10 U.S. Cities with the Lowest Cost of Living Where Everything from Buying a Home to Grocery Shopping is Relatively Affordable

Realtor.com has identified the top 10 places in the US with the lowest cost of living.
The ranking takes into account how much residents pay for their homes, as well as expenses such as food and gas.
Small towns in the South and Midwest dominate the list, with a city in Texas taking the top spot.

While inflation in the United States is gradually soothingmany people have not yet felt tangible relief.

As inflation reaches a 40-year high in 2022, prices for everyday expenses in the U.S. – including gas, food, entertainmentand housing – increased significantly. Although the prices are starting moderatemany American households continue to struggle with debtliving with from paycheck to paycheckor seriously charged with costswhich means they spend over 30% of their income on housing.

While the cost of living varies greatly by state and city, several places throughout the United States can offer residents a comfortable standard of living at prices that won’t break the bank.

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

The research team found that U.S. cities with the lowest costs of living were primarily smaller towns in the South and Midwest – two in Texas and three in Ohio – reinforcing these regions’ current 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 much lower house prices in smaller cities.

“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 average list price of U.S. homes fell 1% year over year to $425,000 in September, the company said.

Below are the 10 U.S. cities with the lowest cost of living.

10. El Paso, Texas