundred dollars, and home prices may seem entirely out of reach, especially for first-time buyers. Higher prices have everyone on the hunt for deals, and you may even consider packing your bags and moving to another state that offers greater affordability and cost of living.
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Some sparsely populated states may seem like a bargain, especially if you’re willing to live in smaller towns and rural areas. Here’s a look at the nine least populous states and how they stack up based on total annual expenditures, per GOBankingRates data, and other cost of living figures.
Maine
Population: 1,395,722
Total annual expenditures: $80,191
Despite Maine’s relatively small population, it remains a costly state to live in — especially if you live in one of its bigger cities, like Portland. On average, Portland has a 15% higher cost of living than other states, per PayScale. Housing is particularly expensive, with homes approximately 25% more costly than the national average. However, you can find greater affordability if you’re willing to live in a smaller town, like Richmond or Sanford.
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Montana
Population: 1,132,812
Total annual expenditures: $75,083
Montana may be a good fit if you dream of wide-open spaces and outdoor activities. However, don’t expect any bargains. Montana’s overall cost of living is 22% higher than in other U.S. states, according to PayScale. The median home price in Montana cities is over $700,000 — a stunning 62% more than the national average. Groceries are another significant expense, about 7% higher than the national average. However, you can save on healthcare and utilities, which are 5% and 14% cheaper in Montana than in other states, respectively.
Rhode Island
Population: 1,095,962
Total annual expenditures: $80,774
As the smallest state in the U.S., it’s probably no surprise that Rhode Island has a relatively modest population size. However, what it lacks in people it makes up for in costs — which are sky-high in most Rhode Island cities. For instance, according to PayScale, Newport’s cost of living is a staggering 31% higher than the national average, driven by steep housing prices. Utilities in Newport are also costly, 25% more expensive, on average, than in other states. Other Rhode Island cities, including Warwick and Providence, are also pricey, with an average cost of living that’s 18% and 13% higher than the nationwide average, respectively.
Delaware
Population: 1,031,890
Total annual expenditures: $73,770
Delaware is the second-smallest U.S. state, with a relatively tiny population. However, its small size doesn’t mean residents can expect affordable prices. Delaware’s largest city, Wilmington, is 10% more expensive than the national average, according to PayScale. Healthcare, housing, groceries and transportation are much more costly than in other states. However, smaller cities like Dover and Harrington offer a better bargain, with an overall cost of living that’s just 2% more than the national average.
South Dakota
Population: 919,318
Total annual expenditures: $67,422
South Dakota is popular with nature lovers, especially those who love hiking, swimming and boating. It’s also a reasonably affordable place to live. Its largest city, Sioux Falls, has a cost of living that’s 8% below the national average, per PayScale. The median home price in Sioux Falls is $420,702 — about 7% less than in other states. Utilities, groceries and transportation in Sioux Falls also fall below the national average. You may save even more by moving to a rural town like Centerville, where the average cost of living is 24% cheaper than the national average.
North Dakota
Population: 783,926
Total annual expenditures: $69,027
North Dakota is another wallet-friendly state with a small population. Its largest city, Fargo, is 6% cheaper than the national average, as according to PayScale data. Housing in Fargo is 17% less expensive than in other states, with median home prices at $375,160. Utilities and transportation are also reasonably priced, but healthcare is 12% higher than the national average.
Alaska
Population: 733,406
Total annual expenditures: $91,355
Paradoxically, Alaska is the largest state in the U.S. but has one of the smallest populations. That’s likely because much of Alaska is uninhabitable due to its freezing Arctic climate. It may also be due to its exorbitant costs. One of Alaska’s largest cities, Anchorage, has an overall cost of living that’s 27% higher than the national average, per PayScale. Housing and groceries are particularly costly, averaging 37% and 25% more than in other states, respectively. Healthcare is also prohibitively expensive, with costs for doctor’s visits and medications 51% higher than the national average.
Vermont
Population: 647,464
Total annual expenditures: $84,131
Despite Vermont’s relatively small population, it remains one of the more expensive states to live in. Its cities, including Burlington and Milton, are significantly more costly than other states. According to PayScale, Burlington’s average cost of living is 16% higher than the nationwide average, primarily driven by high housing and utilities costs. Healthcare in Burlington is another costly expense, averaging 10% more than the national average. Milton doesn’t fare any better, with the average cost of living also being 16% higher than in other states.
Wyoming
Population: 584,057
Total annual expenditures: $67,422
Wyoming is a bargain compared with some of the other states on this list. In major cities like Cheyenne and Laramie, the cost of living is significantly lower than the nationwide average — especially if you’re looking for a new home. The median home price in Cheyenne is $404,469, sitting 10% lower than the nationwide average, per PayScale. Laramie offers even better housing deals, with a median price of $365,690, or 19% less than the nationwide average. Utilities in Cheyenne and Laramie are also much cheaper than in other U.S. cities.
All population data was sourced from the U.S. Census Bureau. All housing, grocery, utility and healthcare figures were sourced from PayScale.
Methodology: For this study, GOBankingRates analyzed the cost of living in every state across America by looking at the Missouri Economic Research and Information Center’s 2023 annual cost of living indexes and calculating the average costs using the Bureau of Labor Statistics 2023 Consumer Expenditure Survey across multiple factors including; (1) total annual expenditures; (2) annual grocery (“food at home”) expenditures; (3) annual housing (“shelter”) expenditures; (4) annual utilities (“utilities, fuel, and public services”) expenditures; (5) annual transportation (“”Gasoline, other fuels, and motor oil” + “other vehicle expenses”) expenditures; (6) annual healthcare expenditures; and (7) annual miscellaneous expenditures. Only factor (1) was used to determine final rankings. All data was collected and is up-to-date as-of May 23, 2024.
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This article originally appeared on GOBankingRates.com: Empty States, Big Savings? The Cost of Living in America’s 9 Least Populated States
