Big cities offer more employment
opportunities, more things to do and more people to meet than smaller
towns. But they also have drawbacks, from congestion and crime to high
costs. That's why a big city with a small price tag is uniquely
appealing, offering urban perks without urban expenses.
We identified
the 10 U.S. cities with populations above 250,000 that have the lowest
living costs. Cheap living alone doesn't guarantee a good place to live;
we also list household incomes, home values and unemployment rates for
each of these cities, so you can focus on the economic factors that are
most important to you. In all cases, home values are below the national
average, and in most cases jobless rates are better than average.
Household incomes in these cities fall below the national average, but
in many cases paychecks are solid relative to living costs. Because
big-city traffic can impact your quality of life, we even list the
average commute times for workers.
Take
a look at our 2014 list of the most affordable big cities in America,
and decide if one of these cheap places to live makes sense for you.
10. Louisville, Ky.
Scott Oves via Wikimedia Commons
City population: 609,893
Median household income: $44,111 (U.S.: $53,046)
Median home value: $139,400 (U.S.: $181,400)
Unemployment rate: 6.4% (U.S.: 6.1% in August 2014)
Average commute to work: 22.2 minutes (U.S.:25.4 minutes)
Louisville
isn't the capital of Kentucky--tiny Frankfort is--but it is the state's
largest and arguably most important city, much to the chagrin of
Lexington. Louisville is home to three Fortune 500 companies: Humana,
Yum Brands (owner of KFC, naturally) and Kindred Healthcare. Lexington?
Zero. As for college basketball, a near-religion in Kentucky, the
University of Louisville won the NCAA men's title as recently as 2013.
(The University of Kentucky, in Lexington, lost in the 2014 final and
last won in 2012.) And despite Lexington's label as "Horse Capital of
the World," it is Louisville's Churchill Downs that plays host to the
annual Kentucky Derby.
It's
not all coming up roses for Louisville. The city has an above-average
unemployment rate and the third-longest average commute on this list.
And despite lower-than-average living expenses, 87 other cities
including the next nine cities on our list are cheaper to live in than
Louisville, according to the Council for Community and Economic
Research's Cost of Living Index. (The remainder of those cities didn't
make this list because their populations are too small.)
9. Oklahoma City
Cost of living: 9.7% below U.S. averageCity population: 610,613
Median household income: $45,704
Median home value: $131,000
Unemployment rate: 4.4%
Average commute to work: 20.2 minutes
There's
something about capital cities when it comes to affordable living and
economic stability. Jobs tend to be reliable because the state
government needs to function no matter how well the economy is doing;
there's often a large university nearby that provides employment
opportunities, services and inexpensive things to do; and big businesses
set up shop to take advantage of an educated workforce and proximity to
the capitol. Four of the 10 cities to make our list of affordable big
cities are state capitals.
Oklahoma
City is no exception. Oklahoma State University has a campus in town,
and the University of Oklahoma is located just south of the city limits
in Norman (although many facilities are in Oklahoma City proper).
Chesapeake Energy and Devon Energy, both Fortune 500 companies, are
based in Oklahoma City. When the city government recently surveyed
residents, 84% called Oklahoma City a good place to live (10 percentage
points better than the average large U.S. city) and 78% called it a good
place to work (5 percentage points better than average).
On the downside, Oklahoma, which is part of the infamous Tornado Alley, is number six on our list of States Most at Risk of Disaster, based on estimated property damage since 2006.
Cost of living: 10.3% below U.S. average
City population: 268,738
Median household income: $49,504
Median home value: $142,200
Unemployment rate: 2.9%
Average commute to work: 17.6 minutes
The
smallest big city to make our top 10, Lincoln boasts the highest median
household income on this list. Paychecks are helped by the fact that
the local jobless rate is below 3%, so employers are competing to fill
openings. That Lincoln is the capital of Nebraska helps, too. Making
Lincoln even more appealing to workers, the typical commute is 31%
shorter than that of the average U.S. city.
Underscoring Lincoln's affordability, we recently named it one of the 10 Cheapest Cities You Will Want to Live In--meaning
it's not only inexpensive but there's fun stuff to do, too. After work,
check out the new Railyard entertainment district, home to restaurants,
bars, live performance spaces and an ice rink in winter.
Cost of living: 10.3% below U.S. average
City population: 308,428
Median household income: $48,779
Median home value: $163,000
Unemployment rate: 5.3%
Average commute to work: 19.6 minutes
Horses
aren't cheap in Lexington, but many other things are. According to the
Cost of Living Index, groceries run nearly 14% below the national
average, and housing-related costs come in almost 24% below average (see
mortgage rates in this area). Not bad considering Lexington is the second-biggest city in the Bluegrass State after Louisville.
In
contrast to the low living expenses, salaries are relatively strong.
Lexington's median household income of nearly $49,000 a year is the
second-highest on this list. The biggest employers in Fayette County,
which encompasses Lexington, include the University of Kentucky and
Lexmark International.
9 Tiny Homes You’ll Love Big Time6. San Antonio
Cost of living: 11.2% below U.S. average
City population: 1.41 million
Median household income: $44,937
Median home value: $113,100
Unemployment rate: 5.0%
Average commute to work: 23.4 minutes
Forget
the Alamo. San Antonio's true claim to fame just might be its right to
call itself "America's Biggest Cheap City." Often overshadowed, San
Antonio actually has a bigger population than Dallas or Austin-yet its
living costs are much lower than either of its better-known Texas
neighbors. It also has more than half a million more people than the
second-largest city on this list, Columbus, Ohio. Nearly two-thirds of
San Antonio's residents are Hispanic, giving the city a multicultural
vibe.
Speaking of the Alamo,
entry to the downtown landmark is free, fitting for such an affordable
place to live. There's also no charge to stroll the nearby River Walk. A
margarita can be found for just $3 during happy hour at one of the bars
lining the water.
See More: 10 Markets Where Home Prices Have Fallen Most5. Tulsa
Cost of living: 11.7% below U.S. average
City population: 398,121
Median household income: $40,781
Median home value: $121,700
Unemployment rate: 4.5%
Average commute to work: 18.3 minutes
City population: 398,121
Median household income: $40,781
Median home value: $121,700
Unemployment rate: 4.5%
Average commute to work: 18.3 minutes
This
Oklahoma city traces its roots back to the Western expansion, first as a
cattle town and later as the "Oil Capital of the World." Reminders can
be found everywhere. The Gilcrease Museum, which specializes in exhibits
about the American West, offers free admission on the first Tuesday and
third Sunday of each month. Another must-see is the 1920s villa that is
home to the Philbrook Museum of Art. Construction of the opulent
Italian renaissance building was financed by the oil boom. There's no
charge to visit on the second Saturday of each month.
Another
plus: The average apartment runs just $604 a month, about one-third
less than the national average. It's no wonder Tulsa ranked high on our
list of Affordable Big Cities for Renters.
4. Nashville
Cost of living: 12.4% below U.S. averageCity population: 634,434
Median household Income: $45,982
Median home value: $165,000
Unemployment rate: 6.2%
Average commute to work: 23.2 minutes
Nashville
is known as "Music City" for good reason. Not only is it the heart of
today's country music scene, but it preserves the history of the musical
genre in places such as the Country Music Hall of Fame, the Johnny Cash
Museum and the Grand Ole Opry. Shows at the Grand Ole Opry can be
expensive, but at smaller venues such as the Bluebird Café you can
usually pay a small cover charge to see a mix of up-and-comers and
established names perform.
Travel
& Leisure magazine named the Tennessee capital one of America's
favorite cities. Visitors tout its live music scene and barbeque;
residents give Nashville high marks for its friendliness and
affordability. Both groups, however, knock its lack of ethnic food.
Cost of living: 12.8% below U.S. average
City population: 434,353
Median household income: $46,978
Median home value: $132,900
Unemployment rate: 3.9%
Average commute to work: 18.0 minutes
The
second Nebraska city to make our top 10, Omaha has a lot in common with
Lincoln: low unemployment, low living costs and high incomes relative
to those costs. But while Lincoln can boast that it's home to the
governor, Omaha can boast that it's home to Warren Buffett. The
billionaire chief of Berkshire Hathaway, famous for his frugality, has lived in the same Omaha house since 1958.
Considering it's our Best City for Cheapskates,
rest assured that you don't need to be a billionaire to enjoy
activities around town. According to Tripadvisor, the most popular
attractions in Omaha are the Henry Doorly Zoo (discounted admission from
early November through early March) and TD Ameritrade Park ($11.50
general admission for the College World Series in June). Omaha also has
nearly three times as many public libraries and museums as the average
U.S. city. Many host free (or nearly free) events.
2. Columbus, Ohio
Cost of living: 12.8% below U.S. averageCity population: 822,553
Median household Income: $43,992
Median home value: $134,900
Unemployment rate: 4.4%
Average commute to work: 21.2 minutes
Despite
being home to the state capitol as well as multiple Fortune 500
corporations, Columbus has a small-town feel to go along with its
small-town living costs. Locals live and die by the fate of their
beloved Ohio State University football team. Scouting reports dominate
water-cooler talk, and streets become deserted as kickoff approaches.
But you'll pay a steep price for a seat in the stadium on game day.
Buckeyes sports fans trying to stretch their dollars opt instead to
watch football on TV and buy tickets to many other Ohio State sporting
events--think volleyball, gymnastics and the like--for just $8 a piece.
Your buck doesn't stop there. As one of Kiplinger's 10 Best Cities for Cheapskates,
Columbus offers many low-cost activities beyond the OSU campus. The
renowned Columbus Zoo charges seniors and residents half-price admission
on selected days. The Ohio State Fair, which attracts more than 900,000
visitors every summer for pig races, fireworks, foods on a stick and
more, charged $6 for advance-purchase tickets in 2014.
1. Memphis
Cost of living: 14.6% below U.S. average
City population: 653,450
Median household income: $36,817
Median home value: $98,300
Unemployment rate: 9.9%
Average commute to work: 21.5 minutes
When we compiled our annual list of the Cheapest Places to Live in America,
Memphis was by far the largest city to make the cut. In fact, five of
the top 10 cities on that list have populations below 100,000, and the
second-largest city on the list, Augusta, Ga., has fewer than 200,000
residents. But bigger isn't always better. The unemployment rate for
this Tennessee city is nearly 10%, despite the presence of three Fortune
500 companies. The poverty rate is 26.2%, significantly higher than the
nation's 14.9% average.
One saving grace for Memphis is the super-low cost of housing. The median home value is 46% below the national median (see mortgage rates
in this area), and the average apartment rent of $709 per month is 21%
below the U.S. average. Use the money you save to enjoy a Grizzlies pro
basketball game (tickets start at $10) followed by a heaping platter of
the city's signature ribs.
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