Here Are the 10 Most Affordable Southern U.S. Cities to Live In
It seemed as if everyone had the inclination to move over the past few years. And while the pandemic-induced moving boom has slowed, many Americans are still itching for a change of scenery.
According to North American Moving Services, about 19% of the U.S. population will move over the next year. One of the hottest housing markets is now in the South. I know, because where I live in South Carolina, it seems as if every out-of-towner is buying a house here.
If you’re considering a move to the South, there are a handful of affordable cities you might want to consider. Here are 10 of them — plus tips to lower your cost of living, no matter where you live.
10 affordable cities in the South
Before diving in, it’s important to clarify that some of these Southern cities aren’t cheap. However, the cost of living in these cities is affordable compared to the median income in these locations.
For example, I’ve often visited Charleston, South Carolina, and know that houses in the Holy City aren’t cheap. However, if you’re earning the median household income of $83,891, it’s technically affordable compared to the estimated annual cost of living of $74,353.
Based on these factors, here are 10 affordable Southern cities:
| Affordability index | City | Cost-of-living estimate | Median household income |
|---|---|---|---|
| 1 | McKinney, Texas | $70,778 | $113,286 |
| 2 | Edmond, Oklahoma | $65,305 | $96,389 |
| 3 | Midland, Texas | $70,997 | $90,448 |
| 4 | Hilton Head Island, South Carolina | $76,251 | $93,694 |
| 5 | Austin, Texas | $71,435 | $86,556 |
| 6 | Charleston, South Carolina | $74,353 | $83,891 |
| 7 | Chapel Hill, North Carolina | $76,178 | $85,940 |
| 8 | Conroe, Texas | $64,722 | $71,630 |
| 9 | Atlanta, Georgia | $70,486 | $77,655 |
| 10 | Raleigh, North Carolina | $71,581 | $78,631 |
Data source: Census Bureau (2024), Council for Economic and Community Research (2024), calculations by The Motley Fool Ascent.
How to lower your cost of living where you live
There are a lot of factors that contribute to someone’s cost of living, and while no two budgets are the same, here are some of the core expenses most people have:
- Mortgage or rent payments
- Utilities
- Debt payments
- Groceries
- Clothing
- Transportation
- Healthcare
- Insurance
While moving to a more affordable city can help with many of these costs, there are a few ways to reduce your cost of living where you live now (just in case you’re not ready to pack your bags and head South just yet).
1. Try a budgeting app
Budgeting doesn’t have to be boring. There are tons of great budgeting apps that easily connect your bank account to the app, giving you instant insight into what you spend your money on.
I use Rocket Money, personally. There’s a free version that automatically categorizes my spending, has a calendar of recurring expenses, and allows me to easily search transactions.
Okay, I’ll admit it: Downloading the budgeting app was the easy part. Actually cutting back on spending will require some work.
I’m pretty frugal with my money, but there are times when I spend more. No matter your financial situation, there’s likely one or two things you can cut out to improve it. Maybe it’s eating out too many dinners or a few sports subscription packages that allow you to see every game (but cost a little too much).
3. Shop for cheaper insurance
Insurance costs are among America’s top monthly expenses. Unfortunately, homeowners insurance has increased 20% over the past two years, and auto insurance has increased 19.5% in just the past year alone.
That’s why comparison shopping for both is so important right now. Most people can lower their premiums when they compare rate quotes. Bundling your home and auto insurance is also an excellent way to receive up to a 25% discount.
Of course, you can also look for a cheaper place to live or find additional income streams to improve your situation. But if you can’t make significant changes to lower your cost of living, creating a budget, cutting out some expenses, and reducing your insurance costs are solid steps to improving your financial situation.
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