10 States With the Lowest Cost of Living

3) Alabama

Alabama has a unique disparity in income levels, as well as several variables within those levels that make it a relatively inexpensive place to live. First, Alabama has a rich collegiate history which brings in hundreds of thousands of young students every year. In addition, low cost of homes and tax rates make Alabama attractive to retirees who can live in a warm climate with low cost of goods. Both of these populations drive the need for affordable homes.

However, on the other hand, Alabama is also known for a host of some of the countries priciest zip codes, with equestrian estates and a haven for executive retreats. However, it is the bottom portion of the income scale from the two prior populations that drive everything from house prices to doctor bills in one of the most affordable places in the country.