Moving Rates.org

The largest expense most people incur in their lifetime is their home. As a result, housing costs are a very important factor to consider when moving. Your income can go a lot further if you are not devoting as much expense to housing costs. Living in one of the cheapest U.S. cities may help you better prepare for retirement and education costs.

Ranked below are the top 10 cheapest U.S. cities with metropolitan areas of more than 1,000,000 people:

1. Detroit, MI – $19,000*
2. Atlanta, GA – $113,500
3. Cleveland, OH – $114,500
4. Rochester, NY – $121,700
5. Indianapolis, IN – $123, 300
6. Buffalo, NY – $128,800
7. Cincinnati, OH – $129,300
8. Tampa, FL – $131,300
9. Pittsburgh, PA – $135,000*
10. Columbus, OH – $135,100

The next ten cheapest U.S. cities are:

11. Oklahoma City, OK – $135,500
12. Saint Louis, MO – $138,000
13. Phoenix, AZ – $138,000
14. Las Vegas, NV – $138,100
15. Orlando, FL – $140,500
16. Kansas City, KS/NO – $141,400
17. Birmingham, AL – $146,000
18. New Orleans, LA – $157,900
19. San Antonio, TX – $158,000
20. Houston, TX – $158,900

The above figures are third quarter 2010 median home prices from the National Association of Realtors. The statistics are for existing home, condo, and co-op sales in U.S. metropolitan areas.

The above listed areas have much more affordable housing costs than in large cities in the northeast and west coast. For comparison, Boston, MA had a median home price of $366,500 and the Seattle, WA area median price was $308,200. The most expensive areas for U.S. median home prices are in the Honolulu, HA, San Francisco, CA, Southern California, and New York City areas.

While housing costs are important, people who are moving should also consider job opportunities and pay, recreational opportunities, and cultural amenities prior to finalizing a move.

*estimates

Job opportunity is typically a key factor in any move. The Milken Institute has released their annual study ranking how well cities create and sustain jobs and economic growth. This study of U.S. metropolitan areas factors in jobs, wages and salary, and technology growth in determining the rankings. Southern cities, particularly in Texas, which generally have lower housing and wage costs, dominate this year’s list.

Based on the results of the study, the top ten U.S. cities for jobs in 2010 are:

1. Killeen-Temple-Ford Hood, Texas
2. Austin-Round Rock, Texas
3. Huntsville, Alabama
4. McAllen-Edinburg-Mission, Texas
5. Kennewick-Richland-Pasco, Washington
6. Washington, D.C. – Arlington – Alexandria, Virginia
7. Raleigh – Cary, North Carolina
8. Anchorage, Alaska
9. El Paso, Texas
10. Houston – Sugar Land – Baytown, Texas

It is no surprise to see Austin at number 2 on the list. The city is home to such large employers as the University of Texas, Dell Computers, and the state of Texas. Austin is of course, the state’s capital and home to the University of Texas’ main branch. Austin perennially ranks high on quality of life and affordability. The city has over a dozen colleges and the Travel Channel voted it the number one college town in the U.S. The city is also well known for its vibrant music scene.

Four other Texas metropolitan areas made the index’s top 20 best cities for jobs with Brownsville-Harlington ranking number 13, San Antonio ranking number 14, Amarillo ranking number 16, and Dallas – Plano – Irving ranking number 17.

Pacific Northwest cities fared poorly in the 2010 index. In comparison to the 2009 results for Washington State, Seattle fell 20 spots to number 37, Olympia fell 29 spots to number 36, Tacoma fell 26 spots to number 47, and Spokane fell 30 spots to number 71. Vancouver, Washington, which is part of the Portland – Beaverton, Oregon – Vancouver, WA metropolitan area, fell 70 spots to number 107. And the biggest drop in the region was in the Eugene – Springfield, Oregon metropolitan area, which fell 79 spots to number 160. Amongst smaller metropolitan areas, Bellingham, Washington fell 25 spots to number 38 and Bremerton – Silverdale, Washington fell 14 spots to number 77.

One bright spot in the region was the Tri-Cities area (Kennewick-Richland-Pasco, Washington), which held its number 5 ranking from 2009. The Tri-Cities area has benefited from large amounts of federal stimulus funds, nearly two billion dollars, which are being used to accelerate environmental clean up at the Hanford nuclear reservation. More than 3,000 jobs have been created, including 1,538 full-time Department of Energy jobs. Hanford alone is getting more money than many states received from the federal stimulus package of 2009. Nearby Yakima, Washington jumped up 37 spots to number 46 in smaller metropolitan areas.

The results of the survey seem to favor relatively smaller metropolitan areas with lower housing costs and low unemployment rates. However, the index is believed to be a good indicator of overall regional economics.

When considering a move for job opportunities, average wages, housing costs, and unemployment rates are all items in determining the best U.S. cities for jobs. But do not forget to include other quality of life factors such as cultural amenities, outdoor activities, proximity to other family members, and crime in making your moving decision.