Arkansas is known for its rich natural beauty and welcoming communities. People often move here for job opportunities, education, and peaceful living. This beautiful yet affordable state attracts everyone from all around the country and foreign nations. For those considering making this beautiful state their new home, understanding the cost of living in Arkansas is a crucial aspect.
In this article, we will guide you on various expenses and costs of living in Arkansas 2024. Take a look!
Cost of Living In Arkansas
The cost of living in Arkansas is the second-lowest among all states of the USA. According to a report, Arkansas's cost of living is approximately 14% lower than that of the rest of the nation. This affordability attracts people seeking lower housing costs, utility bills, and affordable groceries. Taxes in Arkansas are also relatively low, providing additional financial relief for residents.
How Much is the Cost of Living in Arkansas for Housing?
The median home sale price in Arkansas is approximately $238K. However, houses between $35K and $120K can be found in cities like Forest City, Camden, and El Dorado. Every year, more people buy homes in Arkansas.
For instance, 14,111 homes were listed for sale in Arkansas in May 2024. And, the number of newly listed homes was 4,468. It is up 4.9% year over year. However, housing prices can differ across various regions within the state depending upon various factors.
The state has low rental prices for those new to Arkansas and looking for rental options. You may need to pay between $600 to $4,640 for a two-bedroom apartment. The rent prices of many cities of the state are lower than the national average. It has the 55th highest rent in the country out of 56 states and territories.
What is the Average Expense for Monthly Food and Groceries in Arkansas?
Every human being needs food to live in. And, if half of your salary gets spent on food, it is very expensive, and living in such a city can put a big hole in your pocket. This is why you should live in a place where expenses for food and grocery are minimal. One such place is Arkansas. It is among the top 10 states with the cheapest expenditures for food and groceries in the US.
For instance, living in Forrest City, Arkansas, is budget-friendly. It offers affordable groceries, which is 9.7% lower than the national average.
Know Everything About Utility Bills in Arkansas
After food and groceries, utility bills are the next expenses that every household or tenant needs to pay for using electricity and water. In Arkansas, the utility bills are comparatively lower than in other states in the nation. Here, the average electric bill is about $142.97 per month, with an electricity rate of 12.88 ¢/kWh in 2024.
If you want to make utility bills zero or minimum, then installing solar panels in Arkansas is a great option. There are many solar companies in the state which install solar system as per your energy needs. One of the best solar companies in Arkansas is BLUETTI. They have high-quality solar panels and solar storage options. For example, you can choose BLUETTI AC300 + 1*B300 - a home battery backup for running your electrical appliances at night, during power cuts, or while traveling.
With the AC300 system, you can enjoy tons of energy that will power your building for smooth living. It can also be easily used to charge EV vehicles. By installing this power backup, you can enjoy dependable energy flow in Arkansas while making utility bills almost zero.
In addition, there is a complete solar kit such as BLUETTI AC200MAX + 2*B230 + 3*PV200. It is packed with 2048Wh ultra-durable LFP cells and a 2,200W full-power pure sine wave inverter. The AC200MAX allows up to 900W of solar input and 500W via the adapter, you can even charge it up via your wall outlet and solar panels simultaneously.
Understand the Expenses for Transportation, Healthcare, and Education in Arkansas
Transportation
For people who often travel for work, study, etc., transportation is an important component of the cost of living. In Arkansas, most people drive to work daily, but still, their cost of living in Arkansas is less compared to other states in the USA. According to data from Insure.com, the average car insurance premium in Arkansas is almost $1,034, less than the $1,517 national average.
Healthcare
In terms of overall healthcare expenses and health insurance, Arkansas is at number 35 out of all states nationwide. When you pay high costs for health insurance premiums, it may put you in stress as you have to manage all expenses to live. But, in Arkansas, you may get the best healthcare premium at affordable prices. The basic level of health insurance coverage is relatively low in Arkansas. For instance, for a family of four, the average healthcare cost is around $11,350 -- $1,600, which is less than the comparable national average of $13,000.
Education
Education costs in Arkansas depend upon institute type. Education costs is very lower in public institutes in Arkansas as compared to private schools. Also, there are financial aid, scholarships, and grants that can help students with affordable education. No matter how prices are different for different courses, overall education expenses in Arkansas are relatively lower than other institutes in the nation.
How Much Are Taxes in Arkansas?
Taxes are low in Arkansas, which makes it one of the most affordable states for both individuals and businesses. The state's progressive tax structure allows low-income populations to benefit from lower tax rates. Also, the people with higher incomes contribute a little more to state revenue.
Here, a person with earnings of $70,000 a year needs to pay a tax of around $10,815. In Arkansas, the average tax rate is 10.94%, and the marginal tax rate is 22%. Overall, Arkansas's approach to taxation makes it an affordable state with a low cost of living for everyone.
Why the Cost of Living in Arkansas is Low?
Wondering what makes the cost of living in Arkansas so low? Well, there are many reasons behind it. One of the main reasons is the availability of diverse and plentiful agriculture in Arkansas. This state produces local cotton, soybean, and cattle. They have in-house production for various food items, clothes, and other needed things. Thus, you can buy these products at lower rates in Arkansas without paying any import fees or transportation charges.
Another reason is the availability of building materials, which decreases the house costs in the area. The cost of land is also low, especially in small cities of Arkansas. Therefore, buying a home in the state is relatively easy than in other states of the USA.
The Place Where Cost Of Living Is Highest In Arkansas
In Arkansas, the cost of living of every city is different. Some have low, and some have high. Areas situated in the northwest corner of the state are a little expensive as compared to other cities in Arkansas. Places like Bentonville, Rogers, Fayetteville, and Springdale are expensive to live in. It is because of the industrial growth and economic growth. The influx of people in these areas caused a rise in housing, transportation, and overall living expenses.
But you can lower your cost of living in these cities by switching to solar solutions for all your energy needs. For example, you can use BLUETTI 2*AC300 + 4*B300 + 1*P030A + 6*PV200 | Solar Generator Kit to power your house. It can support up to 4×B300 (3,072Wh per pack) battery modules for a groundbreaking capacity of 12,288Wh. You can fulfill your family's power needs for a day, during power cuts, or at night.
This will help lower your utility bills while improving the cost of living in expensive areas of Arkansas. The inverter of this solar kit can adjust the charging rate from 1800W to 3000W. Moreover, by using the BLUETTI Smart Home Panel, you can tie the AC300 power system to your home grid.
Bottom Line
So, now that you know the cost of living in Arkansas, you can make a decision whether you want to move to Arkansas or not. Life in Arkansas isn't all about low utility bills, less healthcare premiums, or low food costs. It is also about living in a state that has many beautiful sceneries, parks, and well-maintained infrastructure.
With the availability of sunlight, you can use solar panels to convert sunlight to electricity to run your home. This will further lower your cost of living in Arkansas. BLUETTI is one of the leading solar providers in the area and offers the best solar generator kit to meet your needs.
