May 10, 2023

Alabama secures a top title for lowest cost of living in the U.S.


1.7 min read

In times of economic uncertainty and record inflation, Alabamians may have something to be thankful for.

Residents of the Yellowhammer State, according to a new study by, have one of the lowest cost of living averages out of all 50 states – ranking 41st in average monthly spending. Household expenses in the state also turned out to be 13.4% lower than the recorded national average, which was $2,046.

The study also showed that most households in the Yellowhammer State pay an average of $1,772 per month with mortgages usually averaging $970, the rent averaging $868, and auto bills usually being $467.i

(Clark Tibbs/Unsplash)

The one area where Alabamians are paying a higher amount than the national average was in utilities with Alabama averaging $387 a month, and the national average being $351. Auto insurance was one of the more affordable areas with Alabama averaging $174 compared to the national average of $207.

Out of the 78 cities and towns surveyed, the highest cost of living in the state was found to be in Trussville, where the average cost of living was $2,423 per month. In Trussville, 29% of household incomes are used to pay for everyday household bills. Trussville is in the Birmingham metro where the average household pays $2,105 a month, or $25,264 a year for the 10 most common household bills, compared to the state average of $1,772 and the national average of $2,046.

Piedmont had the lowest cost of living in the state with an average of $1,160 per month in bills for each household. Household bills in the city usually average around 33% of the total income of local households.

The average cost of living in each city was reached by taking into account 10 common household bills: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet & Phone; Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.

The study also showed that collectively Alabamians pay $40 billion in household bills annually.

Find the original story here courtesy of Yellowhammer News.

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