I was away on business this past week and I couldn’t help but notice how the cost of living was different in Georgia compared to the Midwest. The first thing I noticed was gas that was $.10-.15 cheaper at every gas station. That isn’t a lot on the surface, but when you add up a year’s worth of gas, it is a nice savings.
I also ate out pretty much every meal, and not counting the chain restaurants, meals were about $1-3 cheaper on average. Again, not a whole lot of money per sitting, but it can make a large difference over the course of a year (depending on how often one eats out).
I only went into one grocery store, and that was only to buy a few items for my hotel room. It really wasn’t enough to make a complete comparison, but when I went shopping at our local Kroger yesterday, I compared prices. The few items I purchased in GA were a little cheaper there.
I also had the opportunity to visit the house of a business associate in GA. It was a beautiful house that would cost at least $100,000 more in a comparable area where we live. It can be difficult to compare house prices in different states and areas, but based on the house hunting my wife and I have been doing lately, there is no way we can afford a similar house here. But we would be able to afford it down there (assuming our salary levels remain the same).
These are just a few observations, and is by no means a scientific comparison. Mostly, I think the differences in gas and food prices are because taxes and labor or lower in the South. I think houses are cheaper because land and labor are cheaper. For the most part, people also earn less in those areas, so I’m sure it evens out in the long run.
I remember visiting my brother in San Diego last year, and a trip to NY City the year before. Those places are great places to live, but they are pretty darn expensive too! I guess I’ll be satisfied to live somewhere right in the middle. 
