Congratulations, you made it to the US. One of the basic considerations before relocating to a new country is accommodation. Now, you are wondering about the cheapest areas to live in the US.
There are several factors to consider before making a decision. According to Kiplinger, the cheapest places to live for city dwellers in the US are mostly located in the south. However, cheap prices may be attractive, but the allure can fade if jobs are hard to come by, paychecks are small or the area offers little to do.
With that said, let us go ahead and list the top 9 cheapest places to live in the US. Note that this article focuses on the cheapest areas for city dwellers.
Decatur, Illinois
Decatur is the largest city in and the county seat of Macon County, Illinois. With a population of just 70,396, Decatur currently ranks as the cheapest place to live in the U.S. among cities with metro areas, according to a study by Kiplinger. The city is best known as an agricultural and manufacturing centre, with a cost of living about 22 per cent below the U.S. average.
Also, the student population, which includes Millikin University’s approximately 1,875 students and the roughly 2,075 people studying at Richland Community College, contributed to Decatur’s status as the cheapest area to live in the US. Do not forget the fact that Illinois is among the least tax-friendly states for middle-class families.
Housing costs are 45 per cent lower than the national average in metro Decatur. Also, healthcare, utilities and transportation are much cheaper. The median household income is $49,714, while struggling with an unemployment rate is 6.1 per cent, no thanks to Archer Daniels Midland’s (ADM) departure following a price-fixing scandal. The city also hosts some facilities of Caterpillar (CAT), the world’s largest maker of construction and mining equipment.
Harlingen, Texas
Harlingen is located in the southernmost part of Texas. With a population of 425,208, the cost of living is 20.4 per cent below the U.S. average. The average home price in Harlingen is significantly $178,000 less than the U.S. average. Also, residents get to save about 13% on a good cut of steak compared to the national average. Everything, including groceries to gasoline, costs less in Harlingen based on the average $50,649 household income.
You can rent an apartment for the average amount of $806 per month, significantly less than the average of $1,440 on the national level. Agriculture remains the centre of Harlingen’s local economy, but other sectors like healthcare and telecommunications are getting attention too.
The unemployment rate is 4.9 per cent.
Conway, Arkansas
Conway City is the home of some high-tech companies, including information technology firm Insight Enterprises (NSIT). Also known as “The City of Colleges”, Conway hosts three tertiary institutions: the University of Central Arkansas, Hendrix College and Central Baptist College. Its relatively young population of 67,616 reportedly contributed to the low cost of living which is around 18.4 per cent below the U.S. average.
Although Conway’s median home value of $236,400 is quite high, well below the U.S. median. The unemployment rate is 2.8 per cent, while groceries, transportation and healthcare costs are also comparatively modest.
McAllen, Texas
With a population of 888,367 people, McAllen is one of the cheapest areas to live in the US. However, the McAllen-Edinburg-Mission metro area has a poverty rate of 27.6 per cent, which is more than double the Texas rate of 13.9 per cent and the U.S. rate of 12.6 per cent.
Known for being the hub of bird watching due to its strategic location, housing costs are 41.5 per cent lower than the national average. Also, healthcare expenses are 26 per cent cheaper and grocery items are around five per cent less than what an average US resident pays.
However, utilities are quite expensive in the area (+6.4 per cent) due to its routinely high temperatures. The median household income is $49,142, while the unemployment rate is 5.2 per cent.
Kalamazoo, Michigan
Kalamazoo may be one of the cheapest areas to live in the U.S. However, nearly 26.8 per cent of residents live below the poverty line. In addition, Michigan has a reputation for being among the least tax-friendly states for middle-class families in the US.
With a population of 261,173, the cost of living is 17.2 per cent below the U.S. average. On a brighter note, Pfizer (PFE), the widely popular pharmaceutical company, maintains its largest manufacturing site in Kalamazoo. Also, Western Michigan University, with its multiple campuses and research facilities, is one of the major drivers of the city’s economy. The city’s unemployment rate is 3.8 per cent.
Florence, Alabama
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Florence has a population of 153,911 and an average cost of living of 16.9 per cent. The city is also known for its rich history in art and music. The popular rock band, The Rolling Stones, recorded the hit songs “Wild Horses” and “Brown Sugar” at the Muscle Shoals Sound Studio, located in the city.
Housing is about 36 per cent lower than what the average American pays, while healthcare costs about 15 per cent less. Meanwhile, the city’s unemployment rate is about 2.6 per cent.
Joplin, Missouri
Joplin has had an interesting bit of history over the years. First, it gained a reputation for being the place where Depression-era bank robbers, Bonnie and Clyde, hid for a time. Sadly, Joplin is now known for disastrous tornadoes, like the deadly storm that destroyed about 30 per cent of the city in 2011.
With a population of 184,080, the cost of living is 16.2 per cent below the U.S. average. One of the major contributors to the city’s economy is its two medical facilities which serve a four-state area that includes Kansas, Oklahoma and Arkansas.
Also, General Mills (GIS), Schaeffler Group (SFFLY) and Leggett & Platt (LEG) are other key employers in the area. Housing costs are about 41 per cent below the national average, and expenses for groceries and healthcare are comparatively low. However, expenses for utilities are very high, almost five per cent above the national average.
Lawton, Oklahoma
Photo credit: Sean Pavone/Getty Images
Lawton is a military town located in southwest Oklahoma. It is known for its Fort Sill, a weapon that was used as far back as World War II. With a population of 128,081 and an average cost of living of 16 per cent below the U.S. average, Lawton has an unwanted reputation of being one of 23 U.S. metro areas where almost one in every five people live below the poverty line.
The healthcare system is comparatively cheaper than the national average. However, there are 180 only physicians per 100,000 population in the Lawton Metro Area. Housing costs are 39 per cent below the national average and groceries are affordable too.
Lawton has attractions like the Museum of the Great Plains and Elmer Thomas Park where you can hang out with family and friends during the holidays.
Jonesboro, Arkansas
Photo credit: Arkansas Money & Politics
The city of Janesboro houses the metro area which consists of two counties, Craighead and Poinsett. It is located in northeast Arkansas and is a short 50-mile drive to Memphis, Tennessee.
Jonesboro also hosts Arkansas State University. With a population of 135,512 and a cost of living of 15.7 per cent below the U.S. average, the median household income is around $59,582.
There are plenty of local companies that offer employment to residents, like Frito-Lay, Unilever, and General Mills. Also, housing in Arkansas is one of the cheapest in the US, with property taxes among the lowest in the country. Transportation is cheap too, as the average commute is 20 per cent.
Unemployment is about 2.5 per cent, which means you can get a good job and enjoy an affordable lifestyle in the same location. Meanwhile, popular pastimes include bird watching and fishing.
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