20 Cheapest Cities To Raise a Family in the US

Raising a family is a pillar in the classic American dream, but it’s hardly a cheap endeavor. In fact, according to the Brookings Institution, the average middle-income family with two children will spend $310,605 to raise a child born in 2015 up to age 17.

That’s just the price of one child. Additionally, this data is eight years old; inflation has made that number go way up. In today’s world, $310,605 is almost exactly $400,000.

What’s a family to do to lessen the financial burden of raising a family in the U.S? One practical step they can take is to live in an area with a lower cost of living. Here’s a look at some of the cheapest cities to raise a family, according to new research from GOBankingRates.

• Annual total expenditures for a family: $80,406 
• Annual total necessities expenditures for a family: $35,979
• Cost of living index: 82.0 

In Fayetteville, residents can expect to shell out a lot of dough on groceries ($7,183 per year) and on healthcare, which, according to GOBankingRates’ study, is $8,145 annually — one of the highest amounts for the category on this list. But you’ll save some on transportation, which is $6,325 annually.

• Annual total expenditures for a family: $80,406 
• Annual total necessities expenditures for a family: $36,560 
• Cost of living index: 82.0 

In Laredo, expect to spend quite a pretty penny on utilities, which cost an average of $5,499 a year. Groceries are expensive too: $7,045 annually. But you’ll save a bit on healthcare, which costs $6,747 annually. 

• Annual total expenditures for a family: $80,406 
• Annual total necessities expenditures for a family: $36,338 
• Cost of living index: 82.0 

El Paso, Texas shines as one of the more affordable cities. You will dish out a fair amount on transportation ($7,539 annually), but you’ll save a little on groceries, which cost $7,030 annually. Healthcare is also pretty reasonable here — $6,832 a year.

• Annual total expenditures for a family: $80,014  
• Annual total necessities expenditures for a family: $36,365 
• Cost of living index: 81.6

Housing isn’t particularly cheap in Wichita: It costs $9,408 annually, but other things, like housing, are more forgivingly priced — $9,408 annually.

• Annual total expenditures for a family: $79,720  
• Annual total necessities expenditures for a family: $36,389 
• Cost of living index: 81.3  

In Winston-Salem, the annual cost of groceries is steep, at $7,274. Healthcare costs aren’t too bad though: $6,840 annually.

• Annual total expenditures for a family: $79,327  
• Annual total necessities expenditures for a family: $35,540  
• Cost of living index: 80.9 

Over in Little Rock, Arkansas, the cost of utilities is $5,331 a year, which isn’t too steep, comparatively; but grocery costs are high at $7,320 a year. 

• Annual total expenditures for a family: $79,131  
• Annual total necessities expenditures for a family: $36,325   
• Cost of living index: 80.7 

The annual cost of groceries in Lubbock, Texas is somewhat reasonable, at $7,022 a year. Healthcare is very expensive though: $8,230 annually. 

• Annual total expenditures for a family: $79,033   
• Annual total necessities expenditures for a family: $35,723  
• Cost of living index: 80.6  

In Fort Wayne, Indiana, beware of somewhat steep healthcare at $6,861 a year, but relish a lower grocery bill, which costs $6,984 a year.

• Annual total expenditures for a family: $77,660  
• Annual total necessities expenditures for a family: $35,127 
• Cost of living index: 79.2 

Augusta, Georgia boasts relatively expensive groceries, which cost $7,282 annually. On the other hand, healthcare is pretty affordable at $7,003 a year.  

• Annual total expenditures for a family: $77,170  
• Annual total necessities expenditures for a family: $35,621  
• Cost of living index: 78.7

In Des Moines, Iowa, the cost of utilities can’t be beat, weighing in at $5,023 annually. Transportation costs are also very reasonable at $6,128 a year. 

• Annual total expenditures for a family: $76,288  
• Annual total necessities expenditures for a family: $34,781  
• Cost of living index: 77.8 

Amarillo, Texas also shines in the department of transportation, with annual costs coming to $6,144. The price of healthcare isn’t terrible, but also isn’t fantastically cheap at $7,209 a year. 

• Annual total expenditures for a family: $75,993   
• Annual total necessities expenditures for a family: $34,387  
• Cost of living index: 77.5 

The annual cost of groceries in Memphis, Tennessee is pretty reasonable compared to other cities, weighing in at $7,129. You’ll save even more on healthcare, which costs $6,868 a year. Utilities, however, are on the pricier end at $5,399 a year.

• Annual total expenditures for a family: $75,797  
• Annual total necessities expenditures for a family: $34,464 
• Cost of living index: 77.3 

The cost of utilities in Montgomery, Alabama is on the higher end for this list, at $5,707 a year, but transportation is a steal at $6,677 a year.

• Annual total expenditures for a family: $75,111 
• Annual total necessities expenditures for a family: $33,197  
• Cost of living index: 76.6  

The cost of groceries in Shreveport, Louisiana is pretty decent at $6,953 a year, but other expenses, such as the cost of housing — $6,881 annually — will put a bigger dent in your budget. 

• Annual total expenditures for a family: $74,195  
• Annual total necessities expenditures for a family: $34,118  
• Cost of living index: 76.4 

In Columbus, Georgia, healthcare isn’t terribly cheap — it costs $7,081 on an annual basis, and housing is very pricey at $7,479 a year. But residents save some in the area of transportation ($6,546 annually).

• Annual total expenditures for a family: $74,228 
• Annual total necessities expenditures for a family: $33,326  
• Cost of living index: 75.7

In Birmingham, Alabama, the annual cost of groceries is formidable at $7,129 a year, and healthcare is extravagant at $8,656, but you’ll save a fair chunk of change on housing, which is $4,627 annually.

• Annual total expenditures for a family: $71,973 
• Annual total necessities expenditures for a family: $33,547 
• Cost of living index: 73.4

Housing isn’t particularly cheap in Brownsville, Texas, costing $7,445 annually, but you’ll save substantially on utilities, which cost $5,124 a year. 

• Annual total expenditures for a family: $70,894 
• Annual total necessities expenditures for a family: $29,793 
• Cost of living index: 72.3

In Cleveland, Ohio, housing is very affordable, costing $4,030 a year — the lowest on this list. But you’ll pay a lot for transportation: $7,424 a year.

• Annual total expenditures for a family: $70,796    
• Annual total necessities expenditures for a family: $30,490 
• Cost of living index: 72.2 

Housing is pretty affordable in Toledo, Ohio, costing $4,798 a year, and healthcare is reasonable, comparatively, at $6,428 a year. But utilities are pricey for such an otherwise cheap family city: $5,449 a year.

• Annual total expenditures for a family: $67,561  
• Annual total necessities expenditures for a family: $29,600   
• Cost of living index: 68.9 

The cheapest city on this list for families is Akron, Ohio, where housing costs just $4,508 a year. Utilities are also quite reasonable, costing $5,174 annually. One area that will set you back quite a bit though is groceries, which cost $7,144 a year.

For this piece, GOBankingRates found the 150 cities that have the most families living in them according to the 2021 American Community Survey as conducted by the U.S. Census Bureau. With these 150 cities isolated, GOBankingRates found the annual living expenses in all 150 cities, using the 2021 Consumer Expenditure Survey (for a married couple with children) data from the Bureau of Labor Statistics. The itemized costs of living evaluated were housing, groceries, utilities, healthcare and transportation, collectively termed “necessities”, as well as an overall cost of living score (which was the only determining scoring factor) based on each state’s respective cost of living index for each category, sourced from Sperling’s Best Places. All data was collected and is up to date as of Aug. 17, 2023.

Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.