This southern city has the lowest cost of living in the United States due to affordable home prices.
McAllen in Texas is located along the US-Mexico border and was ranked number one for lowest cost of living according to real estate agent.com.
Housing costs are much lower compared to the national average, lowering the overall cost of living, with the average home price being just $275,000.
“Nationally, the housing price-to-income ratio is around 5.5 in August 2024, meaning home prices are 5.5 times the median household income,” he told Realtor .com John Macke, senior research analyst at John Burns Research and Consulting.
Additionally, property taxes are much lower in the southern state and there are no income taxes, which helps keep the cost of living lower, according to real estate agent Cara Ameer.
McAllen, Texas, is located along the US-Mexico border and is ranked number one by Realtor.com for lowest cost of living in the United States.
Housing costs are much lower in McAllen compared to the national average, lowering the overall cost of living. The median home price in the city is $275,000.
Compared to national averages, those paying $100 for necessities equates to McAllen locals paying $86.92, according to Realtor.com.
Overall, the cost of living in McAllen is 13 percent lower than the national average.
And because of its proximity to the border, it’s a popular shopping destination for tourists taking a day trip, according to CNBC.
The city of almost 38,000 inhabitants is a “shopping mecca” for millions of people a year, according to its website.
All of the cities listed on Realtor.com are located in the South and Midwest, with Wichita, Kansas, coming in second, followed by Little Rock, Arkansas.
Three Ohio cities, the most of any state on the list, made the cut: Toledo came in fourth, Dayton in sixth and Akron in eighth.
Overall, the cost of living in McAllen is 13 percent lower than the national average.
Add that property taxes are much lower in the southern state and there is no income tax, which helps keep the cost of living lower.
Other cities include Scranton, Pennsylvania; Tulsa, Oklahoma; Birmingham, Alabama; and El Paso, Texas.
Wichita came in second, with home prices around $293,000 on average.
The city has a long history of entrepreneurship, being the birthplace of Pizza Hut, White Castle and Koch Industries, according to Realtor.com.
Little Rock came in third and is popular with Californians looking for a cheaper lifestyle, the outlet said.
The median home price is $291,000.