Arkansas Named No. 2 Most Affordable State in the Nation

As affordability continues to shape where people choose to live and where businesses choose to invest, Arkansas remains one of the nation’s best values.

In the latest U.S. News & World Report Best States rankings, Arkansas was named the No. 2 most affordable state in the country. The affordability ranking is part of the publication’s Opportunity category and measures the cost of everyday life, including overall cost of living and housing affordability relative to the rest of the nation.

The ranking reflects two key measures: the Cost of Living Index and the Housing Affordability Index. Together, these metrics compare the price of everyday goods and services and the cost of housing against national averages, offering a snapshot of where residents can get the most value for their money.

Arkansas continues to stand out because the cost of living remains well below the national average. Lower housing costs, affordable utilities, transportation, and everyday expenses allow families to keep more of what they earn giving employers a competitive advantage when attracting and retaining talent. Governor Sanders and the Arkansas General Assembly have cut taxes by 25 percent in recent years to keep more dollars in Arkansans' pockets. Recent analyses also continue to rank Arkansas among the nation’s lowest-cost states, reinforcing the state’s reputation on a place where dollars go further.

Affordability is one of the many reasons Arkansas continues to attract new residents and new investment. Companies benefit from lower operating costs, while workers enjoy a higher quality of life without the high price tag found in many other parts of the country. From first-time homebuyers to growing families and entrepreneurs, Arkansas offers an opportunity to build a future where financial goals are more attainable.

Arkansas’ affordability advantage can also be seen in the purchasing power of its residents’ dollars. According to Visual Capitalist’s “The Purchasing Power of $100 by U.S. State” analysis, Arkansas ranks No. 1 in the nation, with $100 having the purchasing power of approximately $113. This means residents can get more value from their income and make their dollars go further on everyday expenses.

As more Americans prioritize affordability when deciding where to put down roots, Arkansas continues to prove that opportunity and value go hand in hand. Whether starting a career, growing a business or raising a family, the Natural State remains one of the best places in the country to make your dollar go further.