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Study reveals best and worst states to live in to beat inflation, Mississippi tops the best

As inflation in the US surges to historic highs, Americans may be looking to find 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 leads the way on the list of the 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, with some of the factors being 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

United States consumer inflation prices jumped to 9.1 percent in June to reach a 41-year high

United States consumer inflation prices jumped to 9.1 percent in June to reach a 41-year high

The United States is experiencing one of the highest inflation rates among developed countries, with the federal government reporting on Tuesday that inflation climbed to a 41-year high of 9.1 percent last month.

The consumer price index, a broad measure of goods and services in the nation, soared above the 8.8 percent Dow Jones estimate, with Moody’s Analytics Senior Economist Ryan Sweet calculating that the average American family coughed up an extra $493 last month, according to the New York Post.

While the cost of housing isn’t the only indication of a state’s affordability, it is a good place to start for potential movers.

A comparison of Manhattan, Kansas, and Manhattan, New York, shows a startling difference in affordability between the states. 

In contrast, the price of an average home in Manhattan, Kansas is $176,000 and the average cost to rent is a stunningly low $860. 

The cost of an average home in Manhattan, New York is around $1.4 million, while the average cost to rent an apartment is around $5,000, the highest its ever been. 

The average rental price hit $5,058 last month, up from $4,975 the month prior, and increasing by 29 percent since last June, when the average was only $3,922, according to a new report from real estate brokerage firm Douglas Elliman.

The hike in interest rates directly affect mortgages, which Julia Segal, leasing director at the brokerage firm Compass said was driving the decline of home purchases in New York.

‘Interest rates rising is certainly turning some buyers into renters,’ Segal told Bloomberg, ‘and that’s increasing the renter pool.’

The competition is only exacerbated by a decrease in supply, as the listing for apartments in Manhattan continue to remain low.

In June 2021, there were about 11,853 units listed for rent in the city, but that number has plummeted by more than 45 percent to about 6,433 last month.

A cooldown for Manhattan isn’t expected until September, but even then, significant drops to the rental prices are not forecasted. 

Gas prices have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.66 nationwide as of Tuesday

Gas prices have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.66 nationwide as of Tuesday

The average rental price in Manhattan hit an all-time-high of $5,058 last month, with median rent, the mid-point value of the total price sample, also breaking records at $4,050-a-month

The average rental price in Manhattan hit an all-time-high of $5,058 last month, with median rent, the mid-point value of the total price sample, also breaking records at $4,050-a-month

President Biden has tried to reassure Americans that the United States is ‘in a stronger position than any other in the world to overcome this inflation.’

‘While today’s headline inflation reading is unacceptably high, it is also out-of-date,’ Biden said, referencing that prices at the pump have fallen by 40 cents since mid-June. ‘Those savings are providing important breathing room for American families. 

Officials have blamed the record-high inflation rate on the ongoing crisis in Ukraine and a rise in demand.

According to a report by the San Francisco Federal Reserve at the end of June, ongoing supply issues account for about half of the run-up in current inflation levels following COVID-related shutdowns and amid a nationwide labor shortage. And it reported that only about one-third of the United States’ inflation was demand-driven.

Some economists had therefore held out hope that inflation might be reaching or nearing a short-term peak before the consumer price index was released on Wednesday.

Gas prices, for example, have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.66 nationwide as of Tuesday – still far higher than a year ago but a drop that could help slow inflation for July and possibly August.


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