West Virginia tops CNBC ranking of cheapest US states for 2026

West Virginia ranked as the least expensive US state in CNBC’s 2026 America’s Top States for Business cost-of-living category, scoring 43 out of 50 points. The ranking highlights a widening gap in household costs across states at a time when Federal Reserve Chairman Kevin Warsh has described persistent high prices as a burden on Americans.

CNBC said cost of living is one of 10 competitiveness categories in its annual state business study, accounting for 2% of each state’s total score under the 2026 methodology. The measure draws on a Council for Community and Economic Research index covering a broad basket of goods and services, alongside housing affordability for owners and renters and the cost of insuring a median-priced home.

For companies, lower household costs can affect hiring and compensation decisions. CNBC said cheaper states may be better positioned to attract workers and may face less wage pressure than higher-cost markets, although insurance and utility costs have begun to erode some of the advantage in parts of the Midwest.

West Virginia leads on housing affordability

CNBC ranked West Virginia first, citing the lowest average housing costs in the country. Nearly 81% of residents spend less than one-third of monthly income on housing, the best share among states, according to CNBC. The average three-bedroom rent was $1,726, while the average home price in Charleston was $274,429. The South region consumer price index rose 3.9% year over year in May.

CNBC also cited relatively low home insurance premiums in West Virginia. Everyday costs in the state included a monthly energy bill of $190.36, a dozen eggs at $3.98 and a loaf of bread at $3.68.

North Dakota, Alabama and South Dakota follow

North Dakota placed second with 41 points and an A+ grade in the cost-of-living category. CNBC reported an average three-bedroom rent of $1,908 and an average home price in Bismarck of $378,598. The state also had a $157.22 monthly energy bill, among the lower figures listed in the ranking.

Alabama and South Dakota each scored 38 points. In Alabama, CNBC cited the 10th-lowest rents as a share of median income, with average three-bedroom rent at $1,542 and an average home price in Anniston of $284,340. South Dakota’s average rent was $1,785, and CNBC said homeowners there had the fourth-lowest monthly payments nationally, based on ATTOM Data Solutions and US Census figures.

Midwest states remain inexpensive, with insurance pressure

Wyoming scored 37 points. CNBC reported annual homeowners’ premiums of $1,929, the 16th-lowest nationally, with Insurify projecting no increase this year. The state’s average three-bedroom rent was $1,791, and the average home price in Laramie was $449,444.

Indiana, Iowa and Kansas each scored 36 points. Indiana’s average home price in Kokomo was $293,267, while Iowa’s average home price in Burlington was $331,200 and Kansas’ average home price in Salina was $348,000. CNBC said Iowa has the second-lowest rent burden in the country, after Michigan, while Kansas has the third-lowest housing costs.

Insurance costs were a recurring pressure point. CNBC said Kansas homeowners’ premiums were the 10th-highest in the country last year, with Insurify forecasting a 4% increase this year. In Iowa, CNBC linked higher insurance stress to the aftermath of a 2020 derecho that caused more than $11 billion in Midwest damage, with the worst effects in eastern Iowa.

Ohio and Missouri completed the 10-state group. Ohio scored 35 points, with average three-bedroom rent of $1,565 and an average Cleveland home price of $388,116. Missouri scored 34 points, with average rent of $1,582. CNBC said Missouri insurance premiums were already the 13th-highest nationally and that Insurify projects a further 7% increase this year after severe storms, including a St. Louis-area tornado that caused $1.6 billion in damage.

This story draws on original reporting from CNBC.