10 of the Most Affordable Cities in the US | Better Mortgage (2023)

10 of the Most Affordable Cities in the US | Better Mortgage (1)


What You’ll Learn

How different cities can impact your overall financial goals

Which cities have lower costs of living than the national average

What market factors to look for when considering an out-of-state move

A shift to remote work has made it possible for more people to relocate and become homeowners. Whether they’re looking for more space, wanting to escape the hustle and bustle of city living, or simply move closer to family and friends, more homebuyers are casting wider nets and looking further afield to markets that they might not have considered before. But when you can live anywhere (from the beaches of Florida to the mountains of Tennessee) how do you narrow your search and decide which city works best for you? One popular strategy is to go where living is cheaper and, in some cases, sweeter.


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10 of the most affordable cities in America for homebuyers

Affordability calculators are helpful tools when it comes to understanding your budget for buying a house, but they don’t tell you where you can get the most bang for your buck. To figure that out, you need to take a look at the cost of living in the area you want to move to. This will help you determine the amount of money you need to maintain your lifestyle in any given city.

The cost of living index offers a snapshot glimpse at how expensive everyday goods and services are (the price of a gallon of milk, a visit to the doctor, etc.) relative to other cities in America. As you can imagine, the cost of living from place to place can vary drastically—for example, living in California is much more expensive than living in Montana. And if you’re hoping to buy, more affordable homes require smaller down payment amounts, which can be a game changer (particularly for first-time homebuyers). When you take all that into account, it’s not surprising that many people are interested in finding cities where their dollar goes farther.

Cost of living in America

Determining a city’s cost of living is complex, and the numbers tend to fluctuate over time. The process implemented by the Council for Community and Economic Research involves measuring the average local price of basic consumer products and services (food, healthcare, transportation) against the cost of those same everyday expenses in other areas. Because the largest portion of most people’s paychecks goes toward covering housing expenses, the price of real estate listings and rent also play a significant role in this equation. To help you get an idea of how well a city suits your needs, let’s break down some of the most affordable cities based on median home price and median household income.

Most affordable cities in America

Knoxville, Tennessee

Positioned in eastern Tennessee, Knoxville has easy access to the Great Smoky Mountains (the most visited national park in the country) and tons of outdoor recreational activities. Bluegrass and country music have deep roots here that persist today, evidenced by the strong music and festival scene. With a population of roughly 188,000, Knoxville is the third largest city in Tennessee trailing only Memphis and Nashville. The overall cost of living here is about 15% lower than the national average, with reasonable housing, utility, and transportation costs. The median household income clocks in at about $40,000 and the median home price is $280,000.

Memphis, Tennessee

All the way across the state from Knoxville, Memphis is located on the banks of the Mississippi River in southwestern Tennessee. It has a rich cultural history connected to blues and rock music (think Beale Street, Graceland, and Sun Studio) and was a pivotal site during the civil rights movement. While there’s a thriving music scene downtown, Memphis also offers classic rural vibes. With a population of 651,000, Memphis is a sizable city with a pretty low cost of living—about 24% lower than the national average. The median household income is in the ballpark of $41,000 per year, and the median home price is $192,000.

Kalamazoo, Michigan

Kalamazoo—a fun name for a fun city. It’s not far from Great Lakes Huron and Michigan, which means outdoor activities are accessible (think weekend trips rather than daily dips). With a population of 265,000, Kalamazoo has a good mix of urban and suburban vibes that appeal to hipsters, families, and working professionals alike. If you’re interested in affordable craft beer and affordable housing, this might be the place for you. The cost of living is about 20% lower than the national average. The median household income is around $56,500 per year, and the median home price is $179,000.

Jacksonville, Florida

Many people fantasize about sandy beaches and sunny days, but Floridians actually get to live the dream and enjoy those conditions year round. Jacksonville sits on the northeast coast of the sunshine state; the St. Johns river runs through it. With a population just shy of 1 million, it’s the most populous city in Florida and the largest city by area in the US. All that square footage means it contains a diverse offering of suburban, urban, and beachside communities—something for everyone. The cost of living is about 9% below the national average, with a median household income of around $54,700 and a median home price of $258,000.

St. Louis, Missouri

With a population of 300,000, St. Louis is the second largest city in Missouri. Its most recognizable landmark is the famous Gateway Arch, built in honor of the Lewis and Clark Expedition which departed from St. Louis in 1804. Today the city’s neighborhoods are characterized by Midwestern charm. St. Louis is bordered by the Mississippi River and has a family-friendly feel. The cost of living is about 13% below the national average. The median household income is around $43,800 and the median home price is $215,000.

Columbus, Ohio

Columbus is home to Ohio State University, which contributes to the energy and ambition at the heart of the city. (Go Buckeyes!) With a population of 900K, this city boasts a strong economy and competitive job market along with plenty of cultural activities (music, theatre, museums, etc.) that most college towns cultivate. As midwestern metro areas go, it’s extremely affordable: the cost of living is about 15% below the national average, with a median household income of around $53,700 and a median home price of $245,000.

Oklahoma City, Oklahoma

According to Rodgers and Hammerstein, Oklahoma is “where the wind comes sweeping down the plains.” On top of that, it’s also a great place to live if you’re looking for a welcoming, upbeat city. Known as “The Big Friendly”, Oklahoma City still has traces of its folksy Western roots—horses and cattle were once the stock and trade of this place, after all—but an influx of younger people has modernized the state capital. Millennials in particular have flocked to this region for its affordability, growing job market, and family-friendly community. With a population of 655,000, it’s no longer just cowboys and ranch hands. The cost of living is about 14% below the national average, the median household income here is around $55,500, and the median home price is $229,000.

Las Vegas, Nevada

Ready to roll the dice on a new home? Las Vegas is actually a pretty safe bet. There are suburbs beyond the famous Strip with access to some of the best outdoor vistas in the country, including Red Rock Canyon National Park. Because Vegas is a tourist destination, it offers an endless stream of entertainment and cultural events. You can also get to LA in about an hour by plane or 5 hours by car. One serious question you’ll need to ask yourself before moving: can you handle the heat? It does get pretty toasty in the dry desert summers, and the risk of fires can drive up the cost of homeowners insurance. While Las Vegas currently has the highest median home price on our list at $350,000, it also offers a cost of living only 2% higher than the national average—which is reasonable compared to other hubs on or near the West Coast. The median household income here is around $56,300K and the job market is steadily getting stronger.

Buffalo, New York

With stellar skiing during the winter and easy access to Lake Erie in the summer, there’s a lot to keep you busy in Buffalo. Located in upstate New York (and only about 20 minutes from Niagara Falls) this city has a modest population of 255K that gives it a small-town atmosphere, a vibe that is underscored by the local passion for hockey and football. At the same time, you can be in another world pretty quickly: get to the unparalleled metropolis of New York City in about an hour by hopping on a quick flight down-state or travel internationally by driving to Ontario in less than 2 hours. The cost of living here is about 20% below the national average. With a median home price of $200,000, it’s also relatively affordable to buy a home here even though the median household income is the lowest on our list at around $37,300.

San Antonio, Texas

As a tourist destination (more than 2.5 million people come here to visit the Alamo each year) this city proudly displays a rich blend of Western Frontier and Spanish history. When it comes to lifestyle, San Antonio’s 1.5 million residents have the best of both worlds. You’ll find the trappings of a bigger city, like delicious and diverse food options, pro sports teams, and amusement parks. But you’ll also notice the comforts of community in local museums, parks, and music venues. San Antonio is one of the fastest growing cities in Texas. With a median household income around $52,400 and a median home price of $267,400, the cost of living is about 11% below the national average.

Connect with a real estate agent who has local knowledge

All the cities on this list have a lot to offer, as do countless other places where the cost of living is cheaper than the national average. Having said that, you shouldn’t necessarily plan to move somewhere solely based on cost of living. While you might be able to afford a big house in another city, you may also find that smaller markets have fewer jobs making them less budget-friendly than you initially thought. Local factors like climate (flood zones, wetlands, tornado alleys) may also drive up the cost of owning a home with insurance or other area-specific fees. Keep a balanced perspective when evaluating affordability, and understand the concessions that come with both a lower and higher cost of living.

If you’re considering an out-of-state move, local real estate agents are extremely valuable. They can answer specific questions about the market you’re interested in and help you confirm whether a city will be a good match for your budget and your lifestyle. Funding with Better Mortgage could help you close 10 days faster, and working with a Better Real Estate agent could save you $2,000 on closing costs.* Get pre-approved in as little as 3 minutes to start the process.

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Figures pertaining to median household income and population are based on data from the US Census Bureau figures pertaining to median home price are based on housing market data from Redfin. Cost of living data is based on information from the Council for Community and Economic Research.


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FAQs

What major city has the most affordable housing? ›

1. Detroit, Michigan
Median home listing price in 2020$59,000
Median real estate taxes$1,268
Average state income tax4.25%
Monthly utilities$290
Annual food cost$8,277
2 more rows
Oct 13, 2022

Where is the cheapest and nicest place to live in USA? ›

Lake Side Park in Fort Wayne, Indiana, named the most affordable city to live in America. In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list was Fort Wayne, Indiana, which also took the top spot in three previous years: 2021, 2019 and 2018.

What state is cheapest to buy a house? ›

The cheapest state to buy a house in the US is West Virgina, with an average home there costing $129,103. That number is almost $30,000 less than average home price in the next cheapest state, Mississippi ($157,828), and less than half the US national average of $344,141, according to the Zillow Home Value Index.

Where is the best place to live financially? ›

Above you'll see that Sioux Falls, SD is the big winner in 2022, with the best total score and the top ranking among all US cities. Reno, NV, Provo, UT, Madison, WI, and Huntsville, AL round out the top five.

Which cities have the worst housing shortage? ›

RankMarketNew Units Needed/Year
1New York City10,000
2Dallas – Fort Worth19,000
3Houston15,000
4Los Angeles6,000
5 more rows
Feb 24, 2023

What 5 states have the lowest cost of living? ›

13 Cheapest States to Live in for 2023
  • Mississippi.
  • Oklahoma.
  • Kansas.
  • Alabama.
  • Georgia.
  • Ohio.
  • Iowa.
  • West Virginia.
Feb 2, 2023

What is the best state to live in financially? ›

What is the best state to live in 2022 financially? Researchers at the personal finance publication ranked the 50 states based on scores in five categories: affordability, economy, education and health, quality of life, and safety. Massachusetts topped 2022's list, touting a score of 62.65 out of 100.

Where is the best but cheapest place to live? ›

Most Affordable Places to Live in the U.S. in 2022-2023
  • Hickory, NC.
  • Green Bay, WI.
  • Quad Cities, IA-IL (Davenport-Bettendorf, IA & Moline-Rock Island, IL)
  • Fort Wayne, IN.
  • Pittsburgh, PA.
  • Beaumont, TX.

What is the 3 cheapest state to live in? ›

The 5 Cheapest States To Live In
  • Mississippi. Cost of Living Index: 84.9. Living wage per hour: $21.09. ...
  • Oklahoma. Cost of Living Index: 85.7. Living wage per hour: $22.06. ...
  • Kansas. Cost of Living Index: 86.4. Living wage per hour: $23.24. ...
  • Alabama. Cost of Living Index: 87.5. ...
  • Georgia. Cost of Living Index: 87.8.
Feb 23, 2023

What's the best state to move to? ›

Best States 2021
  • #1. Washington.
  • #2. Minnesota.
  • #3. Utah.
  • #4. New Hampshire.
  • #5. Idaho.

Where is it cheap to buy a house? ›

Top 10 cheapest boroughs in London 2022
  • Barking and Dagenham. The affordability of homes in this London borough makes it an ideal location for first-time buyers. ...
  • Croydon. ...
  • Haringey. ...
  • Enfield. ...
  • Sutton. ...
  • Lewisham. ...
  • Newham. ...
  • Greenwich.
May 14, 2022

What is the hardest state to buy a house in? ›

Here are the top 10 states of the US that have the hardest chances of owning a home, from worst to best:
  • Hawaii.
  • California.
  • New York.
  • Alaska.
  • New Jersey.
  • Massachusetts.
  • Texas.
  • Nevada.
Nov 16, 2022

What state has cheapest property taxes? ›

States With the Lowest Property Taxes in 2023
  • Hawaii. Hawaii has the lowest property tax rate in the U.S. at 0.27%. ...
  • Alabama. Alabama is generally one of the more affordable states in the country. ...
  • Nevada. Nevada is tied with Colorado for the third-lowest property tax rate in the nation (0.48%). ...
  • Colorado. ...
  • Utah. ...
  • Wyoming.
Feb 13, 2023

What states have the cheapest mortgages? ›

Cheapest States To Buy A House
RankStateMedian Household Income
1Tennessee$68,600
2Illinois$85,000
3Oklahoma$67,000
4Ohio$75,300
16 more rows
Feb 16, 2023

Where is the cheapest but safest place to live? ›

Here are some of the cheapest and safest places to live in the US!
  • Live in Boise, Idaho.
  • Affordable living in Des Moines, Iowa.
  • Winston Salem, North Carolina: among the cheapest cities in USA.
  • Live affordably in Naples, Florida.
  • Enjoy Lexington, Kentucky.

Where is the least expensive and safest place to live? ›

10 of the cheapest and safest places to live in the world
  • Albania.
  • Portugal.
  • Costa Rica.
  • Panama.
  • Mexico.
  • Thailand.
  • Malaysia.
  • Vietnam.

Where is the cheapest warm place to live? ›

  • Baton Rouge, Louisiana. ...
  • Little Rock, Arkansas. ...
  • Mobile, Alabama. ...
  • Columbus, Georgia. ...
  • Memphis, Tennessee. Average weather summer: 74°F to 91°F. ...
  • Shreveport, Louisiana. Average weather summer: 72°F to 90°F. ...
  • Birmingham, Alabama. Average weather summer: 72°F to 90°F. ...
  • Jackson, Mississippi. Average weather summer: 73°F to 92°F.
Mar 5, 2023

What city has the hottest housing market? ›

Hottest Markets Overall
  • Raleigh: 71.7.
  • Denver: 67.5.
  • (Tie) Austin: 67.3.
  • (Tie) Durham: 67.3.
  • Phoenix: 66.9.
  • Richmond: 66.8.
Feb 14, 2023

What state has the most overpriced housing market? ›

The most overvalued markets to rent a home are mostly found in California and Florida. You'll pay the most to buy a median-price home versus renting a home in California, as well as MSAs in Oregon, Washington, Colorado, Idaho and Utah.

Which states have the hottest housing market? ›

2023 top housing markets
  • Hartford-West Hartford, Connecticut. November 2022 median home price: $372,000. ...
  • El Paso, Texas. November 2022 median home price: $291,000. ...
  • Louisville, Kentucky. ...
  • Worcester, Massachusetts. ...
  • Buffalo-Cheektowaga, New York. ...
  • Augusta, Georgia-South Carolina. ...
  • Grand Rapids-City of Wyoming, Michigan.
Dec 7, 2022

What states have the worst cost of living? ›

15 Most Expensive States in America to Live In
  • New Hampshire. At the bottom of the list is New Hampshire, landing at No. ...
  • Washington. With its mild climate, it's no surprise to see Washington in the No. ...
  • Vermont. ...
  • New Jersey. ...
  • Maryland. ...
  • New York. ...
  • Massachusetts. ...
  • Hawaii.
Oct 15, 2022

What 3 states have the highest cost of living? ›

Missouri had the 6th lowest cost of living in the United States for 2022. In general, the most expensive areas to live were Hawaii, Alaska, the Northeast, and the West Coast. The least expensive areas were the Midwest and Southern states.

What is the best state to move in 2023? ›

The 10 Best Places to Live in the U.S. in 2022-2023:
  • Green Bay, Wisconsin.
  • Boulder, Colorado.
  • San Jose, California.
  • Raleigh and Durham, North Carolina.
  • Fayetteville, Arkansas.
  • Portland, Maine.
  • Sarasota, Florida.
  • San Francisco.

Which state has the nicest people? ›

Minnesota takes top spot, thanks to its extraordinarily friendly residents. It's called 'Minnesota Nice' for a reason – the atmosphere in the Twin Cities and beyond is hard to match, with a homey feel and locals who go the extra mile to welcome tourists.

What is the most stressful state to live in? ›

(FOX5) - A new report found that Nevada ranks as the most stressful state in the country.
...
Nevada ranked as #1 most stressful state, study says
  • Nevada.
  • Mississippi.
  • West Virginia.
  • Louisiana.
  • North Carolina.
  • Oklahoma.
  • Arkansas.
  • Alabama.
Feb 20, 2023

Which state has best value of money? ›

This includes the cost of living, which varies widely from one to another and also regionally.
...
  • Ohio. #1 in Affordability. ...
  • Oklahoma. #2 in Affordability. ...
  • Michigan. #3 in Affordability. ...
  • Iowa. #4 in Affordability. ...
  • Missouri. ...
  • Indiana. ...
  • Arkansas. ...
  • West Virginia.

Where in the U.S. is housing affordable? ›

10 most affordable US cities to buy a home 2021 Q4
RankMetro AreaPercent of for-sale housing market affordable with median income
1Lansing, MI91%
2Scranton, PA89%
3Pittsburgh, PA88%
4Indianapolis, IN88%
6 more rows
Feb 14, 2022

What are the best states to live in the future? ›

2022's top 10 best states to live in
  • New York; Score: 60.64.
  • Idaho; Score: 58.73.
  • Virginia; Score: 58.73.
  • New Hampshire; Score: 58.25.
  • Florida; Score: 58.07.
  • Wyoming; Score: 58.
  • Minnesota; Score: 57.99.
  • Wisconsin; Score: 57.92.
Aug 16, 2022

What 5 states have the highest cost of living? ›

The Most Expensive States in 2023
  • Hawaii. Tops on the list lands Hawaii, with a COL index of 193.3. ...
  • New York. Considering high COL areas tend to be states with dense population centers, New York's entry on this list shouldn't be too much of a surprise. ...
  • California. ...
  • Massachusetts. ...
  • Oregon.
Jan 24, 2023

What are the top 10 states for cost of living? ›

10 Most Expensive States To Live In
  • New Hampshire. State Cost of Living Index: 114.7. ...
  • Connecticut. State Cost of Living Index: 115.4. ...
  • Vermont. State Cost of Living Index: 116.4. ...
  • Oregon. State Cost of Living Index: 122.2. ...
  • Maryland. State Cost of Living Index: 124.1. ...
  • Alaska. State Cost of Living Index: 125.5. ...
  • New York. ...
  • 3. California.
Jan 26, 2023

What is the cheapest state to retire in 2023? ›

Mississippi

Which state has the happiest residents? ›

Massachusetts: “The Happiest State in the U.S.”

Our research studies reveal that the state of Massachusetts topped the rankings for 3 of our categories: Well-being, Mental Health, and Family, and featured in the top 11 states for three more: Health Care, Financial Security, and Work.

Which states is everyone moving to? ›

More people moved to Florida than any other state in the country in 2022, according to a new report from the National Association of Realtors. The Sunshine State saw the highest net domestic migration gains last year, with its population growing by 1.9 percent.

Which state has the most opportunities? ›

The 2019 Opportunity Index provides Opportunity Scores for all 50 states plus the District of Columbia and for nearly 2,065 counties, which together represent 97 percent of the U.S. population.
...
State Rankings.
RankStateOverall Opportunity Score %
1Minnesota63.100
2Vermont63.000
3Iowa62.600
4Massachusetts60.900
47 more rows

Are houses in Florida cheap? ›

Median property prices in Florida are lower than in other states due to the fact the median income in Florida is also lower than in other states. In the real estate market, Florida houses cannot be too expensive, or else the average buyer wouldn't be able to afford any property.

Which country has the most affordable housing? ›

Housing Affordability
#35 CountriesPercent of Household Income Minus Housing Cost
1#1 South Korea85.10 %
2#2 Estonia83.60 %
3#3 Hungary82.60 %
4#4 Russia82.50 %
31 more rows

Can you buy a house with 50000? ›

You can generally afford a home between $180,000 to $250,000 (perhaps nearly $300,000) on a $50K salary. But your specific home buying budget will depend on your credit score, debt-to-income ratio, and the size of your down payment.

Where are the most affordable houses in the USA? ›

15 Cheapest States to Buy a House
  • Oklahoma. ...
  • Michigan. Median Home Price: $154,900. ...
  • Arkansas. Median Home Price: $127,800. ...
  • Alabama. Median Home Price: $142,700. ...
  • North Dakota. Median Home Price: $193,900. ...
  • Kentucky. Median Home Price: $141,000. ...
  • Missouri. Median Home Price: $157,200. ...
  • South Dakota. Median Home Price: $167,100.
Feb 3, 2023

Where in U.S. is housing still affordable? ›

Top 10 cheapest states to buy a house in 2022
  • Iowa.
  • Indiana.
  • Ohio.
  • Nebraska.
  • Kansas.
  • Mississippi.
  • West Virginia.
  • Oklahoma.
Sep 14, 2022

Where can I live for $1000 a month in USA? ›

GOBankingRates looked at cities throughout the country, big and small, and found 20 with rents averaging $1,000 per month or less.
...
  • New Bern, N.C. Median rent price: $1,000. ...
  • Rock Hill, S.C. ...
  • Tallahassee, Fla. ...
  • Beaumont, Texas. ...
  • Winston-Salem, N.C. ...
  • Shreveport, La. ...
  • Las Cruces, N.M. ...
  • Champaign, Ill.
Jul 22, 2016

What state in the US has the cheapest rent? ›

1. Mississippi. Mississippi is the cheapest place to live in the United States, with a cost of living 15.6% lower than the national average.

What's the best state to buy a house right now? ›

1. Iowa. Not only is Iowa one of the 10 most inexpensive states in the U.S., it's also ranked as the safest. With an overall cost of living at around 90% of the U.S. average, housing will run you just 75% of the U.S. average.

What state is best to buy a house? ›

Tennessee is the cheapest state to buy a house in 2022. Oregon is the most expensive state to buy a house in 2022. $514,568 was the average house price in the United States in Q4 2021.

Where is the best place to buy house in USA? ›

10 Best Places To Buy House in the US, 2023!
  • Charlotte, North Carolina.
  • Dallas / Fort Worth, Texas.
  • Denver, Colorado.
  • Houston, Texas.
  • Las Vegas, Nevada.
  • Orlando, Florida.
  • Phoenix, Arizona.
  • Portland, Oregon.
Dec 26, 2022

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