When it comes to living affordability, not all cities are equal. In the past few decades at least, house and apartment prices have been climbing while wages seem to have stagnated. With increasing costs, exacerbated by the Covid-19 pandemic, it’s no wonder that many citizens are choosing to move out from expensive, metropolitan cities en masse.
A recent survey conducted by Gallup revealed that over 48% of the U.S population now prefers to live in small or rural areas as compared to bigger, more populace cities. The effect of the pandemic is suspected to have played a major role in this regard, as many workers in the United States were forced into unemployment. A study conducted by the Federation of American Scientists and the Congressional Research Service concluded that as of July 2021, the aggregate unemployment level remains over 5.4 million jobs below the pre-recession level observed in January 2020, with part-time workers experiencing an unemployment rate of 34.5%, while full-time workers experiencing rates of over 12.8 in April 2020.
Another key reason behind the relocations was observed to be the trends of rising rent and costs. According to Statista, the average monthly rent of large cities in the United States is estimated to be $1,124, which can cause a concerning dent in a person’s monthly income. Even massive multinational corporations sought refuge from rising costs and taxes, including Hewlett Packard Enterprise (NYSE: HPE), which moved its headquarters from San Jose, California, to Spring, Texas. This trend, along with the pandemic, has forced a sizable workforce to commence work remotely. Given this alternative, many people are choosing to move to cities that are more affordable for them, either out of dire necessity or simply as a change of scenery. According to a report, around 14 to 23 million Americans are either planning or have already moved, due to remote working opportunities, with over 52.5% planning to move to a location that is marginally more affordable than their current residence.
Furthermore, corporations like Facebook, Inc. (NASDAQ: FB), MasterCard Inc. (NYSE: MA) and Twitter Inc. (NYSE: TWTR), among others, have allowed their employees to work remotely for an indefinite period of time, while companies like Amazon.com, Inc. (NASDAQ: AMZN) and certain divisions of Microsoft Corporation (NASDAQ: MSFT) have allowed flexible hybrid workspaces, involving both, office and remote work.
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Our Methodology
Given these circumstances, finding a place to live that is easy on the wallet is not only a personal decision but a daunting one at that. With this in mind, let us now look towards the most affordable cities in America. The rankings on this list are based on a city’s cost of living (amount of money required to cover basic expenses) compared to the national average, making it our primary metric for evaluation. However, median household income, median home values, and the unemployment rate of a city will also be considered. We will be making use of data and information regarding these metrics provided by Salary.com’s Cost of Living Calculator, Payscale, Kiplinger, and the U.S Bureau of Labor Statistics.
30. Danville, Illinois
Cost of Living: 5.1% lower than the national average
Median Home Value: $68,337
Median Household Income: $36,172
Unemployment Rate: 4.2%
Located approximately 120 miles (190 km) south of Chicago and 90 miles (140 km) west of Indianapolis, Indiana, Danville is a city in, and the country seat of, Vermillion County, Illinois. Formerly a coal-mining center, the city’s economy is based on agriculture, heavy machinery, food processing and metal equipment. Known for its high quality museums, wildlife parks and historical memorabilia, Danville is a good alternative to big cities with housing costs 27.8% lower than the national average and transportation costs 17.5% lower than what the average American pays. Combined with a Cost of Living that is 5.1% below the U.S average, Danville, Illinois ranks 30th on our list of the most affordable cities in the United States.
29. Boise, Idaho
Cost of living: 5.3% lower than the national average
Median Home Value: $506,564
Median Household Income: $54,547
Unemployment Rate: 3.0%
Situated on the Boise River, Boise is the capital and most populous city in the state of Idaho, with a population of 229,993. Much of Boise’s growth is attributed to its agricultural expansion and the lumber industry during the 20th century. The city’s industries have since stretched out to include electronics trade, wholesale, and trucking, while high-tech industries accounting for a large proportion of the its growth. With large employers, including Micron Technology (NASDAQ: MU) and Albertsons Companies, Inc. (NYSE: ACI), the city has kept its job market at a healthy level, with an unemployment rate of only 3.0%. Known for its numerous city parks and historical landmarks, including the Boise National Forest, the city attracts a large number of tourists. With housing costs that are 23.5% lower than the U.S average and a Cost of Living that is 5.3% below the U.S average, Boise, Idaho, ranks 29th on our list of the most affordable cities in the United States.
28. Indianapolis, Indiana
Cost of Living: 5.5% lower than the national average
Median Home Value: $190,834
Median Household Income: $44,709
Unemployment Rate: 4.0%
Colloquially known as Indy, Indianapolis is the capital of the state of Indiana. Located at the geographical core of its state, Indianapolis is a transportation hub, within three to four hours of over have a dozen major cities. As a merged city-county, Indianapolis contains a large variety of urban, suburban and semi-rural neighborhoods. The city harbors one of the largest economic regions in the United States, based primarily on finance, manufacturing, education and healthcare, and wholesale trade. The city also contains notable markets in amateur sports and auto racing. With an unemployment rate of 4.0%, the city’s economy and job spheres are doing relatively well. Major corporations already operate in Indianapolis, including Eli Lilly and Company (NYSE: LLY), Anthem, Inc. (NYSE: ANTM) and Simon Property Group, Inc. (NYSE: SPG), three of the Fortune 500 companies. The city is also known as a major tourist spot, owing greatly to the largest annual single-day event in the world, the Indianapolis 500. With a Cost of Living that is 5.5% lower than the U.S average, Indianapolis is a great choice for relocation, and ranks 28th on our list.
27. Tampa, Florida
Cost of living: 5.6% lower than the national average
Median Home Value: $323,316
Median Household Income: $53,833
Unemployment Rate: 4.7%
Tampa, Florida, is a major city on the Tampa Bay, situated along Florida’s Gulf Coast. With an estimated population of 384,959, Tampa is the 3rd most populated city in Florida, behind Jacksonville and Miami. The city’s economy is driven by tourism, healthcare, finance, technology, construction and the maritime industry, with the Port Tampa Bay, the largest in the state, providing over $15 billion in economic growth. The city has housing costs that are over 7.3% lower than the national average, along with healthcare services costs that are over 20.4% cheaper than the national average. The average Cost of Living in Tampa is estimated to be about 5.6% lower than the U.S average, placing the city at the 27th spot on our list of the most affordable cities in the United States.
26. Baton Rouge, Louisiana
Cost of Living: 6.4% lower than the national average
Median Home Value: $200,680
Median Household Income: $40,948
Unemployment Rate: 5.8%
The ever-expanding capital of Louisiana, Baton Rouge is a major industrial, petrochemical, medical and technological hub, located right off of the Mississippi River. Baton Rouge is the third southernmost capital city in the United States, behind Austin, Texas and Tallahassee, Florida and is the cultural and economic center of the Greater Baton Rouge metropolitan area. Home to the Louisiana State University, the state’s largest institution for higher education, Baton Rouge has multiple major corporations participating in its economy, including ExxonMobil Corporation (NYSE: XOM). The transportation and healthcare costs in Baton Rouge are 21.3% and 16.8% lower than the national average respectively. Combined with a Cost of Living that is 6.4% lower than the U.S average, makes the city a decent choice in terms of affordability, ranking it 26th on our list.
25. Tulsa, Oklahoma
Cost of living: 6.5% lower than the national average
Median Home Value: $155,130
Median Household Income: $55,517
Unemployment Rate: 3.1%
Located on the Arkansas River between the Osage hills and the foothills of the Ozark mountains, Tulsa is the second largest city in the state of Oklahoma, with a population of 402,742, with an annual growth rate of 0.19%. Once known as the ‘Oil Capital of the World’, Tulsa’s economy has historically been fueled by its robust energy sector. Today, its economy has diversified, with leading sectors including finance, aviation, telecommunications and technology. Considered the cultural and arts center of Oklahoma, Tulsa houses two art museums and one of the nation’s largest collections of art deco architecture. With increasing job offers and better opportunities provided by large corporations including Cimarex Energy Co. (NYSE: XEC), the city’s unemployment rate has dropped considerably to 3.1%. With housing expenses 20.5% less than the national average, and a Cost of Living that is 6.5% below the U.S average, Tulsa ranks 25th on our list.
24. Birmingham, Alabama
Cost of Living: 6.6% lower than the national average
Median Home Value: $88,175
Median Household Income: $37,375
Unemployment Rate: 3.1%
Alabama’s most populous city, Birmingham is a city in the north central region of the state. Born into the iron and steel industry, ‘The Magic City’ has diversified its economy, with industries including banking, telecommunications, transportation, healthcare and education. Ranked as one of the most important business centers in southeastern United States, the city serves as headquarters to Regions Financial (NYSE: RF), one of the Fortune 500 companies. Boasting low unemployment rates, Birmingham also has housing and healthcare costs that are well below national averages, at 17.2% and 21.3% respectively. These, along with a Cost of Living that is 6.6% less than the U.S average, place Birmingham at 24th on our list of most affordable cities in the United States.
23. Oklahoma City, Oklahoma
Cost of Living: 6.9% lower than the national average
Median Home Value: $169,592
Median Household Income: $55,557
Unemployment Rate: 2.9%
Often known as OKC, Oklahoma City is the capital, and the largest city in the state of Oklahoma, with a population of 998,251 and a growth rate of 1.08% annually. The city’s economy, once simply a regional center of government and energy exploration, has since expanded to include the sectors of information technology, healthcare services and administration. Major corporations operate out of Oklahoma City, including two Fortune 500 companies: Chesapeake Energy Corporation (NASDAQ: CHK) and Devon Energy Corporation (NYSE: DVN). Due to multiple job opportunities, Oklahoma City boasts one of the lowest unemployment rate in the nation, at only 2.9%. With a Cost of Living that is 6.9% below the U.S average, and housing costs over 19% lower than the national average, Oklahoma City earns a spot on our list as the 23rd most affordable city in the United States.
22. Anniston, Alabama
Cost of living: 7.4% lower than the national average
Median Home Value: $104,704
Median Household Income: $36,051
Unemployment Rate: 4.2%
Located about 60 miles (95 km) east of Birmingham on the foothills of the Appalachian Mountains, Anniston is the county seat of Calhoun County. Known as ‘The Model City’ it is home to the National Museum of Natural History and the Berman Museum of World History, along with the Jacksonville State University nearby. With an economic sphere dominated by the Metal and Textile industries, Anniston has an unemployment rate of 4.2%, and housing costs 17.2% less than the national average. A Cost of Living that is 7.4% less than the U.S average ranks Anniston 22nd on our list.
21. Columbus, Ohio
Cost of Living: 7.5% lower than the national average
Median Home Value: $211,646
Median Household Income: $53,745
Unemployment Rate: 5.4%
Columbus is the capital and the most populous city in the state of Ohio, with a population of over 905,748, and is the second most populous city in the Midwest after Chicago. The city’s diverse economy is driven by its sectors in the education, government, banking, defense, aviation, energy and retail industries. Alongside being home to the Battelle Memorial Institute, the world’s largest private research institute, and the Ohio State University, the city acts as headquarters to many major corporations, including companies in the Fortune 500: Cardinal Health, Inc. (NYSE: CAH), Alliance Data Systems Corporation (NYSE: ADS) and American Electric Power (NASDAQ: AEP). Boasting healthcare costs that are over 26.4% lower than the national average, and a Cost of Living that is 7.5% lower than the U.S average, Columbus, Ohio, ranks 21st on our list.
20. Decatur, Alabama
Cost of living: 7.9% lower than the national average
Median Home Value: $160,808
Median Household Income: $48,429
Unemployment Rate: 2.5%
Located in the Morgan and Limestone counties along the Tennessee River, Decatur is a city in the state of Alabama. Grown to be the busiest river port on the Tennessee River, the Port of Decatur sees large amount of barge traffic, leading to several Fortune 500 companies to open plants in the city, including General Electric Company (NYSE: GE) and The 3M Company (NYE: MMM). The aviation and rocket manufacturing industries received a boost as well, due to the Lockheed Martin Corporation (NYSE: LMT) and the Boeing Company (NYSE: BA) receiving a contract under the United Launch Alliance to manufacture rockets in Decatur. The economic boom caused multiple job opportunities to emerge, dropping the unemployment rate to about 2.5%. Coupled with the city’s Cost of Living, 7.9% lower than the U.S average, Decatur comes in at the 20th place on our list.
19. Kansas City, Missouri
Cost of Living: 8.4% lower than the national average
Median Home Value: $201,278
Median Household Income: $54,194
Unemployment Rate: 4.4%
Kansas City is the largest city in Missouri based on population and area, with a population of 508,090. The city is home to multiple tourist attractions, ranging from beer and jazz festivals, theme parks, historical monuments and museums, including the Nelson-Atkins Museum of Art and the Kemper Museum of Contemporary Art. Although major corporations like H&R Block, Inc. (NYSE: HRB) and Cerner Corporation (NASDAQ: CERN) employ thousands of people, Kansas City’s largest employer is actually the federal government in the metro area. Despite being the hub for several federal jobs, Kansas City has kept its Cost of Living relatively low, at 8.4% below the U.S average, and housing costs at around 13.4% less than the national average. This ranks Kansas City 19th on our list.
18. Lynchburg, Virginia
Cost of Living: 9.3% lower than the national average
Median Home Value: $189,858
Median Household Income: $46,409
Unemployment Rate: 4.2%
Lynchburg is an independent city within the state of Virginia. Known as the ‘City of Seven Hills’, it is located at the foothills of the Blue Ridge Mountains along the banks of the James River. With an economy based on sectors of nuclear technology, pharmaceuticals and material handling, Lynchburg is also home to the Liberty University, the city’s largest employer. The job market in Lynchburg has been relatively resilient, with unemployment rates at 4.2%. The city has become increasingly more affordable throughout the years, with housing costs 11.1% less than the national average, and a Cost of Living that is 9.3% lower than the U.S average, placing Lynchburg at the 18th place on our list.
17. Kalamazoo, Michigan
Cost of living: 10.3% lower than the national average
Median home value: $192,525
Median household income: $41,774
Unemployment rate: 5.2%
Kalamazoo is a city in the southwest region in the state of Michigan with a population of over 325,000. A major international pharmaceutical and life sciences center, it is the headquarters of Stryker Corporation (NYSE: SYK), and home to the Western Virginia University, which is the city’s largest employer, with multiple campuses and research facilities. Overall Kalamazoo’s costs are what some would say ideal, with housing costs at a staggering 36.4% below the national average, alongside food and energy costs, running below the national average at 34.5% and 20.5% respectively. With a Cost of Living that is 10.3% lower than the U.S average, Kalamazoo ranks 17th on our list of the most affordable cities in the United States.
16. Des Moines, Iowa
Cost of Living: 10.4% lower than the national average
Median Home Value: $173,847
Median Household Income: $46,430
Unemployment Rate: 3.9%
Des Moines is the capital and the most populous city in the state of Iowa located on, and named after, the Des Moines River, with a population of 214,133. The city is a major center of the United States insurance industry, with a sizable financial services and publishing business base. The city’s job market has greatly benefited from the influx of major corporations setting up plants and branches in the area, including Wells Fargo & Company (NYSE: WFC) and Voya Financial (NYSE: VOYA), alongside headquarters of some Fortune 500 companies including Principal Financial Group (NASDAQ: PFG), thus keeping the unemployment rate at 3.9%. The Cost of Living in Des Moines has therefore decreased from the previous year to 10.4% below the U.S average, ranking Des Moines at 16th on our list.
15. Springfield, Missouri
Cost of Living: 10.5% lower than the national average
Median Home Value: $ 179,273
Median Household Income: $36,856
Unemployment Rate: 2.8%
Nicknamed the ‘Queen City of the Ozarks’, Springfield is the third largest city in the state of Missouri. Home to the Missouri State University, the city has multiple cultural offerings for both, residents and tourists, including Springfield Little Theatre and the Gillioz Theatre on Route 66. With an economy based around healthcare, manufacturing, retail, education and tourism, the city’s largest employers include the Missouri State University and Walmart Inc. (NYSE: WMT), reducing the unemployment rate to 2.8%. With a decent economy, a Cost of Living 10.5% lower than the U.S average and housing costs over 24.1% lower than the national average, Springfield ranks 15th on our list.
14. San Antonio, Texas
Cost of Living: 10.9% lower than the national average
Median Home Value: $226,665
Median Household Income: $53,751
Unemployment Rate: 5.4%
San Antonio is the second-largest city in the Southern United States, and the second most populous city in the state of Texas with over 1,434,625 residents. The city is a major tourist spot, with attractions including The Alamo and the San Antonio River Walk, attracting millions of tourists every year, substantially contributing to the city’s economy. Most of the city’s economy focuses primarily focuses on military, healthcare, financial services and tourism. Since the 21st century the city has become a significant location for American call centers. Headquarters to multiple Fortune 500 companies, including Valero Energy (NYSE: VLO) and NuStar Energy L.P. (NYSE: NS), San Antonio has a conglomerate of major corporations operating within the city. With a median household income of $53,751, the Cost of Living in San Antonio is 10.9% lower than the national average, ranking it 14th on our list.
13. Joplin, Missouri
Cost of Living: 11.3% lower than the national average
Median Home Value: $133,355
Median Household Income: $45,449
Unemployment Rate: 3.3%
Officially known as the City of Joplin, Joplin is situated in the Jasper and Newton counties in the southwestern corner in the state of Missouri. With a population of over 51,762, it’s the 12th most populous city in the state. Joplin’s industry strengths contributing to the economy include manufacturing, healthcare and social assistance, retail trade, mining and management enterprises, dropping the unemployment rate of the city to 3.3%. The housing costs within the city falls to 24.1% below the national average, with a Cost of Living 11.3% below the U.S average, placing Joplin at the 13th place on our list.
12. Seguin, Texas
Cost of living: 11.7% lower than the national average
Median Home Value: $257,549
Median Household Income: $49,039
Unemployment Rate: 6.0%
Seguin, a city in the state of Texas, is the county seat of Guadalupe County, in the San Antonio-New Braunfels metro area, with a population of little over 30,700. Located about 30 miles from San Antonio, the small city is one of the strongest manufacturing clusters in the region, and the lower cost of business, flexible real estate options relative to other cities in the region and close proximity to Port Corpus Christi and the Port of Houston. has made it a desirable spot for major corporations to set up branches, including the Caterpillar Inc. (NYSE: CAT). The city itself has relatively low costs for those looking to move there, with housing costs 18.2% less than what the average American pays, transportation costs 13.8% less, and energy costs 12.8% less. All these, combined with Seguin’s low Cost of Living, makes it a worthwhile location for those looking to move to more affordable locations, thus placing Seguin at the 12th spot on our list.
11. Morristown, Tennessee
Cost of Living: 11.8% lower than the national average
Median Home Value: $171,609
Median Household Income: $32,193
Unemployment Rate: 4.5%
Morristown is a small city in, and the county seat of, Hamblen County, in the state of Tennessee. Being centrally located in the East Tennessee region, the city serves as a center for a labor market area, bringing most of its labor from the nearby surrounding seven-county area. As of August 2020, Morristown has seen a rise in demand for single-family and multi-family residential development projects, reporting a 110% increase in the city’s residential construction of that same year. Considered one of the largest manufacturing and industrial hubs in Tennessee, the city has several industrial parks and facilities, including aerospace technology, food processing and plastic engineering among others. In terms of residential costs and amenities, Morristown is one of the most appealing on this list, with healthcare and housing costs running at 28.5% and 20.6% below the national averages respectively, while energy costs 16.7% below what the average American pays. With these costs in mind, Morristown comes in at 11th place on our list.
10. Fayetteville, Arkansas
Cost of Living: 11.8% lower than the national average
Median Home Value: $275,486
Median Household Income: $43,690
Unemployment Rate: 3.2%
With a population of over 94,000, Fayetteville is the second largest city in the state of Arkansas. Located on the outskirts of the Boston Mountains, within the Ozarks, it is the county seat of the Washington County. Home to the University of Arkansas, the state’s flagship university, and Fayetteville’s largest employer, the city has a rich cultural combination of a southern city, a college town and an Arkansas metropolitan area. Of late, the University of Arkansas has become a research driven university, with its stated goals to become the economic driver of the city and other regions, fueled by the presence of many corporations at the campus, including the multinational company Tyson Foods, Inc. (NYSE: TSN). Low residential costs for both families and students alike, including the low transportation and energy costs, running about 13.3% and 19.2% lower than the national averages respectively, along with a Cost of Living that is 11.8% lower than the U.S average, rank Fayetteville 10th on our list.
9. Texarkana, Texas/Arkansas
Cost of Living: 12.1% lower than the national average
Median Home Value: $137,716
Median Household Income: $45,080
Unemployment Rate: 5.9%
Situated in the Bowie County, in the Ark-La-Tex region, Texarkana, Texas, is a twin city with the neighboring Texarkana, Arkansas, located in the Miller County. The two cities had a combined population of over 66,000 in 2020, with a metropolitan area population of over 150,000. With an economy that is based on agriculture, the city also racks benefits of being a trading center, owing to the three major interstate highways that run through the city: Interstate 30 (I-30), Interstate 49 (I-49) and Interstate 69 (I-69). Additionally, the Red River Army Depot & Tenants comprise the largest single employer in the city. The twin cities of Texarkana make great spots for those looking to relocate to places with cheap residencies, owing to the city’s housing costs, which are an astonishing 36.5% less than the national average, placing Texarkana in the 9th spot on our list.
8. Wichita, Kansas
Cost of Living: 12.1% lower than the national average
Median Home Value: $159,767
Median Household Income: $52,620
Unemployment Rate: 6.2%
Located on the Arkansas River, Wichita is the largest city in the state of Kansas with a population of over 397,532, and is the county seat of the Sedgewick County. As an industrial hub, the city is a regional center of culture, media and trade, hosting several universities, museums, parks, theatres and entertainment venues, most notably of which is the Intrust Bank Arena, along with the Wichita State University, the third largest institution for higher education in Kansas. With a focus on manufacturing, primarily aircraft manufacturing, Wichita’s economy is dominated by the principal industrial sector, with the healthcare sector coming in as the second largest in the city, although it employs the most labor force out of all the city’s industries. Known throughout the U.S media as one of the most affordable and pleasant places to live, Wichita boasts housing costs that are a staggering 40.4% less than what the average American pays. Coupled with a Cost of Living that is 12.1% lower than the U.S average, Wichita is an excellent destination for relocation, and earns the 8th spot on our list.
7. Florence, Alabama
Cost of Living: 12.9% lower than the national average
Median Home Value: $141,798
Median Household Income: $40,526
Unemployment Rate: 3.6%
Florence is a city in, and the county seat of, the Lauderdale County in the state of Alabama. Located along the Tennessee River, it is home to the University of North Alabama, the state’s oldest college. Considered to be northwestern Alabama’s economic hub, the city has had significant development, with leading industries consisting of healthcare and social services, retail, and manufacturing. Tourism plays a significant part in the city’s economic growth as well. Although other costs, including transportation, energy and healthcare may not be significantly lower than that of the U.S average, the housing costs in Florence make all the difference, with costs that are around 55.7% lower than the national average, more than half of what an average American pays. This places Florence at the 7th spot on our list.
6. Hattiesburg, Mississippi
Cost of Living: 13.6% lower than the national average
Median Home Value: $156,341
Median Household Income: $34,735
Unemployment Rate: 6.1%
Hattiesburg is a city in the state of Mississippi. Located mostly within the Forrest County, it has an estimated population of over 46,000. Home to the University of Southern Mississippi, Hattiesburg is known as a center for the railroad and lumber industries and hosts several corporations that have branches in the city, including, the Coca-Cola Company (NYSE: KO) and the PepsiCo, Inc. (NASDAQ: PEP). Owing to a diverse economy, healthy neighborhoods, a central location in the south of Mississippi, and housing costs 25.4% less than the national average, Hattiesburg attracts many people looking to relocate or visit the city. With a Cost of Living that is 13.6% lower than the U.S average, Hattiesburg ranks 6th on our list.
5. Wichita Falls, Texas
Cost of Living: 14.8% lower than the national average
Median Home Value: $130,695
Median Household Income: $47,476
Unemployment Rate: 5.4%
Known as the ‘Gateway to Texas’, Wichita Falls is a city in the state of Texas that sits on the border with Oklahoma. Home to over three colleges and the Sheppard Air Force Base, the city has considerable economic diversity, with leading sectors including healthcare and social services, retail trade, accommodation and food services, and education providing the bulk of the working force. The city is one of the cheapest places to live in America, with an average rent of $725, compared to the average national rent of $1,124, and boasts one of the lowest housing rates, running at about 47.5% lower than the U.S average, earning Wichita Falls the 5th rank on our list.
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