Rent prices increased by an average of 5.5% in the U.S. last year, while housing prices hit a record high in May, according to the Black Knight Home Price Index. Living in the U.S., in other words, isn't going to get cheaper anytime soon, but there are still some places in the country that can be affordable.
This month, U.S. News and World Report released its ranking of the cities with the lowest cost of living, based on the median gross rent and annual housing costs for mortgage-paying homeowners.
The ranking was done using data from sources including the U.S. Census Bureau, the FBI and the U.S. Department of Labor. The following factors were taken into account:
- Quality of life (measures how satisfied residents are with their daily lives)
- Value of index (measures how comfortably the average resident can afford to live within their means)
- Desirability (measures whether people want to live in a given metro area)
- Job market (measures the strength of each metro area's job market)
The No. 1 most affordable place to live in the U.S.: Hickory, NC
Hickory, North Carolina, located in Catawba County, at the foot of the Blue Ridge Mountains, topped the list. The area is a home for retirees and families, according to U.S. News and the World Report. It is becoming a destination for young professionals, too, since it's not too far from other cities in the state like Charlotte and Asheville.
The average Hickory home value is $276,748, up 5.3% over the past year, according to Zillow's Home Value Index. The average salary in Hickory, according to ZipRecruiter, ranges between $33,028 to $63,063 annually.
The Hickory region is known as "The Furniture Capital of the World," according to Southern Living. The area is known for its Hickory Furniture Mart, which has more than 25 showrooms and is considered one of the best places to buy furniture in North Carolina.
The most affordable places to live in the U.S.
- Hickory, NC
- Youngstown, OH
- Huntington, WV and Ashland, KY-OH
- Huntsville, AL
- Fort Wayne, IN
- Beaumont, TX
- Peoria, IL
- Green Bay, WI
- Quad Cities, IA-IL
- Knoxville, TN
The second most affordable place to live in is Youngstown, Ohio. Located halfway between Pittsburgh and Cleveland, Youngstown used to be known as a steel capital but has been adapting since the industry's collapse in the 1970s.
Since 2010, new businesses have been popping up in its downtown, according to U.S. News and World Report.
The average cost of a home in the area is $119,900, according to Realtor.com, while the average income is $31,020, according to the U.S. Census Bureau.
No. 3 on the list is the Huntington-Ashland, West Virginia, Kentucky, Ohio metro area (known locally as the "Tri-State"). The region spans seven counties and is located along the Ohio River.
Of the three cities in the "Tri-State," Huntington, West Virginia is the largest.
According to Zillow's Home Value Index, the average Huntington home value is $115,370, up 1.4% over the past year. The average home value in Ashland, Kentucky, is $94,290, up 4.2% over the past year and the average home value in Ashland, Ohio, is $164,791, up 3.5% over the past year.
The area is most known for its various outdoor destinations, including several parks and lakes.
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