Pandemic-related job losses, financial insecurity and a high cost of living in many cities make finding cheap places to live more important than ever. Even in this challenging economic climate, there are metro areas across the county where the cost of living has gone down.
The cost of living measures the prices of common purchases. This survey monitors housing expenses, utility bills and the cost of transportation costs, groceries and healthcare. It also tracks miscellaneous goods and services. This category includes personal care items, home goods and garden tools, services like haircuts, repairs and maintenance and other items and service that keep a household running.
A lower cost of living helps a renter find cheap places to lives, save money and pay down debt. That’s especially important now since the pandemic has turned life (and spending) upside down.
Cities where it’s now cheaper to live
The cities where it’s gotten cheaper to live span the country — including Alaska and Hawaii. Several state capitals made the list. California and Texas both show up twice. These communities range from small southern and Midwestern towns to the fourth-largest urban center in the country.
These cheap places to live are very different, but they all have one thing in common — residents saved money in nearly every single category recorded. That added up to a substantial decrease in the cost of living.
10. Juneau, AK
Alaska’s capital city sits on the Alaskan panhandle, with Canada to the east and the Gulf of Alaska to the west. Juneau borders one of the country’s largest wilderness areas and boasts 250 miles of hiking trails through meadows and mountains. Mendenhall Glacier is just 13 miles from downtown.
Easy access to nature doesn’t come cheap. The city is one of the most expensive cities in Alaska and the nation.
But residents got a break during the pandemic when the cost of living decreased by 4.44 percent. Transportation costs here dipped 11.34 percent. A 7.16 percent drop in housing costs made Alaska’s most competitive housing market more affordable.
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9. Stockton, CA
The multi-cultural waterfront city of Stockton attracts craftspeople, artists, chefs, and entrepreneurs. The sunny Central Valley is home to vineyards and boutique wineries. It supplies grapes for about half of California’s total wine production.
Two major freeways, an inland port and rail service whisk people and goods throughout the state. Many companies have distribution centers in Stockton. The county is a national leader in transportation and logistics jobs.
The cost of living in Stockton dropped 4.51 percent during the pandemic. Being close to major distribution centers benefitted residents. Transportation costs dropped 7.88 and the cost of groceries plummeted by 20.05 percent — the largest decrease in the survey.
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8. Texarkana, TX-AR
These twin cities straddle the border between eastern Texas and southwestern Arkansas. The state line even runs through the post office.
Defense jobs and a nearby coal-fired power station workers from a 60-mile radius. The city is also a regional retail, medical and educational hub. Historic homes, restaurants, shopping, and an antique car museum contribute to the small city vibe.
Texarkana inched up on the list of the cheapest places to live during the pandemic when the cost of living decreased by 4.62 percent. Housing costs barely budged (down 0.74 percent), but the cost of goods and services plunged 10.84 percent. All other categories decreased between 2.24 and 3.73 percent.
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7. Minot, ND
The pandemic hit the region’s oil industry hard. But the unemployment rate remains low — around 2 percent. A university, Air Force base and rural hiking and birdwatching spaces attract new residents.
“People who move here want that slower pace. You can get to every place in town within 15 minutes,” explains Stephanie Schoenrock, Visit Minot Executive Director. “And they really love the great outdoors. North Dakota is a beautiful state if you love prairie sunsets and rolling hills.”
The cost of living in Minot decreased by 4.66 percent, fueled by a 9.25 percent drop in housing prices. Residents saved 6.94 percent on goods and services and 5.83 percent on utilities.
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6. Dallas, TX
Dallas is the cultural and economic hub of North Texas. The Dallas Museum of Art, The Crow Collection of Asian Art and the Nasher Sculpture Center showcase thousands of years of art and culture from around the world. International business is big here, too: Some 22 Fortune 500 companies and 23 Fortune 1,000 companies call the Dallas metro home.
This diverse, multi-cultural city is the heart of the fourth largest metro area in the U.S., but it just got cheaper to live here. The cost of living dropped 4.74 percent, thanks to a 10.12 percent decrease in housing costs and a 9.02 percent drop in transportation costs.
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5. Middlesex-Monmouth, NJ
Monmouth County is the northernmost county along the Jersey Shore. The pandemic hit the tourism industry hard, both here and across the country, so locals had the sandy beaches and Atlantic views to themselves.
Middlesex and Monmouth Beach are small boroughs. New Jersey is the most densely populated state in the union, with 1,207.83 people living on every square mile (The U.S. average is 93 people per square mile).
The lack of tourists corresponded with savings for residents. The cost of living dropped 5.05 percent, led by a 13.37 percent drop in housing costs. The cost of healthcare and utilities plummeted too, decreasing 10.56 and 7.24 percent.
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4. Honolulu, HI
The island capital of Honolulu perches on the south shore of Oahu. The city’s beaches are iconic. The dining, shopping and nightlife crackle with energy. Travelers flock to the Waikiki neighborhood, the USS Arizona Memorial and nearby Diamond Head — although tourism decreased during the pandemic.
Not only did Honolulu residents enjoy one of the most scenic quarantine spots in the nation, but they also saw a 5.06 decrease in the cost of living. It was only four communities surveyed to see a double-digit decrease in utility bills (down 15.15 percent). Residents also saved 6.73 percent on grocery bills and 6.31 percent on housing costs.
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3. Bakersfield, CA
Bakersfield, population 377,917, sits along the Kern River at the foot of the Sierra Nevada mountains. The majestic trees of Sequoia National Forest are just a short drive away.
It’s the county seat of Kern County, which is an agricultural powerhouse. Farmers specialize in vegetables, grapes, almonds, milk and pistachios. Kern County also leads the state in petroleum extraction and refining.
The cost of living in Bakersfield dipped 5.19 percent between the start of the pandemic and early 2021. Residents saw the biggest decrease in miscellaneous goods and services (7.51 percent). Big-ticket items like healthcare and housing costs dropped 5.87 percent and 4.42 percent, respectively.
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2. Hartford, CT
The Connecticut state capital and its suburbs hug the banks of the Connecticut River. Top employers include insurance and financial intuitions, as well as aerospace and defense companies.
Hartford values its rich artistic heritage. The Harriet Beecher Stowe Center and Mark Twain House honor the great American writers and former Hartford residents. The Wadsworth Atheneum Museum of Art features works by Renaissance and Impressionist masters.
The cost of living in Hartford decreased by 5.70 percent during the last year. Residents saved the most on transportation costs, which went down 11.92 percent. The cost of groceries decreased by 6.23 percent and miscellaneous goods and services dropped by 6.56 percent.
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1. Huntsville, AL
Nicknamed Rocket City, this northern Alabama enclave is the new U.S. Space Command headquarters. The progressive, creative community has been a leader in space technology since the 1950s and attracts other future-focused businesses.
“We have many opportunities for people who are seeking work in a number of different areas, including aerospace, engineering, manufacturing, cyber and IT, and creative fields,” says Lucia Cape, Huntsville/Madison County Chamber Senior Vice President of Economic Development, Industry Relations and Workforce, “Based on data from the City of Huntsville, multifamily construction in the Huntsville metro has increased from 539 units in 2017 to 2,788 units in 2020, showing the market is responding quickly to demand.”
The cost of living in Huntsville decreased by 6.39 percent, led by a 14.19 percent drop in healthcare costs. The cost of transportation dipped 8.97 percent, while the cost of goods and services decreased by 9.26 percent.
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Top 50 markets where the cost of living decreased the most
The top 50 cheap places to live shows are just as geographically diverse as the top 10.
Many major metropolitan areas made the list, including Seattle, Washington D.C., and Baltimore. Smaller cities like South Bend, IN, Cleveland, TN and Hutchinson, KS made the list too. It got cheaper to live in the New England enclaves like New Haven, CT in the east and rugged Casper, WY in the west.
Brooklyn (No. 30) and San Francisco (No. 27) have traditionally been two of the most expensive cities in the country. But it actually becomes more affordable to live in both cities during the pandemic.
Here’s a look at the 50 urban areas where cost of living has decreased the most. And, if you’re curious, you can also check out the places where it’s getting more expensive to live.
| Rank | Urban Area | Overall Change | Grocery Change | Housing Change | Utilities Change | Transportation Change | Healthcare Change | Misc. Goods and Services Change |
|---|---|---|---|---|---|---|---|---|
| 1 | Huntsville AL | -6.39% | 3.80% | -5.82% | -2.19% | -8.97% | -14.19% | -9.26% |
| 2 | Hartford CT | -5.70% | -6.23% | -5.69% | 0.71% | -11.92% | 4.23% | -6.56% |
| 3 | Bakersfield CA | -5.19% | -2.56% | -4.42% | -3.80% | -1.09% | -5.87% | -7.51% |
| 4 | Honolulu HI | -5.06% | -6.73% | -6.31% | -15.15% | -3.75% | -5.39% | 1.28% |
| 5 | Middlesex-Monmouth NJ | -5.05% | 1.85% | -13.37% | 7.24% | 2.46% | -10.56% | -3.09% |
| 6 | Dallas TX | -4.74% | -3.65% | -10.12% | 2.33% | -9.02% | 2.35% | -2.73% |
| 7 | Minot ND | -4.66% | -2.88% | -9.25% | 5.83% | 3.76% | -1.65% | -6.94% |
| 8 | Texarkana TX-AR | -4.62% | -2.39% | 0.74% | -2.82% | 3.73% | -2.24% | -10.84% |
| 9 | Stockton CA | -4.51% | -20.05% | -5.34% | 0.96% | 7.88% | -3.07% | -2.00% |
| 10 | Juneau AK | -4.44% | 1.01% | -7.16% | 0.37% | -11.34% | 1.31% | -5.43% |
| 11 | Midland TX | -4.35% | 2.61% | -16.79% | -3.61% | -3.15% | 8.76% | -0.19% |
| 12 | Mobile AL | -4.19% | -1.77% | -8.88% | -0.69% | 7.43% | -2.33% | -6.11% |
| 13 | Arlington VA | -4.19% | -10.52% | -6.70% | -3.72% | -16.76% | 3.82% | 4.17% |
| 14 | Dublin-Laurens County GA | -4.13% | -0.73% | -8.26% | -1.93% | 0.98% | 4.61% | -5.68% |
| 15 | Bergen-Passaic NJ | -4.11% | 1.09% | -11.04% | 1.15% | 2.68% | -8.04% | -0.63% |
| 16 | South Bend IN | -4.09% | -4.50% | 2.43% | 2.27% | -7.14% | -1.96% | -9.28% |
| 17 | Kankakee IL | -4.02% | -4.20% | -3.63% | -0.34% | -5.79% | -3.44% | -4.42% |
| 18 | Kokomo IN | -3.97% | 3.75% | -7.82% | 2.36% | -5.28% | 0.30% | -6.54% |
| 19 | Jackson-Madison County TN | -3.79% | -3.71% | -2.33% | 1.46% | -4.83% | -2.40% | -5.52% |
| 20 | Washington DC | -3.73% | -2.84% | -7.58% | -7.22% | -2.31% | -1.72% | 2.43% |
| 21 | Yuma AZ | -3.68% | 4.97% | -3.88% | -1.19% | -13.28% | -5.45% | -4.79% |
| 22 | Thomasville-Lexington NC | -3.67% | -5.80% | -0.44% | -2.48% | -5.21% | 2.11% | -5.65% |
| 23 | Shreveport-Bossier City LA | -3.59% | 0.30% | -4.02% | -1.25% | -8.81% | -7.81% | -3.67% |
| 24 | Reno-Sparks NV | -3.55% | -4.13% | 6.44% | -5.40% | -11.58% | -10.35% | -8.49% |
| 25 | Montgomery AL | -3.52% | 3.24% | -7.20% | -0.80% | 1.40% | 0.84% | -5.86% |
| 26 | Morristown NJ | -3.51% | -0.26% | -7.97% | 0.54% | -6.87% | -1.01% | -0.29% |
| 27 | San Francisco CA | -3.44% | -1.73% | -3.66% | -1.51% | 1.90% | -1.45% | -7.30% |
| 28 | Ponca City OK | -3.41% | -2.86% | 1.91% | 0.00% | -4.49% | -3.54% | -7.20% |
| 29 | Waco TX | -3.29% | -0.13% | -12.30% | 3.32% | -2.72% | -7.14% | 0.30% |
| 30 | New York (Brooklyn) NY | -3.27% | -6.65% | -6.08% | 0.19% | 2.61% | -1.42% | 0.25% |
| 31 | Kingsport TN | -3.19% | -7.36% | -12.42% | 4.82% | 16.14% | -0.44% | -0.72% |
| 32 | Wenatchee WA | -3.14% | -2.75% | -9.06% | -1.13% | -13.69% | 1.72% | 3.40% |
| 33 | Seattle WA | -3.13% | 1.55% | -8.52% | -0.91% | 1.15% | -4.58% | 0.55% |
| 34 | Alexandria VA | -3.07% | -11.04% | -4.00% | -3.72% | -16.23% | 1.48% | 4.04% |
| 35 | Cedar Park TX | -3.06% | 3.80% | -0.30% | 2.15% | -1.83% | 2.89% | -10.06% |
| 36 | Odessa TX | -3.02% | 2.46% | -14.65% | 2.54% | 3.37% | -4.09% | 1.61% |
| 37 | Evansville IN | -3.02% | 2.05% | -4.67% | -1.71% | -0.61% | -0.54% | -4.94% |
| 38 | New Haven CT | -2.99% | -8.36% | 3.24% | -6.74% | 5.24% | 2.98% | -7.24% |
| 39 | Waterloo-Cedar Falls IA | -2.95% | 0.94% | 2.38% | 2.09% | -10.83% | 1.79% | -7.85% |
| 40 | Baltimore MD | -2.90% | -6.97% | -8.48% | 0.76% | 12.09% | -2.64% | -0.19% |
| 41 | Casper WY | -2.84% | -1.43% | -11.39% | -2.02% | 14.96% | 0.30% | -1.86% |
| 42 | Valdosta GA | -2.81% | -11.39% | -1.91% | -2.80% | 6.20% | -0.49% | -2.23% |
| 43 | Bethesda-Gaithersburg-Frederick MD | -2.75% | -7.22% | -2.92% | -10.26% | 4.97% | -2.51% | -1.23% |
| 44 | Mason City IA | -2.70% | -1.74% | 3.79% | -3.78% | -6.67% | 1.53% | -5.34% |
| 45 | Kalamazoo MI | -2.68% | 4.42% | -1.37% | -2.30% | -4.50% | 4.37% | -5.56% |
| 46 | Greenville SC | -2.46% | -2.92% | -7.28% | -1.80% | -5.41% | 1.75% | 1.00% |
| 47 | Cleveland TN | -2.40% | -4.54% | 10.52% | 0.11% | -3.95% | -5.57% | -9.66% |
| 48 | Hutchinson KS | -2.39% | 3.61% | 5.22% | -0.10% | -3.53% | 7.42% | -8.90% |
| 49 | Sacramento CA | -2.35% | -16.12% | 0.29% | 1.01% | 2.72% | -3.85% | -1.31% |
| 50 | St. Paul MN | -2.34% | -0.87% | -6.03% | -0.84% | 3.75% | -3.53% | -1.50% |
How the pandemic impacted the cost of living
“During the pandemic, people are consuming a lot more food, particularly at home, and a lot less transportation and recreation goods,” Harvard University economist Alberto Cavallo told National Public Radio in September 2020. The U.S. Department of Agriculture forecast that grocery bills will increase by as much as 2 percent in 2021.
Americans shifted their recreation time (and budget) to at-home experiences. Remote work, online learning, socializing virtually and consuming media at home caused the average U.S. household to consume 10 percent more electricity.
Consumer Reports notes that the cost of cable and internet bills increased during the pandemic. The price of streaming subscription services did, too. Spending more time at home meant bigger water bills and higher heating and cooling costs for many residents.
Not everyone can pay; The National Energy Assistance Directors Association estimated that past due electric bills soared from $11 billion in 2019 to over $27 billion in the spring of 2021. An Arcadia Survey states that as many as 37 million Americans — nearly one-third of all households are facing overdue power bills.
Housing costs during the pandemic
All that time spent at home sent home prices soaring. In late December 2020, the Federal Housing Finance Agency (FHFA) announced that house prices rose 10.2 percent in the 12 months leading up to October 2020.
Housing supply remains very low, forcing more people to rent. Rental prices in most major U.S. cities dipped as remote workers left urban centers for more space and more affordable prices.
But essential workers who couldn’t work from home and people who couldn’t afford to move had fewer options. The lack of affordable housing (a problem that predated the pandemic) meant that rents for low-income and middle classes workers often stayed steady or increased during the pandemic.
Methodology
Cost of living information comes from The Council for Community and Economic Research (C2ER).
To find the markets where the cost of living has decreased the most, we looked at more than 250 metro areas as identified by C2ER and calculated the percentage of decline from the composite or overall cost of living index in Q1 2021 compared to Q1 2020. The areas with the largest decrease in cost of living are the ones with the greatest percentage of change.
We also calculated the growth or decline for groceries, housing, utilities, transportation, healthcare and goods and services to provide additional context.
The cheap places to live information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
