10 US cities with the lowest cost of living, where things from buying a home to a grocery run are relatively affordable

• Realtor.com identified the top 10 places in the US with the lowest cost of living.

• The ranking considered how much residents pay for homes as well as expenses like food and gas.

• Small cities in the South and Midwest dominate the list, with a Texas city taking the top spot.

While inflation in the United States is gradually easing, many people have yet to tangibly feel much relief.

Since inflation reached a 40-year high in 2022, prices for everyday expenses in the US — including gas, food, entertainment, and housing — have increased significantly. Although prices are beginning to moderate, many American households still find themselves struggling with debt, living from paycheck to paycheck, or severely cost-burdened, meaning they spend over 30% of their income on housing.

While the cost of living varies widely from state to state and city to city, several spots across the US can offer residents a comfortable standard of living with prices that don’t break the bank.

To determine the US cities with the lowest cost of living, the economic research team at Realtor.com analyzed the latest regional price parity data from the Bureau of Economic Analysis on the costs of various items, including food, housing, medical care, transportation, and other goods and services,

The research team found that the US cities with the lowest cost of living are primarily smaller spots in the South and Midwest — with two in Texas and three in Ohio — reinforcing these regions’ existing reputation as affordable places to live.

While lower prices for necessities such as food, clothing, and utilities play a key role in affordability, a key factor is the substantially lower home prices in these smaller towns.

“Home prices in these areas were $100,000 or more below the national median in September,” Hannah Jones, senior economic research analyst at Realtor.com, said in the report. The US median list home price decreased by 1% year over year to $425,000 in September, the company said.

Below are the 10 US cities with the lowest cost of living.

10. El Paso, Texas

• What residents pay for $100 of necessities: $91.21

• Median home price: $298,125

9. Birmingham, Alabama

• What residents pay for $100 of necessities: $91.15

• Median home price: $300,000

8. Akron, Ohio

• What residents pay for $100 of necessities: $92.05

• Median home price: $230,000

7. Tulsa, Oklahoma

• What residents pay for $100 of necessities: $90.53

• Median home price: $325,000

6. Dayton, Ohio

• What residents pay for $100 of necessities: $91.39

• Median home price: $250,000

5. Scranton, Pennsylvania

• What residents pay for $100 of necessities: $91.90

• Median home price: $243,450

4. Toledo, Ohio

• What residents pay for $100 of necessities: $90.18

• Median home price: $237,450

3. Little Rock, Arkansas

• What residents pay for $100 of necessities: $89.15

• Median home price: $291,000

2. Wichita, Kansas

• What residents pay for $100 of necessities: $89.16

• Median home price: $292,700

1. McAllen, Texas

• What residents pay for $100 of necessities: $86.92

• Median home price: $275,000

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