Image via WikipediaIt is no secret that the most desirable places to live are also among the most expensive.  Want to enjoy the good life in New York City?  You’ll have to pay more than double what you pay elsewhere for rent or to purchase a home.  A night out or a trip to the grocery store can give your wallet quite a shock. 

The cost of living can rise as a place rises in popularity.  Just think of those artsy New York neighborhoods that once drew creative types and young professionals because of their cheap rents.  Loft apartments there now cost thousands to rent and millions to own.


But not all places are so expensive.  Here are the best cities with the lowest cost of living in the nation.

Pueblo, Colorado is only 100 miles from Denver.  It is the economic and cultural hub of Southern Colorado.  Nice houses cost less than $200,000 and the low state tax rate makes it easy to keep what you earn.  Pueblo is a decent sized city in and of itself and the more cosmopolitan experiences of Denver and Boulder are not far off.  

Springfield, Illinois is another small city with low housing costs and a decent amount of infrastructure and culture.  It has its own public transit network and benefits from being the capitol of Illinois and a major tourist destination (because of the many Abraham Lincoln related attractions in the area).  

Sometimes, suburban areas can be good choices.  Covington, Kentucky, just across the border of Ohio, is considered a suburb (or twin city) of Cincinnati.  Different tax rules and lower housing costs make it more affordable than its Ohio neighbor, but at the same time, Covington residents can take advantage of Cincinnati’s transportation network and services.

Louisville is another Kentucky entry.  It is arguably the most well known city on the list because it hosts the famous Kentucky Derby each year.  People who come for the Derby will find inflated prices and big crowds.  But Louisville is a cheap place to buy a home.  Services and necessities are affordable and there is a surprisingly cosmopolitan food and arts scene.

Omaha, Nebraska is another small city with a long history.  It is known as the home of successful investor Warren Buffet and the college baseball world series.  It has more millionaire, per capita, than anywhere else in the country, but it has low housing costs and big city shops and restaurants at small city prices.  Property and sales taxes are high in Nebraska, so it might be worth checking into the Iowa side of the metro area.

Tulsa, Oklahoma is another small city with a decent amount of cultural buzz that is cheap to live in.  The cost of living is nearly 15% below the national average and housing and healthcare are reasonably priced.  Crime rates are low and there are plenty of employment options, as companies have come to the area to take advantage of the low costs.

Of course, you don’t have to run away to a small or mid-sized city to avoid high costs and low quality of life.  Places like Cleveland and Saint Louis are known for being cheaper than other large cities.  Cleveland is a historic city with plenty of culture that is trying (and for the most part succeeding) to reinvent itself as a hub for tech and modern industries.  Housing is cheap and crime rates low in most neighborhoods.  Saint Louis is taking a similar route, though it has suffered less than Cleveland did at the end of the industrial era.  There are more free things to do in Saint Louis than in any other city in the nation (save Washington DC).  Housing and grocery prices are low as well.

Looking at this list, it is apparent that the Midwest is the best region for those who want to build a nest egg.