Here’s Why Living in North Dakota Costs Less Than You Think

If it feels like everything is getting more expensive lately… you’re not imagining it. A quick trip outside the Midwest can be all the proof you need.

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After traveling through Arizona, Nevada, and Utah, the sticker shock is real. Gas prices hovering around $4.99 a gallon and higher grocery bills can make anyone do a double-take. Groceries are way out of hand, and electricity rates are crazy. That said, it’s still the kind of experience that makes you appreciate what we have back home in North Dakota—and across our region.

According to a recent report from the Common Sense Institute, Midwestern states continue to rank among the most affordable places to live in the country. In fact, North Dakota stands out in a big way.

North Dakota ranked 3rd in affordability nationwide in 2025.
After covering essentials like housing, taxes, and insurance, a typical family of four still has 33.53% of their income left over—a strong number compared to much of the country.

Here’s how major expenses break down in North Dakota:

• Shelter & Utilities: 17.2%
• Groceries: 12.4%
• Health Insurance: 5.5%
• Car Insurance: 2.2%
• Gasoline: 2.4%

That’s a big reason why life here feels more manageable compared to higher-cost states like California or Massachusetts.

Read More: North Dakota Sees Sharp Rise In Auto Loan Delinquencies

And it’s not just North Dakota carrying the load—our neighbors are doing pretty well too.

• South Dakota ranked 2nd, with 34.57% of income remaining after expenses.
• Iowa actually took the #1 spot, with 34.71% left over.
• Minnesota and Montana landed in the middle of the pack at 21st and 22nd, still far more affordable than many coastal states.

What really stands out is how controlled costs are in our region—especially when it comes to housing, fuel, and insurance. Even when prices rise, they tend to rise slower here than in other parts of the country.

So yes, prices might feel like they’re getting out of hand—but perspective matters. Compared to much of the U.S., North Dakota and the surrounding Midwest remain a stronghold of affordability.

The next time you fill up your tank or check out at the grocery store, it might still sting—but it’s a lot easier to swallow knowing we’re living in one of the most budget-friendly regions in America.