McAllen, Texas Ranks as the Most Affordable U.S. City for Living Costs
A recent report from Realtor.com places McAllen, Texas, at the top of the list of U.S. cities with the lowest cost of living. The ranking, based on the U.S. Department of Commerce’s Bureau of Economic Analysis regional price parities (RPP) data, considers price variations across states and metro areas. McAllen has an RPP of 86.92%, meaning its cost of living is roughly 13% below the national average. Residents in McAllen spend about $86.82 for every $100 on basic necessities, and the city’s median home price stands at $275,000.
Hannah Jones, a senior economic research analyst at Realtor.com, attributes McAllen’s affordability largely to its housing market. With ample land available and continuous investments, the housing supply in McAllen rose 41% year-over-year in September. This growth in housing stock keeps prices relatively low, with the home price-to-income ratio at 4.8. As Jones explains, “There’s been a good amount of investment in the area and that keeps home prices relatively low.”
McAllen’s border location also makes it a hub for tourism and international trade, and the city’s rich bicultural community draws visitors, especially those from Mexico, who cross the border frequently for shopping.
Top 10 U.S. Cities with the Lowest Cost of Living:
- McAllen, Texas
- Wichita, Kansas
- Little Rock, Arkansas
- Toledo, Ohio
- Scranton, Pennsylvania
- Dayton, Ohio
- Tulsa, Oklahoma
- Akron, Ohio
- Birmingham, Alabama
- El Paso, Texas
Wichita, Kansas, the second-ranked city, has a cost of living approximately 11% below the national average with a median home price of $292,700. Known as “The Air Capital of the World,” Wichita also has significant industrial and educational hubs.
