In this article, we will be taking a look at the 30 most affordable beach towns to live in the US. If you wish to see the top ones, then head straight to the 10 Most Affordable Beach Towns to Live in the US.
One of the biggest concerns in the United States today is the rising expense of living, which puts inflation at the center of most economic discussions. Following the COVID-19 pandemic, US inflation surged to some of the highest levels since 1981, peaking at 9.1% in June 2022. In 2023, it decreased and finished the year at 3.4%. Nevertheless, inflation rates are still above the Federal Reserve's target of 2%.
Moreover, we previously mentioned in one of our articles that leading economists, polled by the Financial Times between December 1 and December 4 of last year, are expecting the Federal Reserve to keep US interest rates at their 22-year high through at least July 2024. Although most of the respondents believe that the rate-raising phase was now over, nearly two-thirds of those surveyed said that the central bank will not begin a reduction in its benchmark rate before the third quarter of next year.
In light of this, people are expected to closely examine inflation rates across the country and relocate to places with a more affordable cost of living. Meanwhile, with 95,471 miles of shoreline, the US provides a variety of stunning natural landscapes, exciting local attractions, amazing seafood cuisine, and mild weather. Many people dream of owning a beach house or an apartment in the United States. That being said, coastal cities are often associated with having high housing prices.
However, several beach towns in the country offer affordable housing. For instance, the typical value of a home in Panama City is currently $268,315, per Zillow. It is one of the cheapest beach towns to live in Florida. Similarly, Myrtle Beach is one of the most affordable beach towns in South Carolina. The average home value in Myrtle Beach is $295,796, while its cost of living is 9.6% lower than the national average.
On the other hand, home building companies like LGI Homes, Inc. (NASDAQ:LGIH) and PulteGroup, Inc. (NYSE:PHM) are providing affordable housing options in many beach towns across the US.
LGI Homes, Inc. (NASDAQ:LGIH), founded in 2003 and based in The Woodlands, Texas, is a construction company. On October 31, LGI Homes, Inc. (NASDAQ:LGIH) posted earnings for the third quarter of 2023, reporting a GAAP EPS of $2.84, beating market estimates by $0.57. The revenue over the period was $617.5 million, up 12.9% compared to the revenue over the same period last year.
Hedge funds like the company. LGI Homes, Inc. (NASDAQ:LGIH) was a part of 23 hedge fund portfolios at the end of Q3 2023, up from 14 in the previous quarter, according to Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $86.1 million.
Since its founding in 1950, PulteGroup, Inc. (NYSE:PHM), a residential home-construction company based in Atlanta, Georgia, has delivered close to 750,000 homes throughout the United States.
Here are some comments from PulteGroup, Inc. (NYSE:PHM)’s Q3 2023 Earnings Call:
“Through the first nine months of 2023, we have invested $3 billion in our business through land acquisition and development. Over this same period, we have returned over $800 million to shareholders through share repurchases and dividends. In this most recent quarter, we even took advantage of market conditions to retire $65 million of near term debt at prices just below par. PulteGroup has delivered outstanding operating and financial performance in the quarter and throughout the first nine months of the year as we have leveraged our strong competitive position to capitalize on buyer demand. It grows increasingly clear that Federal Reserve actions to raise interest rates are having the desired effect of slowing the economy, although the speed of deceleration has been slower than expected given the unprecedented ramp in rates.”
We initially consulted a range of reliable sources like Hotels.com, Thrillist, MarketWatch, SmartAsset, and Realtor.com among others, to get a list of the affordable beach towns in the country.
Following this, we sorted these beach towns on the basis of their cost-of-living index as calculated by BestPlaces, and eventually identified the 30 most affordable beach towns to live in the US. The beach towns are arranged in descending order of their cost-of-living index.
Just to provide our readers more context on this, a cost-of-living index calculates the expenses associated with maintaining a specific living standard in a given place. The scores are presented in relation to the national average of 100. A place with an index score of 99 means that its cost of living is 1% lower than the national average.
Moreover, according to Zillow, a real-estate source, the average United States home value is $342,685 as of December 2023. Zillow data indicates that the average home value in each beach town on our list is less than the national average.
Please note that when two or more beach towns had the same cost-of-living index, we used the average home value in each town as a tiebreaker.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
30. Freeport, Texas
Cost of Living Index: 99.7Average Home Value: $128,836 Freeport, with its pristine beaches, rich maritime history, and a wealth of recreational opportunities, is a vibrant coastal city nestled along the Gulf of Mexico in Texas. Moreover, according to Zillow, the typical value of a home in Freeport is currently $128,836.
29. Grand Isle, Louisiana
Cost of Living Index: 97.5
Average Home Value: $160,733
Next up on our list of most affordable beach towns to live in the US is Grand Isle, Louisiana. The overall cost of living in Grand Isle is 2.5% lower than the US average.
28. Jacksonville, Florida
Cost of Living Index: 95.7
Average Home Value: $291,955
Jacksonville, located on the Atlantic coast of northeastern Florida, has stunning beaches, mild climate, and plenty of outdoor activities. The city offers several amenities including affordable housing to its residents.
27. Panama City, Florida
Cost of Living Index: 95.4
Average Home Value: $268,315
Panama City, located in Bay County, Florida, is a popular beach town among water sports enthusiasts. Besides, we previously noted that it is one of the most affordable beach towns to buy a home in the US.
26. Daytona Beach, Florida
Cost of Living Index: 94.9
Average Home Value: $254,480
Daytona Beach, situated along the sunny Atlantic coast, boasts a vibrant nightlife and world-class attractions. It is also one of the cheapest beach towns to retire in the US.
25. Atlantic City, New Jersey
Cost of Living Index: 93.9
Average Home Value: $195,699
Atlantic City, known for its many casinos, wide beaches and iconic Boardwalk, ranks as one of the most affordable beach towns to live in the US. Additionally, as per Zillow, the typical home in Atlantic City is worth about $195,699.
24. Crescent City, California
Cost of Living Index: 93.3
Average Home Value: $341,852
California may be known for having high costs, but Crescent City, with a population of just over 6,000 people, is an exception to it. With a cost of living 6.7% lower than the US average, this beach town is ideal for outdoor enthusiasts looking for a lovely place to enjoy activities like hiking, biking, and kayaking, as well as a moderate climate, fresh, delicious seafood, and views of the ocean.
23. Newport News, Virginia
Cost of Living Index: 91.5
Average Home Value: $263,281
Newport News, Virginia, situated at the southeastern end of the Virginia Peninsula, offers a unique blend of small-town charm and urban amenities.
In Newport News, the average home value is $263,281, putting it among the most affordable beach towns in the US.
22. Norfolk, Virginia
Cost of Living Index: 91.4
Average Home Value: $280,417
Norfolk, a waterfront city in southeastern Virginia, has a temperate climate, diverse shopping centers, delicious restaurants, plenty of outdoor entertainment opportunities, and reasonably priced homes.
21. Brunswick, Georgia
Cost of Living Index: 90.9
Average Home Value: $224,610
Brunswick, known for thriving saltwater marshes that lead to sandy beaches where sea turtles breed along the Atlantic Ocean, is located in southeastern Georgia. The average home value in Brunswick is $224,610, while its cost of living is 9.1% lower than the US average.
20. Myrtle Beach, South Carolina
Cost of Living Index: 90.4
Average Home Value: $295,796
Myrtle Beach, with a 60-mile string of beaches known as the Grand Strand, is a popular city located in South Carolina. Additionally, the typical home in Myrtle Beach is worth about $295,796.
It is among the top most affordable beach towns to live in the US on our list.
19. Coos Bay, Oregon
Cost of Living Index: 90.0
Average Home Value: $318,173
The total cost of housing, food, transport and healthcare in Coos Bay, Oregon, is less than the US average. In addition, this beach town offers a wealth of outdoor activities, breathtaking views, and stunning sunsets.
18. Pensacola, Florida
Cost of Living Index: 89.0
Average Home Value: $254,926
Pensacola, the westernmost city in the Florida Panhandle, features magnificent beaches, historic attractions and plenty of shopping and dining options.
The overall cost of living in this coastal city is lower than the US average, and it also offers affordable housing.
17. Hampton, Virginia
Cost of Living Index: 87.9
Average Home Value: $252,734
Hampton, located on the mouth of the Chesapeake Bay, is known for its historical significance and beautiful beaches. Besides, houses in the city are available at cheap rates.
16. Long Beach, Washington
Cost of Living Index: 85.4
Average Home Value: $331,339
Long Beach, situated in southwest Washington, provides a quaint seaside feel and stunning scenery. Moreover, not only are homes affordable in Long Beach, but the cost of living is 14.6% lower than the national average.
15. Mobile, Alabama
Cost of Living Index: 84.1
Average Home Value: $181,694
Mobile, a port city on Alabama’s Gulf Coast, is well-known for its unique culture and diverse attractions. Additionally, the typical home in Mobile is worth about $181,694, putting it among the most affordable beach towns to live in the US.
14. Ocean Springs, Mississippi
Cost of Living Index: 83.5
Average Home Value: $249,795
In addition to offering an amazing beach lifestyle, Ocean Springs, located in Jackson County, Mississippi, also has reasonably priced housing options.
13. Pascagoula, Mississippi
Cost of Living Index: 83.5
Average Home Value: $129,414
Pascagoula, Mississippi, home to a population of 22,000 people, is situated in the Gulf Coast region. This coastal city offers an affordable cost of living and year-round access to a variety of outdoor activities.
12. Corpus Christi, Texas
Cost of Living Index: 83.5
Average Home Value: $211,859
Situated on the Gulf of Mexico, Corpus Christi has a thriving cultural scene, breathtaking beaches, interesting historical sites, and exciting outdoor activities. It also qualifies as one of the most affordable beach towns to live in the US. Its cost of living is 16.5% lower than the US average.
11. Bay St. Louis, Mississippi
Cost of Living Index: 83.4
Average Home Value: $238,517
Situated 51 miles away from New Orleans, Bay St. Louis, Mississippi, is famous for its white sand beaches and fishing and outdoor festivals. Besides, this Gulf Coast destination is known for its lower cost of living compared to other regions of the US.
