Carey Chesney8-Minute Read
UPDATED: May 30, 2023
For many Americans, keeping a keen eye toward their cost of living is an integral part of daily life. With inflation being a very real concern and mortgage interest rates that aren’t quite as appealing as they have been in recent memory, frugal home shopping is top of mind for a lot of people.
As a result, many home shoppers are asking where to find the most affordable cities in America, and we’re here to help provide answers. Our analysis of this question was geared toward setting you up for success when it comes to your cost-conscious home search and includes information on:
Okay, let’s dive into which places in the United States will put the least strain on your budget if you decide to call them home.
Nestled on the Arkansas River, Muskogee, Oklahoma is home to Bacone College as well as the Oklahoma School for the Blind. In addition to these institutions of higher education, Muskogee offers visitors and residents the Five Civilized Tribes Museum. This museum honors the five tribes that had their headquarters in Muskogee when it was founded in 1872. If you like education and history, Muskogee might not be a bad place to call home.
Considering calling Muskogee home? Check out homes for sale in Muskogee and Muskogee housing market trends.
NMLS #3030
If you find yourself southwest of Cleveland and northeast of Columbus and about halfway in between the two, you might be in Ashland, Ohio. Residents enjoy plentiful shopping options including both local and national retailers as well as a number of charming restaurants and parks. In addition, The Ashland Symphony Orchestra has been entertaining residents and tourists alike for more than 50 years.
Considering calling Ashland home? check out homes for sale in Ashland and Ashland housing market trends.
Located near major metropolitan cities but featuring a small-town feel, Ponca City, Oklahoma, has a lot to offer prospective home buyers on a budget. Lake Ponca offers boating, swimming, sunbathing and other outdoor activities for the whole family to enjoy. Other attractions include the Ponca City Art Center, the Poncan Theatre, and the Lew Wentz Golf Course.
Considering calling Ponca City home? Check out homes for sale in Ponca City and Ponca City housing market trends.
Best known for the NASCAR-sanctioned Martinsville Speedway, this Virginian town offers a ton of outdoor features like the Lauren Mountain Preserve and the Rock Ridge Trail. In addition, a vineyard and local brewery highlight the many shopping and dining options for residents and tourists in Martinsville.
Considering calling Martinsville home? Check out homes for sale in Martinsville and Martinsville housing market trends.
Located on picturesque Lake Decatur, this affordable Illinois city is growing fast. A robust educational system at all levels of learning as well as a bevy of outdoor locales make Decatur a great place to live at any stage of life.
Considering calling Decatur home? Check out homes for sale in Decatur and Decatur housing market trends.
East of Nashville west of Knoxville sits a charming little city called Cookeville, Tennessee. With a welcoming downtown and beautiful natural resources like woods and waterfalls, you’ll find yourself at home in this affordable mid-state locale.
Considering calling Cookeville home? Check out homes for sale in Cookeville and Cookeville housing market trends.
For a town this small, Statesboro sure has a lot of activities to fill your time. With a waterpark, shops, restaurants, theaters and more, you’ll find plenty to do if you call Statesboro home. And with a low cost of living, you’ll have the spare cash you need for daily fun.
Considering calling Statesboro home? Check out homes for sale in Statesboro and Statesboro housing market trends.
Jackson is sometimes referred to as a “hub city” since it is located in the midpoint of West Tennessee and is equidistant between Nashville and Memphis. Jackson's claim to fame is that it’s considered the birthplace of rockabilly music, so it’s no surprise that the entertainment scene is pretty robust.
Considering calling Jackson home? Check out homes for sale in Jackson and Jackson housing market trends.
If you like immersing yourself in history, you are going to love living in Nacogdoches, Texas. As the oldest town in the state, Nacogdoches offers an array of historical attractions including tea at a Victorian mansion, antique shops, and trail hikes on Native American trade routes.
Considering calling Nacogdoches home? Check out homes for sale in Nacogdoches and Nacogdoches housing market trends.
With a history built on innovation, especially in the automotive arena, Kokomo, Indiana, is often referred to as “the city of firsts.” Today, it boasts unique attractions like “Geek Street” where you can find collectables, cards, cubes, records and other nerdy delights.
Considering calling Kokomo home? Check out homes for sale in Kokomo and Kokomo housing market trends.
NMLS #3030
There you have it, the top ten most affordable cities based on our methodology (more on that below). Still looking for more options? No problem. Here are three more places that are pretty cost effective and popular. They didn't make the list based on our methodology, but they might be worth a look when you are searching for your next abode.
Kalamazoo, Michigan, is a city that offers a little bit of everything for everyone. This includes nature trails, shopping, sports, and some of the best microbreweries in the country. In addition to all these great attractions and a low cost of living, your kids might not have to pay for college if they grow up in Kalamazoo! The Kalamazoo Promise, a local nonprofit organization, will cover 100% of the tuition to an in-state college or university for students who graduate from Kalamazoo public schools.
Considering calling Kalamazoo home? Check out homes for sale in Kalamazoo and Kalamazoo housing market trends.
If you like a place that’s affordable but bustling with plenty to do, then Buffalo, New York, might just be the place to call home. With professional sports franchises, Niagara Falls, a vibrant music scene, and much, much more, Buffalo is a city that never sleeps. At the same time, Buffalo won’t keep you awake worrying about how much money you spend to live there.
Considering calling Buffalo home? Check out homes for sale in Buffalo and Buffalo housing market trends.
Located on the south end of Lake Erie, the city of Erie, Pennsylvania, offers a picturesque setting that won't break the bank when it comes to affordability. Whether it’s a sailing regatta in the summer or cross-country skiing through miles of trails in the winter, Erie is known for being a great setting for an active, fun, outdoor lifestyle.
Considering calling Erie home? Check out homes for sale in Erie and Erie housing market trends.
It’s important to keep in mind that affordability is just one factor to consider when deciding where to live. If price was the only factor, deciding where to hang your hat would be pretty simple, right? Of course, there are slew of other factors that go into deciding where to live. Here are a few that you might consider:
Finding your next place to live can be an exciting endeavor. There are many factors to consider, all specific to your unique wants, needs, and situation. If affordability is near the top of your list, hopefully the information provided here helped spark some ideas.
Ready to get moving? Apply for a mortgage online with the Home Loan Experts at Rocket Mortgage® today!
NMLS #3030
Rocket Homes collected and analyzed the most recent data on seven key local and countywide metrics to give us insight into the top most affordable metro areas. We analyzed the 300 metro areas across the US, which have Rocket Homes listings. The metrics used in this study include the violent crime rate, property crime rate, cost of living index, median rent, median yearly income, home appreciation, median home value, and Freddie Mac primary mortgage market survey interest rates. Some of these metrics were then used to calculate home affordability index. These metrics were chosen based on public data availability and topical relevancy. Metrics from the U.S. Census are based on 2021 ACS 5-year estimates.
The home affordability index was calculated using median home value for homes in that metro area, interest rate from Freddie Mac primary mortgage market survey, and median yearly income. To interpret the indices, a value equal to or greater than 1 means that the average person has enough income to qualify for a mortgage in that area. The calculation assumes a down payment of 20% of the home price and a qualifying ratio of 25%.
Each data category was normalized and transformed into a range of points for scoring and comparison. Cities with violent crime rates greater than or equal to 55 and property crime rates greater than or equal to 65 were removed from the ranking. Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall Most Affordable City Score for each city. The final scores are sorted to produce the final rankings.
Metric |
Weight |
Level |
Source |
Median home list price |
28% |
Metro |
U.S. Census |
Home value appreciation |
18% |
City |
Rocket HomesSM |
Cost of living index |
24% |
Metro |
Council for Community and Economic Research |
Median rent |
14% |
Metro |
U.S. Census |
Housing cost to income ratio |
20% |
Metro |
U.S. Census |
Home affordability index |
16% |
Metro |
National Association of REALTORS® and Freddie Mac |
Other metrics considered without weight:
Median yearly income |
|
Metro |
U.S. Census |
Violent crime rate |
|
City |
Best Places |
Property crime rate |
|
City |
Best Places |
Carey Chesney is a Realtor® and freelance writer that brings a wealth of experience as a former Marketing Executive in the fields of Health Care, Finance and Wellness. Carey received his Bachelor's in English at University of Wisconsin-Madison and his Masters in Integrated Marketing & Communications at Eastern Michigan University. You can connect with Carey at https://www.linkedin.com/in/careychesney/.
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