24/7 Wall St. Insights

• The Consumer Price Index has soared to historic highs in recent years.
• With the cost of living on the rise, many cities with lower consumer prices have reported an influx of new residents.
• Also: 2 Dividend Legends to Hold Forever   

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
• Overall cost of living: 2.0% less than average
• Median home value in 2022: $288,500
• Median household income in 2022: $76,041
• Total population: 871,229

21. Springfield, MO

• Population change from migration, 2020-2023: +15,815 people
• Overall cost of living: 13.1% less than average
• Median home value in 2022: $223,900
• Median household income in 2022: $57,822
• Total population: 484,613

20. Savannah, GA

• Population change from migration, 2020-2023: +16,379 people
• Overall cost of living: 3.8% less than average
• Median home value in 2022: $290,100
• Median household income in 2022: $72,098
• Total population: 418,373

19. Augusta-Richmond County, GA-SC

• Population change from migration, 2020-2023: +17,162 people
• Overall cost of living: 8.0% less than average
• Median home value in 2022: $217,500
• Median household income in 2022: $64,581
• Total population: 622,829

18. Des Moines-West Des Moines, IA

• Population change from migration, 2020-2023: +18,432 people
• Overall cost of living: 7.9% less than average
• Median home value in 2022: $258,800
• Median household income in 2022: $80,061
• Total population: 729,053

17. Chattanooga, TN-GA

• Population change from migration, 2020-2023: +19,844 people
• Overall cost of living: 7.5% less than average
• Median home value in 2022: $265,800
• Median household income in 2022: $69,018
• Total population: 573,767

16. Columbus, OH

• Population change from migration, 2020-2023: +21,713 people
• Overall cost of living: 6.0% less than average
• Median home value in 2022: $289,200
• Median household income in 2022: $75,777
• Total population: 2,161,511

15. Pensacola-Ferry Pass-Brent, FL

• Population change from migration, 2020-2023: +22,038 people
• Overall cost of living: 4.5% less than average
• Median home value in 2022: $285,700
• Median household income in 2022: $68,034
• Total population: 523,146

14. Winston-Salem, NC

• Population change from migration, 2020-2023: +22,105 people
• Overall cost of living: 7.6% less than average
• Median home value in 2022: $231,200
• Median household income in 2022: $61,556
• Total population: 688,471

13. Tulsa, OK

• Population change from migration, 2020-2023: +27,016 people
• Overall cost of living: 9.5% less than average
• Median home value in 2022: $212,100
• Median household income in 2022: $63,396
• Total population: 1,033,157

12. Columbia, SC

• Population change from migration, 2020-2023: +27,579 people
• Overall cost of living: 6.4% less than average
• Median home value in 2022: $218,300
• Median household income in 2022: $63,933
• Total population: 847,804

11. Spartanburg, SC

• Population change from migration, 2020-2023: +29,585 people
• Overall cost of living: 8.4% less than average
• Median home value in 2022: $231,300
• Median household income in 2022: $57,755
• Total population: 345,831

10. Richmond, VA

• Population change from migration, 2020-2023: +31,677 people
• Overall cost of living: 2.3% less than average
• Median home value in 2022: $336,500
• Median household income in 2022: $81,388
• Total population: 1,341,227

9. Indianapolis-Carmel-Greenwood, IN

• Population change from migration, 2020-2023: +32,362 people
• Overall cost of living: 6.3% less than average
• Median home value in 2022: $255,900
• Median household income in 2022: $75,824
• Total population: 2,142,193

8. Huntsville, AL

• Population change from migration, 2020-2023: +33,766 people
• Overall cost of living: 7.3% less than average
• Median home value in 2022: $292,700
• Median household income in 2022: $81,066
• Total population: 514,465

7. Fayetteville-Springdale-Rogers, AR

• Population change from migration, 2020-2023: +35,176 people
• Overall cost of living: 9.3% less than average
• Median home value in 2022: $291,600
• Median household income in 2022: $73,364
• Total population: 576,724

6. Oklahoma City, OK

• Population change from migration, 2020-2023: +42,099 people
• Overall cost of living: 8.6% less than average
• Median home value in 2022: $224,400
• Median household income in 2022: $66,301
• Total population: 1,459,380

5. Greenville-Anderson-Greer, SC

• Population change from migration, 2020-2023: +48,574 people
• Overall cost of living: 6.8% less than average
• Median home value in 2022: $259,600
• Median household income in 2022: $65,681
• Total population: 958,958

4. Knoxville, TN

• Population change from migration, 2020-2023: +50,283 people
• Overall cost of living: 8.7% less than average
• Median home value in 2022: $281,900
• Median household income in 2022: $67,801
• Total population: 906,674

3. San Antonio-New Braunfels, TX

• Population change from migration, 2020-2023: +115,908 people
• Overall cost of living: 4.9% less than average
• Median home value in 2022: $275,700
• Median household income in 2022: $70,538
• Total population: 2,655,342

2. Atlanta-Sandy Springs-Roswell, GA

• Population change from migration, 2020-2023: +131,924 people
• Overall cost of living: 1.2% less than average
• Median home value in 2022: $362,600
• Median household income in 2022: $84,876
• Total population: 6,222,908

1. Houston-Pasadena-The Woodlands, TX

• Population change from migration, 2020-2023: +229,159 people
• Overall cost of living: 1.2% less than average
• Median home value in 2022: $284,100
• Median household income in 2022: $74,863
• Total population: 7,340,118

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