If you’ve watched any HGTV you will have learned at least one thing… major cities like Los Angeles, New York, and Miami may be amazing but they are expensive. And that’s a severe understatement. Fortunately, the U.S. is a big place; it houses so many fantastic cities that can be a perfect alternative. But people overlook them because of their larger, more famous, or better-positioned counterparts. This is a true shame because they still offer a lot, and at a fraction of a price. So, we at Optio Money decided to present our list of the top 7 most affordable U.S. cities to live in.
Amazingly Affordable U.S. Cities
Some names on this list will surprise you simply because no one expects such metropolises to be so affordable. These are great options to consider, whether you’re a first-time buyer or you’re buying a second home. Without further ado, let’s jump into the top 7.
#7. Kansas City, MO
Cost of living: 15.8% below U.S. average
Median household income: $45.376
Median home cost: $146.300
Unemployment rate: 4.6%
Average rent: $1024
Kansas City is the most expensive on our list. Still, it boasts prices far below the national average.
Housing Market
The housing market in Kansas City is on fire right now. And from the looks of it, it will only get more competitive. Understandable – rapid growth and affordability make it a much-coveted destination.
Economy
Kansas City boasts a healthy and growing job market. This, in turn, makes finding a job here all but too easy.
Sectors that are on the constant lookout for new employees are:
- Health;
- Education;
- Government;
- Production;
If your job description falls under any of these niches, Kansas City is a prime destination for you.
#6. Des Moines, IA
Cost of living: 18.8% below U.S. average
Median household income: $46.430
Median home cost: $140.800
Unemployment rate: 3%
Average rent: $914
If you’re a fan of healthy living and the Great Outdoors, Des Moines is the city for you. With nearly 600 miles of hiking and biking trails, living here is not the only cheap thing. Fun is, too!
Housing Market
Affordability, a thriving economy, and high quality of living make Des Moines incredibly inviting. The housing market reflects this fact. It is becoming more competitive by the day. Still, prices remain down-to-earth, with tendencies of growth.
Economy
Once a mining and agricultural town, Des Moines evolved far beyond its humble origins. Today, the city is a thriving and alluring urban center for young professionals, students, and entrepreneurs.
Des Moines carries the nickname “Hartford of the West” due to many insurance companies that have headquarters here. They are significant employers in the area, but not the only ones.
In recent years, the city saw a rapid expansion of the high-tech industry. Dubbed the “Silicon Prairie”, the area around Des Moines attracts young professionals with ties in I.T. and communication technologies.
#5. Buffalo, NY
Cost of living: 20.5% below U.S. average
Median household income: $34.268
Median home cost: $85.300
Unemployment rate: 5.9%
Average rent: $1100
The State of New York is home to some of the most beautiful landscapes in the U.S., and a big portion of it surrounds Buffalo. Its position between Lake Erie and Lake Ontario offers unique fun and leisure opportunities. And proximity to Niagara Falls only adds to its allure. This, and the fact that it is one of the most affordable U.S. cities to live in, makes it baffling why Buffalo is so underrated.
Housing market
Buffalo’s housing market is currently exploding. Houses are selling quickly, for the asking price, or extremely close to it. If you want to become a proud homeowner, it’s advisable to hurry. Check your credit score, apply for a mortgage, and dive right into this beautiful city. At the risk of sounding like telemarketers: get yours before it’s gone!
Economy
The city’s economy was steadily growing up until Coronavirus hit. Things have slowed down but are looking up. Despite this misfortune, unemployment in Buffalo is at a record low. Employers are hiring left and right, so you won’t have trouble finding a job.
Sectors that are desperate for employees are:
- Education;
- Health care;
- High-tech, IT, and communications;
- Hospitality;
- Light manufacturing.
#4. Birmingham, AL
Cost of living: 25.9% below U.S. average
Median household income: $31.217
Median home cost: $65.500
Unemployment rate: 3.7%
Average rent: $1078
Deemed “The Magic City” due to its rapid growth, Birmingham today continues to justify the nickname. And not only because of its thriving nature – but because of the culture that pervades it. Alabama Symphony, Ballet, and Theater are only a few establishments that call the city home. Festivals abound in the city as well, with something happening virtually every week. Add to that an exquisite nightlife scene, and you’re looking at the city that’s never boring.
Housing Market
Saying that home prices in Birmingham are “low” is not enough. With the median price of only $65.500, Birmingham might be one of the most affordable U.S. cities to become a homeowner in.
Economy
If you’re relocating to Birmingham to try and find a job, you couldn’t have picked a better place. The city is one of the best places for jobseeker in the U.S. The job market is steadily growing, and Birmingham’s economy is one of the strongest in the state.
The biggest employers are in the medical and architecture field. Still, the education and banking sectors are on the constant lookout for young professionals.
#3. Memphis, TN
Cost of living: 24% below U.S. average
Median household income: $37,199
Median home cost: $85.700
Unemployment rate: 9.8%
Average rent: $850
Ah, Memphis! The birthplace of The King himself! Heartland of Delta Blues. A true paradise for music lovers, especially those that bow to the kings of strings.
However, fantastic music is not the only thing Bluff City offers. Tennessee is already one of the most affordable states in the U.S., and Memphis tops even this, being even more affordable. So put on your blue suede shoes because it’s prime time for walking in Memphis.
Housing market
The prospect of buying the house and living in Memphis is already good enough. Homes are already close to 60% lower than in the rest of the U.S. However, what really “sells” the place, is the fact that there are no state, city, or county income taxes. In other words: your money will go a long way here. Just be mindful that homeowner’s insurance is a must since the city lies in the (in)famous “Dixie Alley”.
Economy
The ongoing pandemic had a significant impact on the city’s economy. Still, Memphis is nothing if not resilient. If you’re looking for a job, the best chances you’ll find one are in:
- Education;
- Distribution;
- Transportation;
- Biotech;
- Health services.
#2. Wichita Falls, TX
Cost of living: 25.5% below U.S. average
Median household income: $43.751
Median home cost: $95.700
Unemployment rate: 3.7%
Average rent: $635
Wichita Falls is one of those cities with a distinctive small-town feel to it. People are warm and welcoming, and you won’t have trouble fitting in. Despite what some say, “southern hospitality” is alive and well in Texas.
Housing market
Although houses aren’t as cheap here as in Birmingham or Dayton, they are still more than affordable. However, if you’re not looking to buy for the moment, you’ll be happy to know that renting is a good and viable option. With average monthly rent at only $635, Wichita Falls is definitely the best place you can choose while undecided.
Economy
A study conducted in 2020 showed that Wichita Falls is the best place for working families. This goes to your advantage if you’re moving with a family or looking to start one. In recent years, Wichita Falls switched its focus from manufacturing to aerospace and aviation. With major names such as Arconic and Sealed Air moving to the area, this presents a unique opportunity if you have experience and expertise in this sector. Otherwise, look into health, engineering, and I.T. for reliable employment.
#1. Dayton, OH
Cost of living: 28.6% below U.S. average
Median household income: $28.174
Median home cost: $50.600
Unemployment rate: 5.8%
Average rent: $829
If this were a contest, Dayton would be a clear winner. Everything here is more than affordable: housing, rent, groceries, fun. You name it – Dayton will have a budget option.
Caption: Aerospace and Aeronautics are still the two strongest sectors in Dayton, OH.
Alt: Two planes at sunset.
Known as “the birthplace of aviation”, Dayton today is a thriving city. It’s surrounded by immense natural beauty and offers ample opportunities for fun and work. Of course, the fact that Ohio is one of the safest states from natural disasters is a big plus.
Housing Market
Not much that we can say here without sounding redundant. With the average home price of only $50.000, Dayton’s real estate is clearly up for grabs.
Economy
For over a century, Dayton was the hotspot for the aerospace and aeronautics sectors. In recent decades, high-tech and service-based sectors have become more prevalent. The unemployment rate is steadily decreasing, making Gem City a prime location for job seekers and young professionals.
Good choices are not only about the cities
In fact, choosing movers is as important as choosing the right city for you. It’s no secret that relocation can be pricey, and with the expansion of fraudulent movers and moving scams – incredibly risky, too. Therefore, your choice of movers impacts the overall experience.
Caption: With good movers, you will save money in the long run.
Alt: A woman looking at orange piggy-bank.
It’s always great to research movers in-depth, as well as to learn about some common moving mistakes so that you can have a relocation that is easy and simple. And that’s the optimal way to start your new life.
Your money is worth more in the cities on our list
As you can see, the most affordable U.S. cities to live in are a far cry from underdeveloped or forgotten. They might not be as glamourous as their famous counterparts, but they offer all the amenities and advantages of large cities. So, if you’re looking for budget-friendly options, any city on this list will suit your needs.
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