10 States That Frugal Americans Are Moving To

As consumer prices rise, many Americans are packing their bags and moving to places where they can stretch their money further.

Moving company United Van Lines released its latest annual National Movers Study, which is based on the Unigroup network’s (parent company of United Van Lines) data on household moves handled by the group in the 48 contiguous states and Washington, D.C.

They found that, although fewer Americans relocated in 2023 than they did in 2022, affordability has remains a major consideration for some residents moving out of state.

“We are continuing to see the trend that Americans are moving to more affordable, lower-density areas across the country,” Michael A. Stoll, economist and professor in The Department of Public Policy at the University of California, Los Angeles told United Van Lines. “Some Americans may be faced with economic uncertainty, coupled with an increased cost of living and lack of affordable housing.”

The United Van Lines analysis ranked states based on the percentage of people moving to a given state in 2023 who cited an improved cost of living as their main reason for the move. And most of the states on this list have a cost of living that sits comfortably lower than the national average. So if you’re thinking of making a big move, you might want to consider the following states.

New Mexico

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5%

Estimated state population: 2.1 million as of 2023

In the third quarter of 2023, New Mexico had an overall cost-of-living index of 93.9, compared with the national average of 100, according to the Missouri Economic Research and Information Center. The state’s housing cost index was 87, utilities 92.8, and health care 98.4 — putting all of its major living costs below the national average.

New Mexico’s state and local tax burden is also lower than half the country with a rate of 10.2% as of 2022, according to a Tax Foundation analysis of income, property and sales taxes, among other types of state and local taxes.

Georgia

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5%

Estimated state population: 11 million as of 2023

Georgia had an overall cost-of-living index of 90.9 in the third quarter of 2023, meaning its cost of living is 9.1% below the national average. Its housing cost index was 77.8 and its utilities cost 88.3. Georgia’s grocery cost index was 97.5 and its health care cost 99.5.

The Tax Foundation ranked Georgia as No. 8 in the country based on its state and local tax burden of 8.9% as of 2022 — lower than any other state on this list.

Utah

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.1%

Estimated state population: 3.4 million as of 2023

Utah’s overall cost of living was actually 4.5% higher than the national average, with an index of 104.5, in the third quarter of 2023. Its housing cost index was 113.6. But its utilities index was below the national average, at 97.7, as were its health care costs (91.5) and its grocery costs (99.7).

With a state and local tax burden of 12.1% as of 2022, the Tax Foundation ranked Utah 40th out of the 50 states, meaning these taxes are more burdensome in Utah than most other states.

United Van Lines notes that Utah was a “balanced” state in 2023, meaning the number of inbound and outbound movers was about the same.

Arkansas

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.2%

Estimated state population: 3 million as of 2023

Arkansas had an overall cost-of-living index of 88.5 in the first quarter of 2023 — making it the seventh-cheapest state in the country. Its utilities cost index was 91.5 and its housing cost index was 73.4, 26.6% lower than the national average. Arkansas’ grocery cost index was 94.8, and its health care cost index was 85.8.

Arkansas’ 2022 state and local tax burden is tied with New Mexico’s at 10.2%.

Louisiana

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.5%

Estimated state population: 4.5 million as of 2023

Louisiana overall cost of living ranked 10th in the nation in the third quarter of 2023, with an index of 90.7, compared to the national average of 100. Its housing cost index was 80.5 and its utilities cost index 83, both comfortably lower than average. The state’s grocery costs had an index of 94.2 and its health care costs were a bit higher at 99.3.

Louisiana’s state and local tax burden was the 12th-lowest in the U.S. in 2022, with a rate of 9.1%.

Nebraska

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.6%

Estimated state population: 1.9 million as of 2023

Nebraska had a cost-of-living index of 91 in 2023’s third quarter. Its housing costs had an index of 78.1 — a whopping 21.9% cheaper than the national average — and its utilities cost index was 87.8. Its grocery cost index was 95.6, with its health care costs at 99.7.

Although its cost of living ranks 12th in the nation, Nebraska’s state and local tax burden ranked 38th in 2022 at 11.5%.

Tennessee

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.9%

Estimated state population: 7.1 million as of 2023

Tennessee had an overall cost-of-living index of 90.4 in the third quarter of 2023. Its housing cost index was 82.2 and its utilities cost 93.

Tennessee also has some of the lowest taxes. Its 2022 state and local tax burden of 7.6% was the third-lowest in the nation. What’s more, several of its counties have some of the lowest property taxes in the nation, and the state has no earned-income taxes.

Iowa

Inbound movers who cited better living costs as their top reason for moving here in 2023: 5.9%

Estimated state population: 3.2 million as of 2023

Iowa had an overall cost-of-living index of 89.9 in the third quarter of 2023, the eighth-lowest in the U.S. Its housing cost index was 72.6 and its utilities 95.7. Iowa’s grocery costs index was 96.3 and its health care cost index slightly above the national average at 101.4.

Its state and local tax burden ranked 34 out of the 50 states, at 11.2% in 2022.

South Carolina

Inbound movers who cited better living costs as their top reason for moving here in 2023: 6.4%

Estimated state population: 5.3 million as of 2023

South Carolina’s overall cost of living was the 22nd-lowest in the county, with an index of 94.3, in the third quarter of 2023. Its housing costs had an especially low index of 80.7, though its utilities cost index was 12% above the national average, at 112. Its grocery costs had an index of 98 and health care costs had an index of 91.8.

South Carolina’s state and local tax burden was 8.9% in 2022, putting it in 9th place.

Alabama

Inbound movers who cited better living costs as their top reason for moving here in 2023: 7.2%

Estimated state population: 5.1 million as of 2023

Alabama had an overall cost-of-living index of 88.2 in 2023’s third quarter, the fifth-best in the country and the lowest of any state on this list. Its housing cost index was 70.5 and its utilities 101.8 — meaning housing costs are 29.5% lower than the national average and utilities costs 1.8% higher. Alabama’s grocery cost index was 95.8 and its health care cost index 85.8.

Alabama’s state and local tax burden of 9.8% in 2022 put the state at 20th in the nation for those types of taxes — close to the middle of the pack. But like in Tennessee, a few Alabama counties have some of the lowest property taxes in the nation.