The Real Cost of ‘Cheap’: What Low-Cost Cities Don’t Tell You In Their Marketing
Written by
Stacy Sare Cohen
Edited by
Amen Oyiboke
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Moving to a low-cost city might seem like a ‘dream come true’ when a future mortgage or rent payment for a 4,000 square foot house is half of what you’re paying for a small one-bedroom home where you currently live.
However, before you sign on the dotted line and pack up your belongings, ask yourself whether the money you could potentially save on housing is worth what you’d be giving up — and the additional expenses you could incur over the long term.
What the glossy brochures fail to mention are the hidden drawbacks of cheaper cities, such as lower salaries and limited healthcare access — factors that can impact your wallet and quality of life as you plan for retirement. Today, we’re shining a bright light on the reality of low-cost cities and what they leave out of their marketing.
Lower Wages and Fewer Career Opportunities
Many cheap cities that fall below Zillow’s median housing sale price of $359,241 may have struggling job markets with low wages, fewer opportunities for career mobility and lower earning potential.
The following cities were ranked as the worst for employment opportunities, according to a Checkr study that analyzed data from the U.S. Census Bureau, Bureau of Labor Statistics, and Bureau of Economic Analysis, cited CNBC.
- Bakersfield, California
- Scranton, Pennsylvania
- McAllen, Texas
- Fresno, California
- Memphis, Tennessee
- Jackson, Mississippi
- Rochester, New York
- Toledo, Ohio
- Augusta, Georgia
- Spokane, Washington
Limited Healthcare Access
Many cheap cities, in rural or remote areas, have fewer hospitals, medical providers, and specialists nearby than larger metropolitan and suburban areas do. This can mean traveling farther to reach quality medical care, crowded waiting rooms, and having to book appointments months in advance.
In many cases, the most experienced medical professionals prefer working at larger university teaching hospitals. For older retirees, limited access and longer ambulance wait times during a medical emergency can pose significant health risks.
Higher Transportation Costs
If you’re moving from a metropolitan city with good public transportation access to a town with limited public transit, you may have to buy a car to get around. If you’re shy about driving, you may have to invest in driving lessons. The average yearly cost of car ownership in the U.S. is $12,297, according to Stacker. That’s $61,485 over five years.
These costs include fuel, car insurance, maintenance, repairs, financing and taxes and fees, added Stacker. Plus, rural households spend more on transportation because of longer distances traveled, according to the Bureau of Transportation Statistics. If you’re driving 30 minutes for groceries, to and from your job or doctor’s appointments, the costs can add up quickly.
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