Top 10 cities with the lowest cost of living – here’s where you get the most bang for your buck

Americans are feeling the financial squeeze from all sides: Whether it’s the high cost of housing, home insurance, utilities, gas or even groceries, there seems to be no hiding from high prices.

Or is there? Research shows that the cost of living varies greatly from state to state and even from city to city. So what are the cities where you can stretch your salary the most?

To find out which cities have the highest and lowest cost of living, the economic research team at Realtor.com® examined the latest regional price parity (RPP) data from the Bureau of Economic Analysis.

Topping the list is McAllen, TX.

With an APR of 86.92%, what would cost you $100 nationally would only cost $86.92 in McAllen. In other words, the cost of living there is 13% lower than the average.

“The metros with the lowest cost of living are largely concentrated in the South and Midwest,” says Realtor.com senior economic research analyst Hannah Jones. “These areas tend to be smaller, with only Birmingham, AL, representing the 50 largest US metros as the 50th largest.”

And it’s not just that you can bring home a bigger bag of groceries in these areas than anywhere else. You can also put down roots in these cities less expensively.

“Home prices in these areas were $100,000 or more below the national average in September,” Jones says.

John Macke, senior research analyst at John Burns Research and Consulting, says housing affordability plays a big role in cost-of-living data.

“Looking specifically at BEA’s regional price parity data, it is the housing component that is much lower in these metros compared to others, making it the main factor driving the lower cost of living. lifestyle,” says Macke.

So if you’re thinking of moving to an area where you’ll get more bang for your buck, read on.

Low housing costs are the main driver behind McAllen’s desirable low cost of living.

“Nationally, the home price-to-income ratio is about 5.5 as of August 2024, meaning home prices are 5.5 times the median household income,” Macke says. “In a city like McAllen, TX (4.8), home prices are much lower relative to incomes, lowering the overall cost of living.”

“McAllen’s location near the Mexican border has fostered an economy based on trade and manufacturing jobs,” says real estate agent Cara Ameer. “There is no income tax in Texas and property taxes are lower in McAllen. There is plenty of land to develop on, which helps keep prices more affordable. In addition, McAllen has a lower cost of living, so that along with employment opportunities helps create a more affordable environment.”

What residents pay per $100 of necessities: $86.92
Median home price: $275,000

Home of Pizza Hut, White Castle and Koch Industries, Wichita is no stranger to entrepreneurship, and with its low cost of living, it could be the perfect place to start your own business.

What residents pay per $100 of necessities: $89.16
Median home price: $292,700

Perhaps best known as the place where Bill and Hillary Clinton rose to early prominence in politics, Little Rock is no longer considered a place just for rural types.

“Arkansas has become quite popular with Californians, who can take advantage of affordability, a milder climate and an abundance of recreational opportunities like Lake of the Ozarks,” says Ameer.

What residents pay per $100 of necessities: $89.15
Median home price: $291,000

Toledo, known as the “Glass Capital of the World,” was recently ranked second on Realtor.com’s list of the most affordable metros in the US.

“Transportation [in Toledo] it’s easy and cheap. Mass transit is cheap,” says Jessica Lauren, a real estate investor in Columbus, OH. “Seniors and the school-age population benefit from discounted fares for public transport. Gas is free. Ohio does not add specialty taxes to gasoline.”

What residents pay per $100 of necessities: $90.18
Median home price: $237,450

Being the location of the fictional Dunder Mifflin Paper Co. branch. on the popular TV series “The Office” did Scranton no favors. But its affordable cost of living does.

“Property taxes, along with real estate costs, are much lower here than in suburban Philadelphia,” adds Denise Supplee, founder of Spark Rental in Doylestown, PA. “The job outlook is currently not good, but it is improving.”

What residents pay for $100 of necessities: $91.90
Median home price: $243,450

Mike Wall of eXp Realty/EZ Sell Homebuyers, who has sold and invested in Dayton real estate for 23 years, says the low cost of living here is due to five factors: an affordable housing market, modest growth of the population, a diverse work. non-tech-heavy market, lower transportation and health costs, and less urban density.

“While Dayton has a diverse economy with industries like aerospace, health care and manufacturing, the city doesn’t experience the rapid boom and bust labor market that drives high costs of living in other areas,” he says. “Salaries are competitive, but the lack of industries like tech, which have skyrocketed the cost of living in places like Silicon Valley, helps Dayton maintain affordability.”

What residents pay per $100 of necessities: $91.39
Median home price: $250,000

The cultural capital of Oklahoma, Tulsa has two museums, two opera companies and two ballet companies. It also has one of the country’s largest concentrations of art deco buildings, and even produced an American Idol winner: David Cook.

But all that culture will drive you far less than living in New York City.

What residents pay per $100 of necessities: $90.53
Median home price: $325,000

Real estate investor Lauren says of Akron property, “There isn’t an abundance of high-end housing or quality development in [Akron] compared to what you’ll find in other geographic regions,” which keeps housing prices low.

Also, Akron has a 15-year residential property tax abatement program that exempts 100% of the property value added for any newly constructed home or renovation (valued at $5,000 plus).

Grocery prices are also kept reasonable thanks to Akron’s large farming communities.

“The largest grocery chain in Akron gets its vegetables directly from local farmers, and the prices are significantly lower than prices in other states, even in farm-rich Indiana,” says Lauren. “There are also many farm stands in the rural areas adjacent to these three cities. Milk, for example, is cheap compared to California prices.

It also has the lowest average home price on this list, keeping its cost of living quite attractive.

What residents pay per $100 of necessities: $92.05
Median home price: $230,000

Birmingham may have a low cost of living, but it has high-quality healthcare: The city is home to the University of Alabama at Birmingham and has a renowned medical center as well as a medical school.

What residents pay per $100 of necessities: $91.15
Median home price: $300,000

Californians rushed to Texas during the great migration of the COVID-19 pandemic, but El Paso escaped the resulting price spike: It still has a low cost of living and housing costs are reasonable.

But people better hurry.

El Paso is no. 3 on the list of countries that may soon lose affordability thanks to mortgage rate cuts.

What residents pay per $100 of necessities: $91.21
Median home price: $298,125