In this article, we will take a look at the 30 most affordable cities in the US. If you want to see more cities in this selection, go to the 5 Most Affordable Cities in the US.
The cost of living crisis is affecting people living in every region of the world, thus causing the topic of inflation to be at the forefront of most economic discussions. While economists and analysts are worried about inflation in general, they seem to be questioning the Federal Reserve’s ability to combat it. Since March of last year, the Federal Reserve has implemented a series of interest rate hikes, amounting to a cumulative increase of 4.50%. As a consequence, this has led to a redirection of funds from the stock market towards more secure investment options, including bonds and bank savings accounts. After 10 consecutive increases since March 2022, the federal funds rate now hovers between 5% and 5.25%, the highest level since mid-2007. According to analysts, the biggest downward drivers of inflation will be rising joblessness and softening wage gains.
Such an economic environment, coupled with the effects of the outbreak of the pandemic, triggered a sense of restlessness among Americans, leading numerous families to embark on relocations in pursuit of increased living space or a more affordable cost of living. This trend persisted throughout 2022, witnessing hundreds of thousands of individuals uprooting their lives and resettling in different states. Nadia Evangelou, the senior economist and director of real estate research at NAR, reports that residents are migrating to states with job markets that exhibited faster-than-average growth during the pandemic. Furthermore, these states also offer more accessible and affordable housing compared to regions experiencing population decline.
The recent surge in inflation has caused numerous Americans to consider relocating to cities with a more affordable cost of living. According to data released by the International Monetary Fund, the U.S. Consumer Price Index (CPI) reached approximately 258.84 in 2020 and is projected to rise to 325.6 by 2027, relative to the base period from 1982 to 1984. While the rise in inflation can be attributed to a number of reasons, the movement of people within the United States, and its impact on local housing markets, seems to be one of them. For millions of homeowners all over the country, particularly older owners, the huge increase in home values during the pandemic finally gave them the incentive to make an interstate move that they might have been wanting to make for years.
An October report from real-estate brokerage Redfin suggests that higher mortgage rates and mounting economic woes are making expensive parts of the country "less attractive" to prospective buyers. More homebuyers left the Bay Area than any other metro in July and August, followed by Los Angeles, New York, Washington, D.C., and Boston, all expensive job centers with high mortgage rates and economic woes, including inflation, making it more difficult to afford homes in these places. The rise in inflation, coupled with the lingering impacts of the COVID-19 pandemic, resulted in many changes in lifestyles, including an increasing work-from-home preference among employees, which led to numerous families relocating to find more affordable places to reside. This trend has continued into 2023, with hundreds of thousands of individuals choosing to move to different cities. However, this trend may slow in the future as the financial benefit of living in such places diminishes. For example, homes in the Sun Belt metros are becoming less affordable more quickly compared to coastal areas. Homebuyers in Phoenix, for instance, need to earn 46% more than they did a year ago to afford the area’s typical monthly mortgage payment, compared with 26% more in San Francisco.
With these details in mind, let’s take a look at some of the most affordable cities to live in the US.
Our Methodology
We used a city screener developed by Niche to pick the most affordable cities in the US. While the cost of living was the primary factor in determining this list, we also presented facts about housing and utilities within the listed cities. You can also take a look at the 30 Best Places to live in the U.S. for the Weather.
30 Most Affordable Cities in the US
30. Clarksville
The fifth-largest city in the state of Tennessee with a population of approximately 160,000, Clarksville serves as the seat of the Montgomery County. The city is home to several major employers, including Fort Campbell, a U.S. Army base that straddles the Tennessee-Kentucky border. Houses in Clarksville rent between $600 - $5,008 with a median rent of $1,300.
29. Lansing
The birthplace of Oldmobile and home to Michigan State University, Lansing is the fifth-largest city in the state of Michigan with a population of 112,460. The cost of living in Lansing is 6% lower than the state average and 9% lower than the national average. Additionally, housing within the city is 18% cheaper than the U.S average.
28. Birmingham
Birmingham, also known as the 'Magic City', serves as the largest city in Alabama and is situated in the central part of the state. With a population of over 200,000 residents, Birmingham is a significant cultural, economic, and industrial center in the region. The cost of living in Birmingham is 8% lower than the national average while housing is 20% cheaper than the U.S average.
27. Kansas City
Kansas City holds the distinction of being the largest city in the state of Missouri and ranks among the largest cities in the United States. Consequently, it boasts a robust economy, hosting notable companies such as Sanofi and Dairy Farmers of America. In terms of housing, the city offers a median rent of $1,040 and median home prices averaging around $175,400.
26. Memphis
Memphis is a city on the Mississippi River in southwest Tennessee, famous for the influential strains of blues, soul and rock 'n' roll that originated there. Nicknamed "Home of the Blues" and "Bluff City," Memphis is considered one of the best places to live in Tennessee and a good place for young professionals and families due to its affordable housing.
25. Pittsburgh
Known for being the “Steel City,” home of the Pittsburgh Steelers and the Pittsburgh Pirates, Pittsburgh is a convenient, affordable place to live and work due to a cost of living that is 7% lower than the national average, a reasonable median home price of $259,900, and median monthly rent of $1,427. The city also has a range of top-notch companies in the education, technology, healthcare, and steel industries.
24. Springfield
Lying in a valley and plain near the Sangamon River, Springfield is the capital of the US state of Illinois and the county seat and largest city of Sangamon County. The cost of living in Springfield is 1% higher than the state average but 7% lower than the national average. Housing within the city is 11% cheaper than the US average, while utilities are about 2% pricier.
23. Jackson
Jackson, the state capital of Mississippi, offers big-city amenities along with a comfortable quality of life and reasonable home prices. Home to activists like Medgar Evers and the site of some of the most significant protests in the nation's history, Jackson was the heartbeat of the fight for equality in the United States. The cost of living in Jackson is 1% lower than the state average and 16% lower than the national average. Additionally, housing is 32% cheaper than the US average, while utilities are about 17% cheaper.
22. Detroit
Long known as the automobile capital of the world, thus earning the the moniker of 'Motor City', Detroit is the largest city in the midwestern state of Michigan. The metropolitan area, known as Metro Detroit, is home to 4.3 million people, making it the second-largest in the Midwest after the Chicago metropolitan area, and the 14th-largest in the United States. Regarded as a major cultural center and one of the most affordable cities to live in, Detroit is known for its contributions to music, art, architecture and design, in addition to its historical automotive background.
21. Cedar Rapids
Cedar Rapids is the second-largest city in Iowa, United States and is the county seat of Linn County. A flourishing center for arts and culture in Eastern Iowa, the city is home to the Cedar Rapids Museum of Art, the National Czech & Slovak Museum & Library, the Paramount Theatre, Orchestra Iowa, Theatre Cedar Rapids, the African American Museum of Iowa, and the Iowa Cultural Corridor Alliance. Housing expenses in Cedar Rapids are 29% lower than the national average and the utility prices are 8% lower than the national average.
20. Laredo
Laredo is a city in and the county seat of Webb County on the north bank of the Rio Grande in South Texas. Founded in 1755, Laredo grew from a village to the capital of the short-lived Republic of the Rio Grande to the largest inland port on the Mexican border. The city's economy is primarily based on international trade with Mexico and as a major hub for three areas of transportation - land, rail, and air cargo.
19. Davenport
Home to a variety of craft breweries, fun local shops, and nationally recognized chains, Davenport is the largest city in the QC metro. The cost of living in Davenport, Iowa, is 3% lower than the national average while the utility prices within the city are 13% lower than the national average.
18. Wichita
Known as the 'Air Capital of the World', Wichita is the largest city in the state of Kansas and the county seat of Sedgwick County. The cost of living in Wichita is 3% higher than the state average and 9% lower than the national average. With housing that is 29% cheaper than the US average and utilities that are about 2% less pricey, Wichita is one of the most affordable cities in the US.
17. Amarillo
A popular stop along Route 66 in Texas, Amarillo is also home to many well-known theatres and art shows, as well as the popular space museum, the Don Harrington Discovery Center and the Space Theater. The cost of living in Amarillo is 9% lower than the state average and 16% lower than the national average while housing is 28% cheaper than the US average.
16. McAllen
Having developed from a farming community to a visitor's delight, McAllen is known for its mild winter weather, tropical breezes, brightly colored birds, and low cost of living. The city also boasts millions of visitors annually on account of its many shopping districts. The cost of living in McAllen is 14% lower than the state average and 21% lower than the national average. Housing within the city is 45% cheaper than the US average, while utilities are about 6% pricier.
15. Abilene
A city based in the Taylor and Jones County, Abilene is known as the “Official Storybook Capital of America” because it has the largest public collection of sculptural storybook characters in the state of Texas. As of June 2023, the average rent for a 1-bedroom apartment in Abilene is $750. This is a 1% increase compared to the previous year.
14. Beaumont
Beaumont is a city in southeastern Texas known for the Spindletop-Gladys City Boomtown Museum, a recreated town showing life in the early 1900s, at the start of the Texas oil boom. Some of the major business clusters in Beaumont-Port Arthur area include chemical and petroleum manufacturing, materials manufacturing and transportation. The average rent for apartments in Beaumont is between $902 and $1,030 in 2023.
13. Montgomery
Montgomery is the capital city of the US state of Alabama and the county seat of Montgomery County. Named for the Irish soldier Richard Montgomery, it stands beside the Alabama River, on the coastal Plain of the Gulf of Mexico. In addition to housing many Alabama government agencies, Montgomery has a large military presence, due to the Maxwell Air Force Base. The average rent for apartments in Montgomery, is between $770 and $990 in 2023.
12. Cleveland
The second-most populous city in Ohio, Cleveland is known for its cultural scene, Polish heritage, and musical history. The city is also known for its outdoor recreation opportunities and an award-winning culinary and brewery scene. Home to approximately 368,000 residents, Cleveland's economy is based healthcare, banking, finance, education, insurance, manufacturing, sports, and tech.
11. Topeka
Topeka, situated on the Kansas River in Shawnee County, is the state capital of Kansas with a population of approximately 125,353 as of 2023. The city is known for its diverse economy, which includes sectors such as government, healthcare, education, manufacturing, and retail. The cost of living in Topeka is 7% lower than the state average and 18% lower than the national average making it one of the most affordable cities to move to. Additionally, housing in the city is 24% cheaper than the US average, while utilities are about 5% less pricey.
10. Buffalo
Home to the Albright-Know Art Gallery, in addition to over 50 private and public art galleries, Buffalo, NY, is one of the top art destinations in the United States. Although the snowstorms during winters may be inconvenient, the cities friendly locals and beautiful scenery make Buffalo a good place to live. The cost of living in Buffalo is 27% lower than the state average and 5% lower than the national average.
9. Akron
Sometimes overshadowed by Cleveland to its north, Akron is one of the most affordable places to live in Ohio. Hometown to Lebron James, Akron is globally recognized as a hub for polymer research, formerly known as a prominent rubber capital worldwide, and renowned for its association with the breakfast cereal industry. The city's cost of living is 14% lower than the national average.
8. Evansville
Evansville is a city located in the southwestern corner of the state of Indiana. Situated along the Ohio River, it is the third-largest city in the state and serves as the county seat of Vanderburgh County. The city is home to several major manufacturing facilities and has a strong industrial presence, with prominent companies like Toyota Motor Corp. (NYSE:TM). The average rent for apartments in Evansville is between $780 and $1,719 in 2023.
7. Fort Wayne
Fort Wayne is a city located in the northeastern part of the state of Indiana and serves as the county seat of Allen County and is the second-largest city in Indiana, after Indianapolis. Originally established as a military outpost in the 18th century, Fort Wayne has grown to become a diverse economy over time, which includes manufacturing, healthcare, education, defense, and services sectors. The cost of living in Fort Wayne is 1% lower than the state average and 11% lower than the national average. Housing in the city is also 29% cheaper than the US average.
6. Erie
Erie is Pennsylvania's only port on the St. Lawrence Seaway and is a strategic shipping point for industrial coke, iron ore, steel, salt, stone, and scrap metal. Erie's manufacturing sector remains prominent in the local economy, while insurance, healthcare, higher education, technology, service industries, and tourism are emerging as significant economic drivers. The cost of living in Erie is 8% lower than the state average and 10% lower than the national average. One of the most affordable cities in the United States, housing in Erie is 34% cheaper than the US average.
