Moving to One of These 5 States Could Save You $6,000 or More per Year on Housing

Do you live in one of them?

Where you live has a serious effect on your lifestyle, not only in terms of what kind of jobs and hobbies are available to you, but also how much you spend each year. Housing is most people's largest expense, whether you rent or own, but some people pay thousands of dollars less than others. That's especially true for residents of these five states, which have the lowest average housing costs in the nation.

Five states with the nation's lowest average housing costs

The following five states have the cheapest average housing costs in the U.S., according to the Missouri Economic Research and Information Center (MERIC). Residents of each of these states pay at least $6,000 less for housing annually compared to the national average.

1. West Virginia
2. Mississippi
3. Alabama
4. Oklahoma
5. Kansas

The average home price in West Virginia is just $137,286, according to the Zillow Home Value Index (ZHVI), while the national average is $354,649. That's some pretty serious savings. And we're just talking about a monthly mortgage payment. West Virginian homeowners will likely save on related costs, like homeowners insurance, as well because it's usually cheaper to insure a less-expensive home.

But while homes and apartments in all the states above tend to be pretty affordable, location within the state matters as well. Those who live in urban areas typically pay more than those who live in rural areas. And even within a given city, there are usually parts of it that are more expensive than other areas.

Moving to one of the states above is an option if you're interested in reducing your cost of living and you aren't attached to your current home. But there's a lot to consider before you make that call. You should visit the area you plan to move to at least a few times in different seasons to see how you like it. You also need to weigh other factors, like the quality of its healthcare and the local job market, to see if it's a good fit for you. If that's not the case, there are still steps you can take to reduce your costs, no matter where you live.

How to slash your housing bill in any state

If you're in the market for a new home or apartment, shopping around is key. Consider looking at a smaller home or a more affordable neighborhood if you can't find any reasonable options in the neighborhood or price range you're considering.

Those who already have a mortgage could consider refinancing if doing so will save them money. However, interest rates on loans have risen recently so this may not be the best time to do that.

Renting out a home or an extra room is also an option. It's possible to offer short- or long-term rentals these days, depending on what works for you. There are companies, like Airbnb, that can help you connect with interested renters, and you can choose when to make your place available and when not to. For many homeowners, once they get their rental business up and running, there isn't a lot of maintenance required.

Renters have fewer options for reducing their housing costs other than looking for a new place to live. They may not be able to rent out their apartment, even on a short-term basis, if their rental agreement doesn't allow it. But they may be able to save on their renters insurance by shopping around or raising their deductible.

No matter what you do, you can expect a good chunk of each paycheck to go toward your housing expenses. But even if you only manage to save a few dollars each month, this will add up over time. And even if you aren't able to find a more affordable living situation right now, keep looking. Something may come up in time.