7 Key Signs It’s Time To Relocate for a Better Cost of Living
Written by
Kerra Bolton
Edited by
Zuri Anderson
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When your budget is stretched thin, small financial pressures can start to feel like a daily battle.
If rising rent, grocery bills or transportation costs are making it hard to build savings or maintain your lifestyle, relocating might offer real relief.
A move isn’t easy; but the financial payoff can be significant. Here are seven key signs it’s time to relocate for a better cost of living.
Housing Costs Eat Your Paycheck
Housing is often the biggest line item in a household’s budget, and when it consistently takes up more than 30% of income, it may signal that the local market is no longer sustainable. Rising rent renewals, shrinking availability of affordable units or constant bidding wars can strain finances and make it difficult to maintain stability.
According to UCLA public policy professor Michael A. Stoll in the latest United Van Lines migration study, many Americans are already choosing more affordable regions.
“As housing costs continue to rise, Americans are moving to lower density, more affordable regions between expensive, economic-driving states,” Stoll said. “Delaware is moving up and an interesting spot for retirees, providing affordability but in close proximity to cities like Philadelphia and D.C.”
Your Daily Commute Drains Your Wallet
If an individual is driving farther to find affordable housing, paying more for gas or relying on expensive public transit, transportation may be quietly draining their income.
Rising commute times or widening distances between home and work can signal a mismatch between a person’s location and their financial reality.
Cutting Back Isn’t Enough
Many households try to manage rising costs by trimming discretionary expenses — canceling subscriptions, reducing dining out, delaying purchases or switching to lower-cost brands.
However, if someone has already tightened their budget and still feels financially strained, it’s a sign that the problem may be bigger than personal spending habits.
Even after making responsible cuts, essential costs can continue climbing, and the savings from small adjustments may no longer bridge the gap. When someone has done everything “right” and still can’t get ahead, relocating to a more affordable area may offer the structural relief their current city no longer can.
Prices Rise Faster Than Your Pay
When the cost of groceries, utilities, child care or healthcare rises faster than wages, households face an expanding affordability gap. Even stable incomes can feel insufficient when essential expenses climb year after year.
Jen Barnett, founder of Expatsi, a firm that helps Americans relocate abroad, said one clear warning sign is relying on credit cards or other debt to cover basic needs like food or healthcare.
“It’s one thing to be stretched thin for six months or a year, and it’s another thing to see no end in sight or live in fear of one hospitalization,” she said.
Saving Feels Impossible
Even with a steady income, some households find that there’s never anything left over at the end of the month. If building an emergency fund feels out of reach, or if unexpected expenses routinely wipe out any progress, it may signal that the local cost of living is simply too high.
Consistently living paycheck to paycheck, despite careful budgeting, suggests a structural mismatch between income and expenses. In lower-cost cities, everyday essentials, housing and transportation often require a smaller share of a household’s budget, creating the breathing room needed to rebuild savings and regain financial stability.
Remote Work Opens the Door
Flexible work arrangements can remove the necessity of living in a high-cost area.
If someone can maintain their income while working remotely or in a hybrid schedule, relocating to a more affordable region can significantly stretch their budget without sacrificing their job.
“If your income is remote or freelance, make sure the move strengthens your earning ability,” Barnett said.
High Costs Delay Your Dreams
When financial pressures push major goals such as buying a home, retiring comfortably or pursuing new opportunities further into the future, relocating may be the most realistic way to regain stability and momentum.
“The pattern is unmistakable: Americans are trading square footage for quality of life, megacities for mid-markets, and high costs for breathing room,” said Ryan Carrigan in moveBuddha’s 2025 Moving Trends Report.
Carrigan explained, “These insights about moves in 2025 don’t just mark where people are going; they also reveal where they are coming from. They reveal where they want to go and what’s still worth moving for.”
More From GOBankingRates
