Money

These are the 15 cheapest states in America

VIDEO1:0001:00
These states have the highest cost of living in the US

Just as prices vary worldwide, the cost of living in the U.S. can vary drastically from state to state. While the cost of living is exorbitantly expensive in Hawaii and New York, it's far more affordable in Nebraska, Michigan and Alabama.

GOBankingRates ranked all 50 U.S. states and the District of Columbia according to cost of living to determine the most and least expensive places across the country.

To determine the order, GOBankingRates evaluates each state and Washington D.C. on six factors critical to the cost of living, using data from the Missouri Economic Research and Information Center. These metrics include housing, groceries, utilities, transportation, health care and miscellaneous expenses.

All of the data is then indexed in comparison to the average cost of living in the U.S. to determine if each state is more or less expensive than average and by how much.

These are the 15 cheapest states in America:

15. Iowa

Housing: 18.6 percent less expensive
Transportation: 3.3 percent less expensive
Groceries: 4.7 percent less expensive

Des Moines, Iowa
Eddie Brady | Getty Images

14. Georgia

Housing: 24.2 percent less expensive
Transportation: 6.7 percent less expensive
Groceries: 0.9 percent less expensive

Atlanta reflected in the lake of Piedmont Park.
Giorgio Fochesato | Getty Images

13. Nebraska

Housing: 14.7 percent less expensive
Transportation: 6.2 percent less expensive
Groceries: 3.8 percent less expensive

Omaha, Nebraska
Walter Bibikow | Getty Images

12. Alabama

Housing: 26 percent less expensive
Transportation: 7.1 percent less expensive
Groceries: 2.3 percent less expensive

Birmingham, Alabama.
Sean Pavorie | Getty Images

11. Missouri

Housing: 24.6 percent less expensive
Transportation: 6.6 percent less expensive
Groceries: 3.3 percent less expensive

Branson Missouri's downtown with waterfront.
JeremyMasonMcGraw.com

10. Kentucky

Housing: 19.5 percent less expensive
Transportation: 2.6 percent less expensive
Groceries: 11.1 percent less expensive

Kentucky Countryside
Getty Images

9. Texas

Housing: 15.5 percent less expensive
Transportation: 6.3 percent less expensive
Groceries: 10.5 percent less expensive

A Houston METRORail light rail train in Downtown Houston.
Davel5957 | Getty Images

8. Kansas

Housing: 22.6 percent less expensive
Transportation: 7.5 percent less expensive
Groceries: 6.4 percent less expensive

Wichita, Kansas
Davel5957 | Getty Images

7. Tennessee

Housing: 22.5 percent less expensive
Transportation: 10.1 percent less expensive
Groceries: 7.3 percent less expensive

Nashville, TN
Bruce Yuanyue Bi/Lonely Planet Images via Getty Images

6. Idaho

Housing: 77.8 percent less expensive
Transportation: 6.1 percent more expensive
Groceries: 14.6 percent less expensive

Boise, Idaho
Anna Gorin | Getty Images

5. Oklahoma

Housing: 23.3 percent less expensive
Transportation: 11.9 percent less expensive
Groceries: 7 percent less expensive

Tulsa, Oklahoma
Davel5957 | Getty Images

4. Arkansas

Housing: 22.3 percent less expensive
Transportation: 10.9 percent less expensive
Groceries: 7.3 percent less expensive

Hot Springs, Arkansas
Ionas Kaltenbach | Lonely Planet Images | Getty Images

3. Michigan

Housing: 22.9 percent less expensive
Transportation: 2.4 percent less expensive
Groceries: 10.4 percent less expensive

Detroit, Michigan
Paul Marotta | Getty Images

2. Indiana

Housing: 24.2 percent less expensive
Transportation: 8.4 percent less expensive
Groceries: 7.6 percent less expensive

In Indianapolis, the nation's 15th largest city, homeowners need only earn the median area income in order to afford the median priced home.
John J. Miller Photogrpahy | Getty Images

1. Mississippi

Housing: 31.6 percent less expensive
Transportation: 6.9 percent less expensive
Groceries: 5.4 percent less expensive

The historic district of Hattiesburg, Mississippi
Csfotoimages | Getty Images
VIDEO0:5900:59
Here's a breakdown of the cost of living in New York and London
make it

Stay in the loop

Sign Up

About Us

Learn More

Follow Us

CNBC.COM