Could the Cost of Living Plummet in Any State Under Trump’s Presidency?
Written by
Heather Taylor
Edited by
Chris Cluff
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
As Donald Trump becomes president, the financial livelihood of millions of Americans is counting on the next Trump era to deliver on its campaign promises. Frustration over the cost of living in particular continues to be an ongoing issue. According to a survey from AP VoteCast, eight in 10 voters are somewhat worried about the cost of housing, gas and healthcare in America.
Would it be possible to see the cost of living plummet in any state under Trump’s coming term? GOBankingRates spoke to Rachel Lawrence, head of advice at Monarch, to find out where the cost of living could receive possible reductions.
Could the cost of living decrease in any state under a Trump presidency?
Lawrence: It’s unlikely overall, but possible in specific cases. Policy changes such as deregulation or tax cuts could marginally reduce costs in certain areas like energy or housing in states that already have low taxes and fewer regulations, such as Texas or Florida. The cost of living in many states might actually go up if federal benefits go down without a decrease in federal tax rates, if states want to try to make up the difference.
Are there any states that could be cheaper to live in?
Lawrence: States with resource-driven economies, like Texas, or states with a strong focus on business-friendly policies, such as Tennessee or Florida, could see small reductions in energy or housing costs due to relaxed federal regulations or tax incentives.
Additionally, states with deregulated utility marketplaces (where you can “shop” for providers) might see costs go down if certain types of utility resources (energy especially) are more readily available.
What, specifically, might become more affordable for residents?
Lawrence: Energy costs might decrease due to deregulation in industries like oil and gas. Housing costs could stabilize or drop slightly if federal policies incentivize building or reduce barriers for development.
If you cannot project any states becoming cheaper to live in under a Trump presidency, why is that?
Lawrence: The cost of living is primarily driven by local factors — state and city policies, supply-demand dynamics and infrastructure. Federal policies have limited impact, and any benefits from tax cuts or deregulation might be offset by inflation (especially if tariffs are implemented), rising interest rates or other economic pressures outside presidential control.
More From GOBankingRates
