Where $100 Only Costs $86 – The 10 Cheapest Cities To Live In America

McAllen, Texas, tops the list of America’s most affordable cities. Residents pay just $86.92 for goods and services that cost $100 nationally, according to data from the Bureau of Economic Analysis cited by Realtor.com.

The South and Midwest dominate the affordability rankings, with Texas claiming two spots among the 10 most budget-friendly metropolitan areas. According to John Macke, senior research analyst at John Burns Research and Consulting, housing costs were the primary driver behind the rankings.

“Looking at the BEA’s regional price parity data specifically, it’s the housing component that is much lower in these metros relative to others, making it the primary factor driving the lower cost of living,” Macke said to Realtor.

Don't Miss:

• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
• ‘Beating the market through ethical real estate investing' — this platform aims to give tenants equity in the homes they live in while scoring 17.38% average annual returns for investors – here’s how to join with just $100

McAllen’s affordability stems from several factors, including its trade-based economy and lack of state income tax. “McAllen’s location close to the Mexico border has fueled a trade-based economy and manufacturing jobs,” real estate agent Cara Ameer told Realtor. "There is plenty of land on which to develop, which helps keep prices more affordable.”

The city’s median home price of $275,000 reflects the affordability advantage. “Nationally, the home price-to-income ratio is around 5.5 as of August 2024, meaning home prices are 5.5 times the median household income,” Macke said. “In a city like McAllen, TX (4.8), home prices are much lower relative to incomes.”

Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.

Wichita, Kansas, ranks second with residents paying $89.16 per $100 of national average costs.

Little Rock, Arkansas, takes third place at $89.15 per $100, attracting residents from higher-cost states. “Arkansas has become quite popular with Californians, who can take advantage of affordability, a milder climate and an abundance of recreational opportunities,” Ameer says.

Other standout cities Realtor cited include:

• Toledo, Ohio ($90.18): The “Glass Capital of the World” offers particularly affordable transportation costs
• Scranton, Pennsylvania ($91.90): Features much lower property taxes than Philadelphia suburbs
• Dayton, Ohio ($91.39): Benefits from a diverse economy without tech-driven cost inflation
• Tulsa, Oklahoma ($90.53): Combines cultural amenities with Midwest affordability
• Akron, Ohio ($92.05): Offers attractive property tax abatement programs
• Birmingham, Alabama ($91.15): Provides access to major health care facilities
• El Paso, Texas ($91.21): Maintains affordability despite Texas’s growing popularity

See Also: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.

“The metros with the lowest cost of living are largely concentrated in the South and the Midwest,” Realtor.com senior economic research analyst Hannah Jones was quoted saying in the report. “These areas tend to be smaller, with only Birmingham, AL, representing the 50 largest U.S. metros.”

According to September data, housing costs in these more affordable markets typically run $100,000 or more below the national median. However, some cities, like El Paso, may lose their affordability advantage as mortgage rates moderate.

Read Next:

• A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?