Southern Cities Dominate List of Cheapest Places to Buy a Home

With the rising cost of living and increasing home values, the search for an affordable place to live has become of great importance to many Americans nationwide.

This is according to a new analysis by Scholaroo, which reveals which U.S. cities are the most cost-effective and least affordable.

When it comes to homebuying, some locations are more affordable than others, due to a number of determining factors that define living expenses in a given region.

Scholaroo conducted a comprehensive evaluation of key parameters, such as the average home value and the average amount of property taxes, in order to unveil the cities that offer the most cost-effective prospects for purchasing and maintaining a home among the 152 locations that were examined across the United States.

Top 10 Cheapest Cities to Live in:

1. Montgomery, AL
2. Birmingham, AL
3. Mobile, AL
4. Jackson, MS
5. Shreveport, LA
6. Columbus, GA
7. Charleston, WV
8. Louisville, KY
9. Fort Wayne, IN
10. Oklahoma City

Top 10 Costliest Cities to Live in:

1. Anaheim, CA
2. Long Beach, CA
3. Huntington Beach, CA
4. Los Angeles
5. Fremont, CA
6. New York
7. Oakland, CA
8. San Jose, CA
9. San Francisco
10. Yonkers, NY

Of the top 10 cheapest cities to buy a home this year, nine are located in the South. The only exception is Fort Wayne, Indiana, which ranks ninth overall.

Alabama stands out for having three cities—Montgomery, Birmingham, and Mobile—that are the cheapest places to buy a house in the U.S.

Eight out of the top 10 costliest cities to purchase a home are located in California, and among them, San Francisco stands as the second-most expensive in the nation.

Despite their high real estate costs, Yonkers and New York City are expected to experience minimal growth in the upcoming years, with projected increases of only 0.2% and 0.43%.

To read the full report, including more data, charts, and methodology, click here.