OK, so the South isn’t going to rival New York City or San Francisco anytime as one of the most expensive places to live. However, it is on the upswing, especially in certain cities.
Cost of living is the amount of money it takes in a certain place and time to cover basic human expenses, like housing, transportation, healthcare and so on. The last year or so has been pretty crazy, thanks in large part to the coronavirus pandemic. This undoubtedly affected some cost of living increases and decreases, especially related to healthcare and housing expenses.
10 areas with the greatest cost of living increases
Cost of living increases are standard and expected. What really makes this list stand out is the fact that eight of the 10 cities in the U.S. with the greatest upticks are in the South, which is generally a very affordable region.
Now that the word is out about the South’s good weather at a great price, more people are moving there. So, it only makes sense that the old supply and demand principles of economics come into play now.
10. Asheville, NC
Since 2020, the cost of living in Asheville has gone up 5.3 percent, putting it at 9.3 percent above the national average. This is not a surprise to anyone living there, as it is rapidly becoming one of the most popular places to live in North Carolina. Unfortunately, it’s also making it one of the more expensive places to live in N.C.
Located in the Blue Ridge Mountains in western North Carolina, Asheville is an eclectic mid-size city that’s known for being welcoming to all types. It boasts an adorable downtown, access to the world-famous Biltmore Estate and an insane foodie scene.
The two biggest areas of increase are housing, which is up by 7.14 percent, followed by healthcare (up 6.88 percent).
9. Fort Lauderdale, FL
A dramatic shift from the mountains of North Carolina, Fort Lauderdale is on the southeastern coast of sunny Florida. The overall cost of living in this high-demand area is 19 percent over the national average, up 5.31 percent from last year.
Interestingly, housing is only 0.6 percent higher than 2020, but groceries are 15.71 percent more expensive than in 2020. So rent won’t cost you much more, but steak and eggs will.
The high price of foodstuffs is worth it to many people, who love the beaches (24 miles worth) and general vibe of the Fort Lauderdale metro area, which includes Pompano Beach and Deerfield Beach. When it comes to shopping, Las Olas Boulevard is the place to see and be seen.
8. Eau Claire, WI
One of only two outlying cities on this list, Eau Claire, WI, is most definitely not located in the South. In fact, it’s about as far away as you can get.
Eau Claire’s overall cost of living currently rings in at 99.3 percent, which is 0.7 percent below the national average. However, it’s up 5.41 percent since 2020, so it’s likely to hit the even mark pretty soon.
Housing gets the credit for much of that bump, as having a place to live in Eau Claire is 12.76 percent more expensive than just a year ago. Groceries are also up more than 9 percent, but utilities and transportation have experienced dips, so that helps even it out somewhat.
This mid-sized city in west-central Wisconsin is a haven for independent-minded folks, so it naturally draws lots of artists and other free-thinkers. It’s also a hotbed of outdoor recreation, as the city is right where the Chippewa and Eau Claire Rivers meet, making water sports extremely popular.
7. Springfield, MO
At 7.2 percent under the national average, the cost of living in Springfield, MO, is already better than a lot of places. Nonetheless, it’s up 5.69 percent since last year, thanks in large part to a 10.03 percent hike in housing prices. Healthcare costs have also increased by more than 5 percent.
Situated in the southwestern corner of Missouri, Springfield made the Ozarks famous well before Jason Bateman did. Grab a paddleboard or kayak and float/fish your way through this picturesque countryside. Then stop by one of the area’s stunning lavender fields to pick your fill of the aromatic herb.
6. Wichita Falls, TX
In spitting distance of the Oklahoma state line is the city of Wichita Falls, TX. This north Texas city is up 5.99 percent in cost of living since last year, bringing it to only 8 percent below the national average. The most significant changes are a transportation cost increase of 9.49 percent and a grocery increase of 8.31 percent.
Mountain bikers especially love hitting the Wee-chi-tah Trail, but the Hotter’N Hell Hundred Race is another area favorite.
The city is also an artistic paradise, with museums, galleries and festivals all over the place. The Art Battle events are particularly fun, as they let the people get in on the action by voting on pieces created in real-time by local artists.
5. Bismarck, ND
The only other non-Southern city on our list is the capital city of North Dakota, Bismarck. Located in the south-central portion of the state, the cost of living in Bismarck is 2.3 percent higher than the national average, up 6.67 percent from last year.
Housing is the major reason for this shift, as it has increased more than 20 percent! That’s the biggest housing uptick on our entire list. More and more people are flocking to Bismarck, thanks to its long-standing reputation for great schools, good economy and quiet way of life.
Golfers especially love the selection of area courses, and walkers/runners/cyclers can’t get enough of the local trails. The Dakota Zoo and Fort Lincoln are other must-see nearby attractions.
4. Tucson, AZ
The “Old Pueblo” city itself is seeing some newcomers, and as a result, housing prices are up a whopping 18.6 percent since 2020. This is a major contributor to the city’s overall 7.52 percent increase in cost of living. As a result, Tucson is now 4.4 percent above the national average.
Known for almost exclusively sunshiny weather (350 days a year), the city of Tucson is home to the University of Arizona. Although the school is a major part of Tucson, there’s plenty of other stuff to enjoy, from sports to shopping and dining.
The landscape in Tucson is picture-perfect, as the cacti-filled Sonoran Desert will surround you virtually on all sides by mountain ranges.
Be sure to take the Sun Link Tucson Streetcar for a ride to enjoy everything downtown has to offer!
3. Orlando, FL
The cost of living in O-Town (plus its surrounding areas of Kissimmee and Sanford) is up 7.56 percent since this time last year, but the area is still almost two percentage points below the national average. Housing is the major culprit for this uptick, as it has seen an increase of more than 15 percent. Healthcare is also 14.3 percent higher than in 2020.
Although Orlando is obviously known for its dozen or so theme parks, the central Florida city has plenty of other stuff going for it. This beautiful city also has a number of natural springs, perfect for kayaking and otherwise floating along.
There are also a ton of sports teams to support, including the Orlando Magic NBA team and the Orlando City Soccer Club.
2. Abilene, TX
Let’s head back to the Lone Star State to close out the last two spots on this list. The Abilene area has seen a cost of living increase of 8.06 percent since 2020, yet it remains 6.2 percent below the national average. About 180 miles west of the Dallas/Fort Worth metro area, this city of more than 100,000 has obviously enjoyed the ripple effect of DFW sprawl in recent years.
Groceries have grown more expensive in Abilene over the past year, at 10.31 percent higher than in 2020. But the category of “miscellaneous goods and services” is responsible for much of the increase in the cost of living, up more than 15 percent. What that means is that the cost of a movie, haircut, clothes and the like is higher than it was a year ago.
Smack in the middle of Texas, Abilene has plenty for the family to enjoy, from Frontier Texas!, a 14,000 square-foot interactive museum to the Abilene Zoo and beyond. The city also has plenty of arts, entertainment and fine dining to enjoy.
1. San Antonio, TX
You generally don’t think of San Antonio as one of the most expensive places to live. After all, the Alamo City is still nearly 7 percent below the national cost of living average. However, it has experienced the biggest increase of any other city over the last year. Up 8.75 percent overall since 2020, the literal south Texas hot spot saw significant increases in groceries (9.8 percent), transportation (12.71 percent) and miscellaneous goods and services (19.35 percent).
Perhaps these upticks are because people are moving in droves to San Antone (and Texas, in general) because it boasts a strong economy, no state income tax, good schools and mild winters. The fact that it’s a modern, yet historically significant city doesn’t hurt San Antonio’s rep, either!
Top 50 markets where the cost of living increased the most
Wondering where else the cost of living is on the rise? Take a look at this chart, which details the top 50 markets experiencing this unfortunate increase.
| Rank | Urban Area | Overall Change | Grocery Change | Housing Change | Utilities Change | Transportation Change | Healthcare Change | Misc. Goods and Services Change |
|---|---|---|---|---|---|---|---|---|
| 1 | San Antonio-Seguin TX | 8.75% | 9.80% | -1.09% | -0.83% | 12.71% | -0.21% | 19.35% |
| 2 | Abilene TX | 8.06% | 10.31% | 5.59% | 0.45% | 2.11% | -1.60% | 15.15% |
| 3 | Orlando FL | 7.56% | 4.12% | 15.34% | -4.45% | 9.94% | 14.30% | 6.08% |
| 4 | Tucson AZ | 7.52% | 0.19% | 18.60% | 4.88% | 3.00% | 6.61% | 5.04% |
| 5 | Bismarck-Mandan ND | 6.67% | 3.32% | 20.28% | -1.53% | 2.39% | -1.78% | 2.96% |
| 6 | Wichita Falls TX | 5.99% | 8.31% | 4.95% | 1.18% | 9.49% | -4.80% | 8.40% |
| 7 | Springfield MO | 5.69% | 0.10% | 10.03% | -2.28% | 1.33% | 5.02% | 8.84% |
| 8 | Eau Claire WI | 5.41% | 9.36% | 12.76% | -3.68% | -1.67% | 3.30% | 4.69% |
| 9 | Fort Lauderdale FL | 5.31% | 15.71% | 0.60% | 0.69% | -7.74% | 4.92% | 11.35% |
| 10 | Asheville NC | 5.30% | 5.79% | 7.14% | -0.58% | -0.38% | 6.88% | 6.26% |
| 11 | Bloomington IN | 5.03% | 1.64% | 8.16% | 2.94% | -2.55% | 4.65% | 6.48% |
| 12 | Flagstaff AZ | 4.98% | 12.38% | 5.30% | -1.89% | 1.76% | -0.74% | 5.00% |
| 13 | Elkhart-Goshen IN | 4.86% | 3.32% | 0.27% | -0.72% | -1.56% | 1.12% | 12.28% |
| 14 | Memphis TN | 4.47% | 1.93% | 11.51% | -1.34% | -0.80% | 8.67% | 3.76% |
| 15 | Rio Rancho NM | 4.47% | 4.00% | 9.94% | -0.53% | 5.17% | 0.71% | 2.21% |
| 16 | Jacksonville FL | 4.28% | 17.84% | 1.62% | -0.81% | 10.72% | -3.35% | 1.51% |
| 17 | McAllen TX | 4.26% | 10.51% | 7.22% | 3.54% | -5.87% | 2.44% | 4.01% |
| 18 | Hampton Roads-SE Virginia VA | 4.18% | 2.87% | 1.24% | 3.20% | -4.69% | 4.95% | 9.68% |
| 19 | Columbia MO | 4.18% | -0.10% | 18.61% | 0.51% | 0.00% | -4.37% | 0.71% |
| 20 | Columbia SC | 4.14% | 2.84% | 3.71% | 2.81% | -5.40% | 2.30% | 8.79% |
| 21 | Ogden UT | 4.10% | -0.55% | 9.15% | 1.70% | 2.02% | 0.54% | 3.98% |
| 22 | Lima OH | 4.06% | 4.66% | 1.17% | 5.89% | -4.29% | 0.80% | 7.99% |
| 23 | Joplin MO | 3.86% | 0.33% | 17.72% | -1.91% | -2.72% | -3.29% | 3.16% |
| 24 | Prescott-Prescott Valley AZ | 3.84% | 2.27% | 8.19% | -1.99% | -13.71% | 3.09% | 6.44% |
| 25 | Colorado Springs CO | 3.79% | 2.79% | 8.12% | -0.10% | -6.68% | -2.29% | 5.12% |
| 26 | Mankato MN | 3.78% | -1.03% | 13.04% | -1.35% | 0.52% | 0.25% | 3.60% |
| 27 | Salisbury NC | 3.68% | 0.69% | 14.67% | -2.29% | 3.10% | -2.37% | 1.00% |
| 28 | Temple TX | 3.65% | -1.79% | 9.69% | 8.81% | -2.40% | -1.64% | 2.56% |
| 29 | Pittsfield MA | 3.62% | -3.05% | 17.09% | 4.77% | 4.09% | -7.10% | -3.21% |
| 30 | Spartanburg SC | 3.61% | 3.85% | 13.57% | -1.79% | 7.39% | 3.42% | -1.61% |
| 31 | Sioux City IA | 3.60% | 4.57% | 13.81% | -21.17% | 13.68% | 15.29% | 1.85% |
| 32 | Grand Junction CO | 3.43% | 4.86% | 8.87% | 4.59% | -8.45% | -5.89% | 3.14% |
| 33 | Denver CO | 3.24% | 0.74% | 1.11% | 4.79% | -1.50% | 3.70% | 6.82% |
| 34 | Westminster CO | 3.21% | 7.04% | -0.76% | -0.50% | 7.35% | 1.01% | 6.07% |
| 35 | Birmingham AL | 3.17% | 10.51% | 2.88% | -0.68% | -5.14% | 2.96% | 4.32% |
| 36 | Louisville KY | 3.10% | 3.90% | 4.01% | 8.12% | 11.78% | -10.76% | 1.15% |
| 37 | Detroit MI | 3.08% | 5.08% | 5.53% | 4.64% | -2.66% | 5.31% | 1.80% |
| 38 | Scranton PA | 3.06% | 9.08% | 9.60% | -1.12% | -0.53% | -4.93% | 0.19% |
| 39 | Tampa FL | 2.99% | 4.11% | 5.53% | -2.00% | 9.65% | 1.45% | 0.93% |
| 40 | Winston-Salem NC | 2.92% | -3.13% | 26.64% | -2.55% | -1.83% | -5.10% | -4.22% |
| 41 | Fayetteville AR | 2.77% | 15.54% | -0.97% | -5.54% | 13.99% | 1.82% | 0.35% |
| 42 | Atlanta GA | 2.70% | -3.59% | 12.06% | -0.59% | -3.39% | 1.26% | 0.67% |
| 43 | Conway AR | 2.65% | -0.57% | 2.22% | -0.92% | -0.54% | 5.10% | 5.83% |
| 44 | Conroe TX | 2.64% | 6.30% | -3.48% | 1.80% | 3.64% | 1.40% | 5.64% |
| 45 | Tulsa OK | 2.61% | 1.49% | 4.43% | 1.72% | 0.11% | 14.86% | 1.69% |
| 46 | Enid OK | 2.60% | 4.21% | 9.36% | 0.61% | -6.56% | 1.51% | 0.97% |
| 47 | Anderson SC | 2.58% | 7.83% | 1.86% | -1.92% | 6.43% | 6.40% | 0.81% |
| 48 | Ardmore OK | 2.57% | 8.22% | 4.31% | 0.10% | 2.29% | 0.58% | 0.99% |
| 49 | Dare County NC | 2.56% | -0.81% | 9.58% | -1.81% | 6.42% | 0.37% | -0.28% |
| 50 | Jefferson City MO | 2.51% | -7.71% | 2.80% | -1.24% | 3.27% | 0.40% | 8.31% |
So much for Southern charm
Although it’s quite a bummer that the cost of living is going up in traditionally affordable areas, don’t worry too much. There are still plenty of places where the cost of living decreased over the last year.
Anyway, the South is unlikely to overtake other crazy expensive places to live anytime soon. Southerners think Boston rent prices are just ridiculous, y’all.
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 increased 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 increases 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 expensive 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.
