If you are considering a move — whether for a new job, retirement, or remote work flexibility — cost of living should be a major factor in your decision. The difference between living in San Francisco and San Antonio can mean tens of thousands of dollars in annual savings on the exact same lifestyle. Here is a data-driven guide to the most affordable major metro areas in the United States.
What Is the Cost of Living Index?
The Cost of Living Index (COLI), published quarterly by C2ER (the Council for Community and Economic Research), measures relative price levels across more than 270 urban areas. The national average is set at 100. A city scoring 90 is 10% cheaper than the national average, while a city at 150 is 50% more expensive.
The index is calculated from six weighted categories:
Housing (largest weight, roughly 29%): Apartment rent, home prices, mortgage payments
Groceries (roughly 16%): Food staples and everyday items
Transportation (roughly 10%): Gas, insurance, public transit
Healthcare (roughly 5%): Doctor visits, prescriptions, insurance premiums
Utilities (roughly 10%): Electricity, natural gas, water
Miscellaneous (roughly 30%): Clothing, entertainment, personal careHousing dominates the calculation and explains most of the variation between expensive and affordable cities.
Top 10 Most Affordable Major Metro Areas
Based on the latest COLI data for major metro areas with populations above 200,000, here are the cheapest cities to live in:
Detroit, MI — CoL Index: 89.7 (10.3% below average). Housing index of just 68.5 makes Detroit one of the most affordable housing markets in the country. Median home prices in the metro area are roughly $220,000 compared to the national median of $407,500.
San Antonio, TX — CoL Index: 90.8 (9.2% below average). No state income tax plus affordable housing (index: 74.2) makes San Antonio attractive for both workers and retirees.
Indianapolis, IN — CoL Index: 92.4 (7.6% below average). A diversified economy with healthcare, logistics, and tech sectors. Housing index of 76.3 is well below average.
Columbus, OH — CoL Index: 95.2 (4.8% below average). Home to Ohio State University and a growing tech scene, Columbus offers affordable living with strong job growth.
Pittsburgh, PA — CoL Index: 96.8 (3.2% below average). Formerly a steel town, now a healthcare and education hub with housing costs (index: 82.5) well below national average.
Houston, TX — CoL Index: 96.3 (3.7% below average). The energy capital offers no state income tax and affordable housing relative to its size as the fourth-largest US city.
Kansas City, MO — CoL Index: 97.3 (2.7% below average). Low housing costs (index: 85.6) and a growing startup scene make KC an under-the-radar choice.
Charlotte, NC — CoL Index: 100.5 (essentially national average). A major banking center with strong job growth and moderate costs across all categories.
Raleigh, NC — CoL Index: 102.1. The Research Triangle area offers some of the best job growth in the country with near-average living costs.
Dallas, TX — CoL Index: 102.4. Another Texas metro with no state income tax and housing costs (index: 96.8) just below the national average.The Most Expensive Cities for Comparison
To put these numbers in context, here is what the most expensive metros look like:
San Jose, CA — CoL Index: 191.8 (housing index: 310.5)
New York, NY — CoL Index: 187.2 (housing index: 282.3)
San Francisco, CA — CoL Index: 179.6 (housing index: 295.8)
Boston, MA — CoL Index: 162.4 (housing index: 227.3)
San Diego, CA — CoL Index: 160.1 (housing index: 232.4)The housing index gap tells the real story. In San Jose, housing costs are more than 4x what they are in Detroit. A modest home that costs $250,000 in Indianapolis might cost over $1,000,000 in San Jose for a comparable property.
Remote Work: The Salary Arbitrage Opportunity
The rise of remote work has created an unprecedented opportunity for geographic arbitrage — earning a high-cost-city salary while living in a low-cost area. Consider this scenario:
A software developer earning $150,000 in San Francisco (CoL Index: 179.6) who moves to Indianapolis (CoL Index: 92.4) effectively gives themselves a massive raise in purchasing power. That $150,000 salary in Indianapolis is equivalent to roughly $290,000 in San Francisco purchasing power. Even if the employer adjusts the salary down by 10-15%, the worker comes out significantly ahead.
According to Census Bureau data, net domestic migration patterns show continued movement from high-cost coastal metros toward affordable Sun Belt and Midwest cities — a trend accelerated by remote work adoption.
Category-Level Differences Matter
When comparing cities, look beyond the overall index. Two cities might have the same composite score but very different breakdowns:
Detroit has the cheapest housing (68.5) but above-average transportation costs (108.2)
San Antonio has very low housing (74.2) and below-average groceries (95.3) but average utilities (100.6)
Pittsburgh has cheap housing (82.5) but above-average utilities (108.6)Your personal spending profile matters. If you own your home outright, housing costs are less relevant. If you commute daily, transportation costs matter more. Use our Cost of Living Calculator to compare any two cities across all six categories.
How to Evaluate a Move
Before relocating for lower costs, consider the complete financial picture:
Salary adjustment: Will your employer reduce your pay for a lower-cost area? Even with a 10% pay cut, most moves from expensive to affordable cities result in a net gain.
State taxes: Texas, Florida, Tennessee, and several other states have no income tax. Moving from California (top rate 13.3%) or New York (top rate 10.9%) to Texas saves thousands annually. See our guide on 2025 tax brackets for details.
Career growth: Some industries cluster in expensive cities. Evaluate whether your career trajectory depends on being in a specific market.
Quality of life: Consider healthcare access, schools, climate, and cultural amenities alongside cost data.Use our Cost of Living Calculator to run a personalized comparison between any two cities, and check how your salary stacks up nationally with our Salary Percentile Calculator.