In the wake of the COVID-19 pandemic, the cost of living has soared in the United States. Over the 12 months ending in June 2022, consumer prices surged by a multi-decade high of 9.1%. Though the Consumer Price Index has fallen in the years since, at 2.9%, inflation remains above the Federal Reserve’s 2% target rate — and millions of Americans are feeling the pinch.
According to a recent survey conducted by the U.S. Census Bureau, 93% of American households reported elevated stress caused by rising prices, and over 57% of households had difficulty paying for usual expenses in the last week.
Notably, rising prices are not affecting all parts of the U.S. equally. In much of the country, goods and services are far less expensive than they are on average nationwide. In an era of historic inflation, when the cost of living is weighing heavily on the minds and pocketbooks of most Americans, people are flocking to major cities that are still relatively affordable.
Using data from the U.S. Census Bureau and the Bureau of Economic Analysis, 24/7 Wall St. identified the cheapest metro areas where the most Americans are moving to. We reviewed data on cost of living, housing affordability, and net-migration for 374 metropolitan areas. Only cities with a cost of living below the national average, and where the ratio of home values to median incomes are below the average across all metros, were considered. The metro areas on this list are ranked by population change due to net-migration between April 2020 and July 2023.
Among the 36 metro areas on this list, population change from migration alone ranges from a net-gain of 10,200 people to nearly 230,000. Across the country, the cost of living in a metropolitan area is higher than it is outside of metro areas. Still, in every city on this list, consumer prices are lower than they are across the U.S. as a whole. In several metro areas Americans are flocking to, the overall cost of living is over 10% below the national average.
In recent months, housing has been a primary driver of inflation — but in the metro areas on this list, homes remain relatively affordable. Across all U.S. metro areas, the typical home is worth about 4.3 times more than the annual earnings of a typical household. In contrast, the median home value in most metro areas on this list is less than four times the local median household income. (Here is a look at the most affordable housing market in every state.)
The states with the lowest overall cost of living are disproportionately concentrated in the South and in the Midwest. In keeping with broader regional trends, 27 metro areas on this list are in the South and seven are in the Midwest. Meanwhile, none are located in Western states, and the only two Northeastern metro areas are in Pennsylvania. (Here is a look at the most expensive states to live in.)
Why It Matters
Every year in the United States, millions of Americans pack up and relocate to a new home. Reasons for moving vary from person to person, but in recent years, a significant share of movers have cited reasons related to the economy and housing. With consumer prices rising at historic rates, many cities with relatively affordable housing and a low overall cost of living have reported a rapid influx of new residents.
36. Sebring, FL
Population change from migration, 2020-2023: +10,202 people
Overall cost of living: 9.8% less than average
Median home value in 2022: $176,900
Median household income in 2022: $52,799
Total population: 105,618
35. Tuscaloosa, AL
Population change from migration, 2020-2023: +10,418 people
Overall cost of living: 13.0% less than average
Median home value in 2022: $237,300
Median household income in 2022: $58,620
Total population: 277,274
34. Tyler, TX
Population change from migration, 2020-2023: +10,945 people
Overall cost of living: 7.8% less than average
Median home value in 2022: $224,600
Median household income in 2022: $68,192
Total population: 241,922
33. Sherman-Denison, TX
Population change from migration, 2020-2023: +11,688 people
Overall cost of living: 7.4% less than average
Median home value in 2022: $250,500
Median household income in 2022: $66,106
Total population: 143,131
32. Clarksville, TN-KY
Population change from migration, 2020-2023: +12,339 people
Overall cost of living: 8.9% less than average
Median home value in 2022: $251,800
Median household income in 2022: $65,113
Total population: 336,447
31. Kingsport-Bristol, TN-VA
Population change from migration, 2020-2023: +12,782 people
Overall cost of living: 13.8% less than average
Median home value in 2022: $185,700
Median household income in 2022: $52,887
Total population: 310,483
30. Sioux Falls, SD-MN
Population change from migration, 2020-2023: +13,066 people
Overall cost of living: 9.8% less than average
Median home value in 2022: $282,200
Median household income in 2022: $77,605
Total population: 289,295
29. Hagerstown-Martinsburg, MD-WV
Population change from migration, 2020-2023: +13,496 people
Overall cost of living: 6.5% less than average
Median home value in 2022: $268,800
Median household income in 2022: $68,083
Total population: 303,665
28. Cincinnati, OH-KY-IN
Population change from migration, 2020-2023: +13,642 people
Overall cost of living: 6.5% less than average
Median home value in 2022: $248,700
Median household income in 2022: $75,062
Total population: 2,268,393
27. Little Rock-North Little Rock-Conway, AR
Population change from migration, 2020-2023: +13,823 people
Overall cost of living: 10.8% less than average
Median home value in 2022: $201,700
Median household income in 2022: $60,931
Total population: 757,945
26. Kansas City, MO-KS
Population change from migration, 2020-2023: +13,833 people
Overall cost of living: 7.9% less than average
Median home value in 2022: $274,500
Median household income in 2022: $75,280
Total population: 2,209,152
25. Harrisburg-Carlisle, PA
Population change from migration, 2020-2023: +14,482 people
Overall cost of living: 4.1% less than average
Median home value in 2022: $237,800
Median household income in 2022: $73,739
Total population: 603,493
24. Killeen-Temple, TX
Population change from migration, 2020-2023: +14,817 people
Overall cost of living: 8.4% less than average
Median home value in 2022: $229,100
Median household income in 2022: $62,904
Total population: 496,228
23. Greensboro-High Point, NC
Population change from migration, 2020-2023: +15,449 people
Overall cost of living: 7.3% less than average
Median home value in 2022: $217,000
Median household income in 2022: $60,271
Total population: 784,101
22. Allentown-Bethlehem-Easton, PA-NJ
Population change from migration, 2020-2023: +15,504 people
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