Yahoo Finance The 25 least expensive U.S. cities to live in
Everything’s cheaper in two Texas cities, according to a new analysis.
According to a study by the Council for Community and Economic Research, two cities in the Lone Star State ranked as the cheapest places to live in America.
The research — which looked at 257 cities over the first quarter of this year and analyzed the cost of housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services — found that the Texas city of Harlingen was the cheapest place overall, followed by McAllen, Texas. (We previously looked at the most expensive.)
The South featured heavily on the least expensive list. And across the board, housing costs — as well as goods and services expenses — in these cities were much lower compared to the national average.
Here’s a quick look at the top 10, with extra pricing context from RentCafe, Rent Jungle, Data USA:
Harlingen, Texas
Average rent: $717
Average meal: $12
Median household income: $38,122
McAllen, Texas
Average rent: $811
Average meal: $12
Median household income: $45,057
Kalamazoo, Michigan
Average rent: $952
Average meal: $13.50
Median household income: $37,438
Memphis, Tennesse
Average rent: $813
Average meal: $13
Median household income: $39,333
Richmond, Indiana
Average rent: $1,432
Average meal: N/A
Median household income: $33,381
Joplin, Missouri
Average rent: $1,430
Average meal: $10
Median household income: $41,063
Tupelo, Mississippi
Average rent: $906
Average meal: $12
Median household income: $45,161
Fayetteville, Arkansas
Average rent: $1,432
Average meal: $12
Median household income: $41,158
Conway, Arkansas
Average rent: $687
Average meal: $13
Median household income: $46,741
Pittsburg, Kansas
Average rent: $638
Average meal: N/A
Median household income: $31,948
Even the South is getting more expensive
While home prices in the South have been historically more affordable than other parts of the U.S., recent trends are heading the other direction.
According to a separate study by Clever Real Estate, the gap between national home prices and household income has increased since the 1960’s — a 121% increase in home prices was only matched by a 29% increase in median household income, adjusted for inflation.
The divide between prices and income in the South, on the other hand, hasn’t been widening as quickly (as seen below).
For example, the median price of homes purchased in 2018 was around $250,000 across the U.S. In the South, it was only $240,000, according to a report from the National Mortgage Professional.
But current trends project that the South will see home prices increase disproportionately relative to income levels, the report added.
Fro 2000 to 2017, the growth rate of income was “almost stable” at 2%, the report found. On the other hand, the growth rate of home prices almost doubled, at 75%.
Hence based on the current projections, the South too might become less affordable.
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Aarthi is a writer for Yahoo Finance. Follow her on Twitter @aarthiswami.
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