West Virginia has recently received accolades as the most affordable state for family bills. It’s the third year in a row that’s held the top spot, according to new research. In West Virginia, the share of essential household bills costs $1,149 per month. This figure is 44% below the U.S. median. This ranking solidifies West Virginia’s status as the cheapest state to live in for 2024, with a score below 100 on doxo’s index, which uses 100 to represent the national average.
The study found that West Virginia provides some of the lowest costs of living of any state in the country. The state’s affordability stands in stark contrast to California, which has recently reclaimed the title of the most expensive state for household bills. California did unseat Hawaii, with monthly household bills eating up 33% of the state’s average annual income of $104,029.
In California, the financial burden on households is acute. Their annual bills are $9,588 above the U.S. median. Fueling that boom are the costs associated with homeownership, averaging $24,695 per American household annually. That’s the equivalent of 13 critical bills, like rent and mortgage payments. What’s more, the median mortgage payment nationally is now $1,775 while the median rent is just $1,453.
West Virginia is number one for affordability. Those non-metro states’ neighbors of Mississippi, Oklahoma, Arkansas and New Mexico have costs of living 10 percent or more below the national average. Steve Shivers, an economic consultant, discussed West Virginia’s place in the national economic picture.
“West Virginia is remarkable because the cost of bills is still lower than any other state and it’s no surprise. It’s a state where the cost of living is lower but its economy is still struggling. It suffers from trying to create diversity beyond some traditional industries.” – Steve Shivers
Enhancing the quality of place that West Virginia has, low cost of living. The state continues to face economic weaknesses that limit its future earnings potential. Despite these issues, the state’s cost of living is like a magnet pulling in new residents. It still attempts to ensure a diversified economy.
There are a number reasons for California’s high costs. The housing market is hyper-inflated, and costs for everything from food to utilities are soaring. Shivers elaborated on California’s situation:
“California is sort of a double-edged sword. You’ve got the high housing costs, and on top of that, every single category of bills in California is higher than the national median.” – Steve Shivers
He emphasized the shifting economic environment that consumers face today:
“We’ve got a different economic environment than we had two or three years ago, most acutely in the categories that impact consumer debt because interest rates are different.” – Steve Shivers
As consumers adjust their spending habits in response to rising costs and interest rates, Shivers noted that caution will guide their financial decisions:
“The cost of mobility is much higher. People have to be a lot more careful and thoughtful about discretionary spending. The debt categories have shifted so dramatically that starting a new significant purchase is something that most consumers, especially right now, with a lot more uncertainty, are going to be much more conservative about.” – Steve Shivers