Most affordable cities in the U.S.: What tops the list?

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last updated 24 March 2023

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With prices rising, you might feel tempted to head where the cost of living is lower. That's largely going to be south of the Mason-Dixon line, in states like Texas and Alabama.

Here's a look at the 12 cheapest places to live in the U.S., based on data from the Council for Community and Economic Research's (C2ER) calculations of living expenses, and compiled by Kiplinger. The list only includes metro areas with at least 50,000 residents, with the index accounting for prices for housing, groceries, utilities, transportation, health care, and miscellaneous goods and services.

This metro area spans two states �� Georgia and South Carolina — and boasts a cost of living that's 16.4 percent below the U.S. average. Housing costs, which average about a third less than what's typical in America, help keep the cost of living low, as do transportation costs that are 22 percent below average and utilities and health-care costs that are 12 percent lower. Further, Georgia "happens to be one of the more tax-friendly states for retirees," Kiplinger says.

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On the whole, Arkansas "has one of the lowest cost of living metrics in America," reports Entrepreneur, and Conway, Arkansas, is a standout for affordability with a cost of living 16.7 percent below the national average. Situated in the Little Rock-North Little Rock-Conway metro area, Conway is home base for tech companies including information technology firm Insight Enterprises, as well as three colleges that have earned it the nickname "The City of Colleges."

Mobile is described as a "Gulf Coast gem" by Kiplinger. Alongside a cost of living that's 17.2 percent below U.S. average, Mobile boasts a distinctive culture thanks to its "colonial past and mixture of Creole, African, and Catholic heritage," says Kiplinger. The city has art museums, dance, and music, and also offers job opportunities in industries like shipbuilding, health care, high tech, and engineering.

Joplin, Missouri, isn't only the spot where infamous bank robbers Bonnie and Clyde hid out — it's also a city with a low cost of living, at 17.5 percent below U.S. average to be exact. The city has a notable number of key employers, including two major hospitals and General Mills, Schaeffler Group, and Leggett & Platt. Cost-wise, the city rates well in housing, groceries, health care, and utilities.

Next up on the list is a Texas town located along the border. In McAllen, the cost of living is 21.8 percent below the U.S. average, though the poverty rate is also more than double both the Texas rate and the U.S. rate. Still, Kiplinger notes some bright spots: McAllen is "famous for bird watching because of its location on a major migration route" and it has an International Museum of Art & Science.

Agriculture is central to the local economy. Health care and telecommunications are growing industries in this city of around 423,000, though the poverty and unemployment rates remain high. Still, if it's low prices you're after, you'll find them nearly across the board in Harlingen — the average home price is $182,500 less than the U.S. average and apartment rent is 45 percent lower than the national average.

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Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.