The recent wave of inflation and the high amount of student debt for millennials has changed population dynamics. Several surveys show that millennials continue to live with their parents. The economic devastation ushered in by both the coronavirus crisis and the resulting inflation forced more millennials to move back home. A study from Property Management shows that 25% of millennials were living with their parents as of December 3rd, 2022. It also adds that one in eight millennials moved back with their parents in 2022, as they wanted to save on high rental costs. These costs were not limited only to rent, as 44% of the millennials polled also indicated that high mortgage costs were the primary reason that millennials did not buy a home for themselves.
The costs however are not the only reason several people are wary of starting a family. A report from Vox shares that a lot of people feel uneasy in the current environment. Not only does the rapid rise in school shootings weigh heavily on their minds, but the historic baby formula shortage that took place last year as well as the rising costs of childcare make potential parents think twice before making the plunge. The dilemma of child care costs in America is another important factor in this equation. For instance, while childcare costs average $15,501 per year in Connecticut - higher than college tuition in some cases - childcare workers make just $13.22 per hour, significantly lower than the median hourly wage of $22.
Additionally, while childcare costs are high, they are not the only ones that parents have to fret about. Taking the example of Washington D.C., one of the most expensive places to live in America, a two child, two parent household costs $11,212 per month or $134,547 a year for a 'modest' standard of living according to the Economic Policy Institute. The second largest portion of the annual costs, as expected in America, is for housing as it costs $19,414 per year. The third largest chunk unsurprisingly goes to healthcare, with these costs sitting at $16,533. However, the largest portion is again for childcare, as it accounts for a whopping $42,046 per year - which in some cases is equivalent to the cost of a postgraduate degree.
Putting these conclusions together, it's clear that not only is buying a house one of the most expensive endeavors in modern day America, but even if you do have a house and decide to start a family, childcare costs will continue to eat a significant portion of your budget. However, there are some cities in the US which are relatively cheaper and remain attractive for young families.
With these details in mind, let's take a look at the best affordable cities to raise a family in America.
Our Methodology
We used a city screener developed by Niche to pick American cities which are not only affordable but also suitable for raising a family. While sorting the cities out, public schools quality and total costs of living were taken into account. You can also take a look at 25 Best Places to Live in the US for Families which uses a similar methodology.
Best Affordable Cities to Raise a Family
32. Lubbock, Texas
Lubbock is one of the largest cities in Texas. It is an economic hub within the lone star state and the largest cotton growing region in the world. Median rent sits at $1,000 while median home prices are $156,400.
31. Oklahoma City, Oklahoma
Oklahoma City is the state capital of Oklahoma and one of the largest cities in America in terms of population. Its median rent sits at $633, which is quite below the national median of $1,163. Median home prices are $168,900.
30. Houston, Texas
Houston is an economic hub within Texas and the fourth most populous city in the U.S. It is also classified as a global city and has a strong presence in the energy sector, with several large companies headquartered there.
29. Little Rock, Arkansas
Little Rock is the capital of Arkansas. Several large aeronautical and financial firms have a presence in the city. The median rent of $940 and median home prices of $179,500 are both below the national figures. Residents appreciate the city's blend of natural beauty and an urban environment.
28. Greensboro, North Carolina
Greensboro is one of the most populous cities in North Carolina. The city serves as a logistics hub within its state, and the city has a strong presence of the automotive manufacturing sector.
27. Durham, North Carolina
Durham is another populous city in North Carolina, ranking just below Greensboro. The city is known for its Duke University, one of the best universities in the world. However, median home prices are above the national median.
26. Tulsa, Oklahoma
Tulsa is a large city in Oklahoma. The city has a strong backbone that is made up of small businesses, which leads to a better distribution of wealth. At the same time, the median rent of $882 and home prices of $151,500 are below national figures.
25. Kansas City, Missouri
Kansas City is the largest city in Missouri and one of the largest in America as well. Naturally, this gives it a small economy, with firms such as Sanofi and Dairy Farmers of America present in the city. Median rent is $1,040 and median home prices are $175,400.
24. St. Petersburg, Florida
St. Petersburg is located right at the tip of Florida. It has a tropical climate with hot summers. While median rent of $1,251 is higher than the national value, home prices of $242,100 are still below it.
23. Tallahassee
Tallahassee is the capital of Florida. Most of the employment in the area comes from state institutions. Residents appreciate the city for the opportunities that it provides but without the fast paced living of an urban environment.
22. St. Paul, Minnesota
St. Paul is the capital of Minnesota. It is also an economic hub within the state, and the median family income stood at $74,852 as of 2020. Large chemical, consumer goods, and financial firms are based in the city. Median rent is $1,080 and median home prices are $232,400.
21. Fargo, North Dakota
Fargo is the most populous state in North Dakota. It is a highly rated place to start a small business. Median rent is a low at $892, and median home prices are $232,900.
20. Denton, Texas
Denton is a city in Northern Texas. Its largest employers are universities with manufacturing and retailing also playing a strong role. Median rent sits right at the national average, but the median home prices are quite higher. Most crimes except rape are below the national average. Residents like the city's parks and close knit community.
19. Gainesville, Florida
Gainesville is a city in Northern Florida. The city is quite noted for its low cost of living, particularly due to its cheap restaurants. However, it also has a weak job market with more graduates than the economy can absorb. Its largest employer is the University of Florida, and median home values of $182,400 are significantly below the national figures.
18. Murfreesboro, Tennessee
Murfreesboro is a midsized city that was also the capital of Tennessee in the 19th century. The city has a strong presence of the automotive, healthcare, and financial industries. However, real estate is quite pricey, with a median home price of $274,600.
17. Pittsburgh, Pennsylvania
Pittsburgh is one of the largest cities in Pennsylvania and an economic hub in the state. Several notable firms such as Heinz, PNC Financial, and U.S. Steel are headquartered in the city. To make matters even better, median home prices are a low $147,600.
16. Sioux Falls, South Dakota
Sioux Falls is the largest city in South Dakota. The city is most notable for its zero corporate tax, with healthcare and financial firms utilizing it to the full extent. Median rent is a low $892 while median home prices are $218,600.
15. Minneapolis, Minnesota
Minneapolis is the largest city in Minnesota in terms of population. It is an economic hub in the state and its region, and several large firms such as Target are headquartered there.
14. Charlotte, North Carolina
Charlotte is North Carolina's most populous city. It is one of the largest financial centers in the U.S., with major banks and financial institutions both present and headquartered in the city.
13. Irving, Texas
Irving is one of the most diverse cities in Texas. Its median rent is above the national figures but home prices are below it.
12. Rochester, Minnesota
Rochester is one of the largest cities in Minnesota. The city is ranked as one of the best places in the U.S. to buy a home, and residents also appreciate it as a good place to raise a family.
11. Lincoln, Nebraska
Lincoln is the capital of Nebraska and one of the largest cities in the state. Median home values sit at $193,800 while the median rent is $920.
10. Huntsville, Alabama
Huntsville is located in Alabama's mountainous region and is the most populated city in the state. Median home values and rent are below the national average.
9. Tampa, Florida
Tampa is a coastal city in Florida. Both median home values and rents are higher than the national values.
8. Omaha, Nebraska
Omaha is the largest city in Nebraska. The median household income in the area is $65,359, and residents appreciate it for its safety and livability.
7. Lexington, Kentucky
Lexington is one of America's largest cities in terms of area. The median rent is $967 while median home values are $216,800 - both below the national figures.
6. Columbia, Missouri
Columbia is one of the oldest cities in the U.S. since it was founded in 1821. The median household income is $57,463, which is below the national average.
