1. Arizona
Arizona boasts beautiful desert landscapes and, allegedly, low living costs. But the reality—especially in cities like Phoenix—is rising rent prices and housing demand outpacing supply, according to EJ Antoni of The Heritage Foundation. The influx of new residents has caused median home prices to skyrocket in recent years. Utilities are another sore spot; air conditioning is a necessity for much of the year, and those bills are no joke.
Water is also a growing concern in Arizona, both in availability and cost. As drought conditions worsen, municipalities are beginning to pass those costs to consumers. Transportation costs also mount in areas without good public transit. Living in Arizona is becoming less of a dry deal and more of a dry trap.
2. Texas
Texas has long been marketed as a haven for affordable living, with no state income tax and relatively low home prices—at least on the surface. But once you move there, you’ll find that sky-high property taxes can quickly eat up the savings. In places like Austin or Dallas, housing costs have surged in recent years, with median home prices jumping far above the national average, according to Joshua Fechter of The Texas Tribune. Add in rising utility bills during scorching summers and unpredictable winter storms, and it’s not quite the bargain it seems.
Plus, urban sprawl means long commutes, which come with heavy gas bills and car maintenance costs. Public transportation isn’t reliable in most cities, so owning a car is non-negotiable. Healthcare costs are also higher than the national average in many Texas metro areas. So while the upfront numbers look good, the lived reality tells a different story.
3. Florida
Florida is often pitched as a low-cost paradise, especially for retirees drawn to the sunshine and lack of state income tax. But once you arrive, the high cost of homeowner’s insurance—driven by hurricanes and flooding—can be a rude awakening, according to Lillian Hernández Caraballo of WUSF. Insurance premiums have doubled in some areas over the past few years, and some insurers are pulling out of the market altogether. That leaves homeowners scrambling for expensive and less reliable coverage.
Housing prices in coastal cities like Miami and Tampa have soared, making affordable living a myth unless you’re far inland. And let’s not forget the hidden costs of cooling your home year-round in subtropical heat. Property taxes and HOA fees can also creep up quickly, especially in planned communities. Florida might look financially sunny, but the fine print adds clouds.
4. Tennessee
Tennessee often ranks as a low-cost state, with no income tax and relatively affordable housing. But fast-growing cities like Nashville and Chattanooga have seen double-digit increases in rent and home prices. While the rural areas remain cheap, job opportunities are largely centered in the cities—where prices are climbing. This imbalance makes affordable living hard to find unless you’re prepared for long commutes.
Healthcare in Tennessee is another downside, with limited access in rural areas and high premiums in urban centers, according to Dr. Katrina Green of Tennessee Lookout. Property taxes may be low, but sales tax is among the highest in the nation. And if you want to enjoy the amenities that make Tennessee appealing, like live music and great food, you’ll pay a premium. The Volunteer State might be volunteering you for hidden expenses.
5. Georgia
Georgia’s southern charm comes with the promise of affordability, but that varies wildly depending on where you land. Metro Atlanta, for instance, has seen rent and home prices spike dramatically since the pandemic. Traffic is notorious, and commuting eats up both time and money. You’ll probably need a car, and gas prices aren’t doing anyone any favors.
While rural areas are cheaper, job prospects there are often limited, pushing people toward higher-cost cities. Property taxes can also be a surprise, especially in counties surrounding Atlanta. Utility bills can climb in the hot, humid summers when air conditioning runs nonstop. Georgia may seem budget-friendly at first, but the small print stacks up.
6. North Carolina
North Carolina markets itself as a balanced blend of affordability and quality of life, especially with its growing tech and finance hubs. But places like Raleigh and Charlotte have experienced rapid population growth, pushing up housing prices and rent. What used to be a well-kept secret is now a hot ticket—and it’s priced like one. The influx has also strained infrastructure, leading to rising costs in transportation and utilities.
Property taxes might be moderate, but increasing demand for services means they’re creeping up. Public transportation is lacking in most cities, so a car—and the costs that come with it—is essential. Health insurance costs in North Carolina are higher than in many other states, especially for those not covered by large employers. It’s a state where affordability is quickly becoming a memory.
7. Colorado
Colorado’s natural beauty draws people in, but the cost of enjoying it is becoming steep. Denver and Boulder have seen massive spikes in housing prices over the past decade, and rent isn’t far behind. Even smaller towns that were once affordable are catching up fast due to increased demand. That “low” cost of living ranking from a few years ago? It’s outdated.
Utility costs rise with the extreme winters, and snow removal and heating aren’t cheap. Recreational opportunities may abound, but lift tickets, gear, and park fees aren’t budget-friendly. Groceries and dining out also run higher than the national average in many areas. Colorado might feed your soul, but it’ll also drain your bank account.
8. Idaho
Idaho has experienced an unexpected population boom, particularly in cities like Boise. Once known for low living costs, the housing market there has exploded—driven by out-of-state transplants. In just a few years, median home prices have doubled in some areas. The result? Wages haven’t kept up, and locals are getting priced out.
Rural areas are still relatively affordable but come with limited healthcare and job opportunities. Utilities and groceries have also climbed in price due to demand and supply-chain issues. Transportation costs are high since public transit is nearly nonexistent outside major cities. Idaho’s secret is out—and it’s expensive.
9. Nevada
Nevada, especially outside of Las Vegas, was once considered a budget-friendly place to live. But now, the Silver State is getting pricier by the year. Las Vegas housing prices have jumped dramatically, and rental demand has made it difficult to find affordable places. Add in higher utility bills from desert summers, and you start to feel the squeeze.
Water rates are also increasing due to long-term drought and conservation efforts. Nevada has no state income tax, which looks good on paper, but that revenue has to come from somewhere—often through higher sales and gas taxes. Insurance premiums are also above average, particularly for auto coverage in urban areas. Living here might be a gamble you weren’t ready for.
10. South Carolina
South Carolina often appears on “low cost of living” lists, but the reality depends heavily on where you live. Coastal areas like Charleston and Hilton Head are now luxury markets, with housing prices far above the national average. Inland areas may be cheaper, but they often lack access to good jobs, healthcare, and education. So people flock to the cities—where costs soar.
Property taxes are relatively low, but sales tax and fees on everything from vehicle registration to utilities can pile up. Health insurance premiums are high, especially for those in the private market. And climate change is bringing more frequent storms and flooding, raising insurance costs in vulnerable areas. South Carolina may look affordable, but you’ll pay for the postcard views.
11. Missouri
Missouri has a reputation for being affordable, but that affordability doesn’t always come with quality. In cities like St. Louis and Kansas City, property crime and underfunded infrastructure can affect quality of life. While housing may be cheap, homeowners often spend more on maintenance and security. Plus, utilities can be higher than you’d expect, especially in older homes that aren’t energy efficient.
Healthcare access in rural Missouri is limited, and costs are rising in urban areas. Public services like transportation and education are often lacking, leading to additional private expenses. Insurance rates—particularly car insurance—are on the rise. Missouri’s low prices sometimes come at a different kind of cost.
12. Alabama
Alabama’s cost of living is technically low, but wages are among the lowest in the country—so the math doesn’t always work out. In cities like Birmingham and Huntsville, housing is more affordable than in many parts of the U.S., but healthcare and utility costs are surprisingly high. The state also has one of the highest sales tax rates in the country. That adds up fast when you’re buying essentials.
Public schools and infrastructure can be underfunded, pushing families toward costly private alternatives. Car insurance premiums are above average due to higher rates of accidents and claims. And while property taxes are low, the lack of state investment in public services means you often have to cover more out of pocket. Alabama might look cheap until you try to thrive there.
13. Indiana
Indiana frequently lands on “low cost” lists, thanks to modest housing and rent. But outside of Indianapolis, wages lag far behind the national average, limiting purchasing power. Utilities are rising, particularly with harsh winters requiring high heating costs. Rural broadband access is also spotty, making remote work or digital learning more difficult—and often more expensive.
Healthcare costs are another issue, especially with limited options in smaller towns. Public transportation is minimal, so residents rely heavily on cars, and gas prices aren’t always low. Local taxes and fees can offset the benefits of low housing costs. Indiana may seem like a budgeter’s dream, but there’s a reason locals call it “sneaky expensive.”
