Remote Workers Exploit 'Geo-Arbitrage' to Earn Big City Salaries While Living in Low-Cost States

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A new study from international shipping firm Seven Seas Worldwide has ranked all 50 U.S. states based on key costs that affect moving to and living in lower cost-of-living areas while earning salaries from high-income cities. The study found that states like Arkansas, Mississippi, and Oklahoma offer significantly lower costs for rent, utilities, and other expenses compared to expensive coastal hubs like California and Massachusetts, allowing remote workers to essentially 'geo-arbitrage' by earning big-city paychecks while enjoying a much lower cost of living.

Why it matters

The rise of remote work has enabled a growing 'geo-arbitrage' trend, where employees can live in lower-cost states while collecting salaries from high-income urban areas. This allows them to save aggressively and build wealth much faster than if they were living in the same high-cost cities as their employers. However, this trend also raises concerns about the widening economic divide between thriving tech hubs and struggling rural areas.

The details

The study examined six key costs that affect moving and living in different states: rent, home prices, utility bills, driver's license fees, car registration fees, and moving labor costs. It then ranked all 50 states, with Arkansas, Mississippi, and Nebraska topping the list as the most affordable states for remote workers to live in. In contrast, Hawaii, Massachusetts, and California were ranked as the most expensive states. For example, the average rent in Arkansas is just $1,093 compared to $2,837 in Massachusetts, while utility bills in Oklahoma are $407 versus $563 in Hawaii.

• The study was published in February 2026.
• According to the Bureau of Labor Statistics, there were almost 37 million people working from home in the U.S. as of November 2025.