As time goes by, the cost of living tends to increase. Some parts of the United States have higher costs of living than others, which depends on many different factors. Let's take a closer look at the cost of living in Arkansas...
According to bestplaces.net, the average cost of living in Arkansas is 84.3 on the cost of living index. This means that overall, the cost of living in Arkansas is less than the national average of 100. Out of all the factors taken into account in this average figure—grocery, health, housing, utilities, transportation, and miscellaneous—housing is the lowest factor. Housing costs in Arkansas scores 64 in comparison with the national average of 100 (costs registering over 100 are therefore higher than the national average).
The Clinton Library in Little Rock, AR
Another website provides 2016 data on a breakdown of different living costs in Arkansas. With housing for instance, the average monthly rent for a 900 square foot apartment or home in Little Rock ranges from about $850 to $1,095, and the monthly cost of utilities averages at about $120 for a small studio apartment.
According to recent cost-of-living research, the cost of living in Central Arkansas (Little Rock, North Little Rock, Conway, etc.) is generally about 3% below the national average, while the cost of healthcare in this area is above the national average. Average childcare, housing, and transportation costs, however, remain below the national average. Moving away from the metropolitan areas, the cost of living decreases to 4% below the national average and beyond. However, in Northwest Arkansas (Fayetteville, Springdale, Rogers, etc.), living costs average 7% below the national average. Pine Bluff and Jonesboro reflect a cost of living similar to the rural areas of Arkansas, which ranges from 10% -12% below the national average. In Arkansas’s rural areas, transportation costs are higher, but taxes, healthcare, childcare, and housing all remain below the national average.
Lake Hamilton in Hot Springs, AR
What does this all mean? Generally, it means that Arkansas offers a relatively low cost of living. A Talk Business & Politics article from 2015 explained that the cost of living in Arkansas is the second-lowest in the nation. This means that money earned in Arkansas “goes further than just about any other state.” Even with higher state sales taxes, people earning income in Arkansas have greater buying power than in other states and are able to afford better housing due to the lower housing costs. The only other state in the nation with a lower cost of living is Arkansas’s neighbor, Mississippi.
