Best Places to Live That Are Affordable

Over the last few years, housing prices have increased exponentially. In 2014, the average home price was about $217,000. Today, it is approximately $420,000 – and industry experts anticipate further growth in the year ahead.

Causes have been multifaceted, from limited inventories to bolstered demand. Does this mean that all hope is lost for young families looking to get their feet in the door of homeownership? Indeed, for people wondering if there are any affordable houses for sale near me, certain areas across the country show that affordability still exists.

A new Kiplinger study, using data from the Council for Community and Economic Research, Bureau of Labor Statistics, and the Census Bureau, identified some of the most affordable areas to live in the United States.

Let’s take a look at ten affordable places to live:

Best Places to Live That Are Affordable

So, what are the most affordable places to live? Here are ten places to live that are affordable:

1. Decatur, Illinois

Decatur, Illinois, is a town that is among the best places to live that are affordable, with a low cost of living (nearly a fifth lower than the national average) and a strong agricultural and manufacturing sector. Housing costs in Decatur are also much lower than the national average, and so is another costly expenditure: Healthcare. At the same time, Illinois is known to be the least tax-friendly state for middle-class families, with one of the highest sales tax rates. It does not tax retirement income, which could be considered an advantage.

2. Oklahoma City, Oklahoma

Oklahoma City, Oklahoma, has housing costs nearly 40 percent below the national average.

Both home prices and rents in this city are incredibly affordable compared to other areas in the United States. Compared to the national average of $520,771, home prices in Oklahoma average around $317,474. The average apartment rent in Oklahoma is around $800 compared to the national average of $1,578.

Living costs, from transportation to everyday goods and services, are much lower in Oklahoma City.

The one drawback? It is not a tax-friendly city for middle-class families.

3. Florence, Alabama

Florence, Alabama, has a low cost of living (nearly 16 percent below the national average). Housing-related expenses are nearly 35 percent lower than what the average American would pay. Healthcare costs are also low. In addition, Alabama is known to have one of the lowest property tax rates in the country (while also having the highest sales tax rate).

4. Amarillo, Texas

Amarilla, Texas, also has a cost of living nearly 16 percent below the national average.

Housing-related costs are almost 38 percent lower than the national average. The average price of a house in Amarillo is $266,625, much lower than the national average. Rents are also nearly 22 percent cheaper than the average American pays monthly. The region also has a low unemployment rate and significant job opportunities, making it rank among the best and most affordable areas to live in the United States.

5. Conway, Arkansas

Conway, Arkansas, has a cost of living around 15 percent below the national average. It is home to several high-tech companies – which can be surprising – thus accounting for its young population. There are also several renowned educational institutions and cultural attractions in this Arkansas town.

Living costs are minimal. Housing is quite affordable, running 25 percent below the national average. The costs of utilities, transportation, and healthcare are also comparatively lower.

6. Des Moines, Iowa

Des Moines, Iowa, has a nearly 15 percent lower cost of living than the national average. It has a robust economy and a vibrant cultural scene. It has a thriving insurance and financial sector. Healthcare, logistics, and manufacturing are also strong, providing significant job opportunities for local residents. The city is known to have unemployment and poverty rates well below state and national averages.

Healthcare costs are around 18 percent lower than the national average, and housing expenses are a third less than a typical American would pay. Transportation and utility costs are also significantly lower.

7. Knoxville, Tennessee

Knoxville, Tennessee, has a cost of living 14 percent less than the national average. It ranks high on affordability for most things, from food to transportation. The city has low housing costs, nearly a quarter below the national average. Rent is 27 percent less expensive, and it is also the second most tax-friendly state for retirees.

8. Colonial Village, Arlington

Do you want to live in the nation’s capital without living directly in the nation’s capital? Colonial Village, Arlington, might be suitable for you.

This place is not far from Washington, DC. It has enjoyed being on the list of best places to live. The region is known for its low cost of living, diversity, affordable housing, low crime rate, job opportunities, and short commute.

9. South Bend, Indiana

South Bend, Indiana, is one of the cheapest cities in the United States. It ranks well in all cost-efficiency categories and is considered one of the best cities to buy a house. However, while affordability is advantageous in this area, crime and safety can be problematic at times.

10. Harlingen, Texas

Harlingen, Texas, is one of the most affordable places to reside in The Lone Star State. The region is known explicitly for no state income tax and is considered to have the lowest cost of living in America.

Best Places to Live That Are Affordable

Many Americans are trying to stretch their dollars and cents. Shortly after the pandemic, the inflation bomb went off, resetting prices across the board, from food to medical care services to shelter. This situation has left many households behind, unable to attain the American Dream of homeownership. Still, despite the challenges of entering the U.S. real estate market, the country provides plenty of opportunities. It might require mobility, but it is a start.