As inflation in the United States rises to historic highs, Americans may seek to find out which states are the cheapest to live in, while avoiding those that are the most expensive.
Mississippi tops the cheapest states to live in, followed by Kansas, Alabama and Georgia.
Hawaii tops the list of most expensive places to live, followed by New York, California and Massachusetts.
According to CNBC, states are ranked based on an index of prices that covers various goods and services.
The study includes empirical data that creates a ranking system where some of the factors are a state’s infrastructure, economy, workforce and cost of doing business.
A map of the best and worst states to live in to beat inflation as homeowners and renters consider their options amid rising costs
US consumer inflation prices jumped to 9.1 percent in June to reach the highest level in 41 years
The United States is experiencing one of the highest inflation rates among developed countries, and the federal government reported on Tuesday that inflation rose to its highest level in 41 years at 9.1 percent last month.
The consumer price index, a broad measure of goods and services in the country, rose above the Dow Jones estimate of 8.8 percent, with Moody’s Analytics senior economist Ryan Sweet calculating that the average U.S. family coughed up another $ 493 last month, according to the New York Post .
While housing costs are not the only indication of a state’s affordability, it’s a good place to start for potential movers.
A comparison between Manhattan, Kansas and Manhattan, New York, shows an astonishing difference in affordability between states.
In contrast, the price of an average house in Manhattan, Kansas is $ 176,000, and the average rental price is astonishingly low at $ 860.
The price of an average house in Manhattan, New York is about $ 1.4 million, while the average price for renting an apartment is about $ 5,000, the highest it has ever been.
The average rental price hit $ 5,058 last month, up from $ 4,975 the month before, rising 29 percent since last June, when the average was only $ 3,922, according to a new report from real estate firm Douglas Elliman.
The rise in interest rates directly affects mortgage lending, which Julia Segal, leasing director at the brokerage firm Compass, said was driving the decline in home purchases in New York.
“Rising interest rates are definitely turning some buyers into tenants,” Segal told Bloomberg, “and that’s increasing the rent pool.”
Competition is only exacerbated by a drop in supply, as the number of apartments in Manhattan remains low.
By June 2021, there were about 11,853 units listed for rent in the city, but that number has dropped by more than 45 percent to about 6,433 last month.
A cooling for Manhattan is not expected until September, but even then no significant fall in rental prices is expected.
Gas prices have fallen from the conspicuous $ 5 per barrel. gallon, which reached mid-June, averaging $ 4.66 nationwide from Tuesday
The average rental price in Manhattan reached a record high of $ 5,058 last month, with the median rent, the median of the total price test, also breaking records at $ 4,050 a month.
President Biden has sought to reassure Americans that the United States is ‘in a stronger position than anything else in the world to overcome this inflation.’
“While today’s headline inflation is unacceptably high, it is also outdated,” Biden said, referring to the fact that pump prices have fallen by 40 cents since mid-June. ‘These savings provide an important respite for American families.
Officials have blamed record high inflation for the ongoing crisis in Ukraine and an increase in demand.
According to a report by the San Francisco Federal Reserve in late June, ongoing supply problems account for about half of the rise in current inflation levels following COVID-related shutdowns and amid a nationwide labor shortage. And it reported that only about a third of U.S. inflation was demand-driven.
Some economists had therefore hoped that inflation could reach or approach a short-term high before the consumer price index was published on Wednesday.
Gas prices, for example, have fallen from the conspicuous $ 5 per barrel. gallon, which reached mid-June, averaging $ 4.66 nationwide from Tuesday – still far higher than a year ago, but a fall that could help curb inflation for July and possibly. August.