Yahoo Finance The 25 Most Affordable, Fast-Growing Cities To Consider in 2024
The population in some of the largest cities in America has been declining as Americans flee to smaller cities with more affordable living costs. Of the 10 most populous U.S. cities, four saw populations decline from July 2021 to July 2022, including New York, Los Angeles, Chicago and Philadelphia, according to U.S. Census Bureau data. Meanwhile, smaller cities — particularly cities in Texas and Florida — have seen population booms over that same time period, as Americans move to more metros with lower costs.
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To find the most affordable, fastest-growing cities in America, GOBankingRates looked at the latest American Community Survey from the U.S. Census Bureau to identify the 200 biggest cities in terms of total population, and then analyzed these cities based on their population changes in recent years, the median household income, the average rent, the average home values and overall cost of living.
Here’s a look at the top 25 cities that made the cut.
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Key Findings
All but one of the top five most affordable, fastest-growing cities are located in the South, and two cities are located in Texas. The top five cities are Killeen, Texas; Sioux Falls, South Dakota; Clarksville, Tennessee; Oklahoma City; and Lubbock, Texas.
Among the affordable cities with the largest year-over-year population growth, all of the top five are located in the South, with two in Texas and two in Tennessee — Frisco, Texas (4.63% population increase from 2021 to 2022); McKinney, Texas (3.57% population increase from 2021 to 2022); Murfreesboro, Tennessee (3.03% population increase from 2021 to 2022); Clarksville, Tennessee (2.67% population increase from 2021 to 2022); and Gainesville, Florida (2.65% population increase from 2021 to 2022).
Texas had the most cities in the overall ranking, with six out of the 25 cities that made the list.
Outside of the top 25 cities, Charlotte ranked No. 33, Las Vegas ranked No. 40, Atlanta ranked No. 44 and Austin ranked No. 51.
1. Killeen, Texas
Located in central Texas, Killeen is home to the Fort Hood military base. Its 2022 population sits at 153,708, a 2.42% increase from 2021 and a 9.39% increase from 2017. Although the median household income is below the median income for the U.S. as a whole ($57,086 versus $75,149), housing in Killeen is also significantly more affordable. The average rent is $1,242, while the average home value is $225,885. The overall cost of living is just 83.7% of the average cost of living in the U.S.
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2. Sioux Falls, South Dakota
Sioux Falls is the most populous city in South Dakota, and that population has been growing — it’s up 13.5% from 2017 to 2022. The estimated annual total expenditures to live in Sioux Falls add up to $66,181, while the U.S. average is $72,967.
3. Clarksville, Tennessee
Clarksville is one of three Tennessee cities to make the ranking, with a surging population and affordable living costs. The population has increased 13.61% from 2017 to 2022, and overall living costs are 89.1% of the U.S. average. The average home value in this northern Tennessee city is $295,087.
4. Oklahoma City
The fourth-most populous city in our overall ranking, Oklahoma City is also the No. 4 most affordable fastest-growing city. It has the most affordable homes of any city in the ranking, with an average home value of $194,726.
5. Lubbock, Texas
Rounding out the top five is Lubbock, Texas, with a 2022 population of 258,190. The average rent in the city is $1,233, the average home value is $204,490 and the average annual expenditures total $59,176.
Methodology: In order to find the most affordable, fastest-growing cities, GOBankingRates first found the 200 biggest cities in terms of total population as sourced from the 2022 American Community Survey (ACS), as conducted by the U.S. Census Bureau. Once these 200 cities were isolated, GOBankingRates found the following for each: (1) one-year percent change in total population as sourced from the 2022 and 2021 ACS; (2) five-year percent change in population as sourced from the 2022 and 2017 ACS; (3) median household income as sourced from the 2022 ACS; (4) average 2023 rent as sourced from Zillow’s October 2023 data; and (5) typical 2023 home value as sourced from Zillow’s October 2023 data. For the city to qualify for final rankings it had to have not only a positive percent change in both factors (1) and (2), but also had to be ABOVE the national average of 0.42% one-year change and 3.14% five-year change. To qualify the city also had to have either its (4) average 2023 rent or (5) typical home value below the national average. For the cities that met the above criteria, GOBankingRates also found those cities’ (6) annual total expenditures as sourced from Sperling’s Best Places and factored out by using the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey. With all factors found, GOBankingRates then scored and combined all six factors with the lowest score being best. In final calculations, factor (4) was weighted 0.5x and factor (6) was weighted 2x. All data was collected and is up to date as of Dec. 7, 2023.
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This article originally appeared on GOBankingRates.com: The 25 Most Affordable, Fast-Growing Cities To Consider in 2024
