The median household income in the US is just over $50,000. While this is a comfortable wage in many places, there are parts of the country where the cost of housing alone would devour that salary. In 2013, the Bureau of Economic Analysis recently released data adjusting a city’s median income to the actual cost of living in that city. For example, while the median personal income in San Francisco is a healthy $41,000 (compared to the overall US median of $27,000), due to the sky-high costs of housing and other living expenses, that salary adjusts to a “real” figure of about $32,000. We’ve used this information, combined with other metrics, to create a list of the 10 best cities to live in if you have a household income close to the national average.
Memphis, TN
Hailed as the “birthplace of and rock and roll,” Memphis is one of the South’s storied cities. It’s also surprisingly affordable. The overall cost of living is 27 percent below the national average. Utilities cost 16 percent less here, and groceries average out to 8 percent less than the rest of the country. Home prices are where you’ll see the biggest savings, though. Incredibly, the cost of housing is 61 percent below the US mean. The median list price for a house is $98,000, and hundreds of desirable homes are available for less than $200,000. BEA data shows that Memphis’s median personal income of $28,600 spends more like $29,500 when adjusted for cost of living.
Louisville, KY
Raise a mint julep to Louisville, where the median income of $29,000 translates to about $30,300 real dollars. Though the city’s median home price of $139,000 is slightly higher than Kentucky’s overall median of $120,000, it still beats the national median of $181,000 by a country mile. The overall cost of living in Louisville is about 10 percent below average. Outside of housing, your biggest savings will come from utilities and grocery costs.
Dayton, OH
Dayton’s median income of $27,000 gains about $1,100 when adjusted. The cost of living here is 24 percent below average. Though utility costs in Dayton run about 10 percent higher than average, that is easily offset by saving in other areas, like groceries. Milk, beer, and pizza are up to 10 percent cheaper here. Your biggest bonus will come from Dayton’s housing index, which is a shocking 73 percent below the national average with a median home price of about $73,000.
Pueblo, CO
In Pueblo, the median income is about $25,600, but thanks to a cost of living index that’s 17 percent below the national average, that income stretches to about $26,400. Healthcare costs and utilities, like water and electric, are about eight percent cheaper than average in Pueblo. You’ll save an additional six percent at the grocery store, while housing will run you 38 percent less than the national average. The median home price is about $117,000, less than half Colorado’s median of $237,000.
Akron, OH
Moving to Akron will save you about 20 percent against the national average cost of living. While utilities, transportation, and grocery costs are equal to or slightly above the US mean, housing proves once again to be the area of greatest savings. Akron’s housing cost index is 65 percent below average, with a median home price of about $87,000. More good news: $29,000 in Akron dollars works out to about $31,500 real dollars.
Detroit, MI
It costs about 27 percent less than average to live in the Motor City. While the median list price for a home in Michigan is $129,000, in Detroit, that figure is just $60,000. That’s one-third of the national median. Out of 207 metropolitan areas ranked by median home price, Detroit came in at number 203. The only downside is that, according to BEA data, the median Detroit income of $31,000 drops slightly, to about $29,700, when adjusted.
Danville, IL
Your salary makes the greatest leap in Danville, where the median income of $30,000 jumps to $36,000 when adjusted for cost of living. That’s like getting a 20 percent raise. While the state’s median home price is just over $190,000, in Danville, it’s $66,000. Overall, the cost of living is 19 percent below average. Groceries and health care costs are about 10 percent lower than average.
Buffalo, NY
You can enjoy the beauty of Lake Erie and Niagara Falls without breaking the bank. The cost of living in Buffalo is 26 percent below the national average. While the median home price for New York State is $295,000, Buffalo’s median list price is less than a quarter of this figure at $67,000. While your paycheck only adjusts up by about $400, the incredible savings offered by the real estate market should more than compensate.
South Bend, IN
Moving to South Bend on the Saint Joseph River could save you some considerable cash. Its cost of living is 17 percent below the national average. Utilities are one impressive savings area, cutting about 20 percent off your bills compared to the US mean. Housing prices aren’t too shabby either; at a median $86,000, they’re about half the national figure. The median income here adjusts to about $1,000 extra per year as well.
Brownsville, TX
Despite its sprawling metropolitan regions, Texas has a surprisingly low overall median when it comes to housing costs, about $128,000. In the border city of Brownsville, it’s even lower, with a median list price of just $80,000. Overall, the cost of living is about 24 percent below average. It’s another great dollar-stretcher city, where the median income of $20,000 adjusts to just over $22,000.
2 Point Highlight
Your salary makes the greatest leap in Danville, where the median income of $30,000 jumps to $36,000 when adjusted for cost of living.
Out of 207 metropolitan areas ranked by median home price, Detroit came in at number 203.
