This U.S. City Was Just Named the Best Place to Live for Low Cost of Living

With inflation and mortgage rates straining Americans’ finances and plans to buy a home, many are looking to relocate to communities with lower housing and living costs. States like New York, California, and Illinois are losing residents to South Carolina, Texas, and Idaho, where people can still get more bang for their buck without compromising their standard of life or job opportunities. But if affordability is truly a top priority for you, consider moving to South Bend, Indiana, which just topped Niche.com’s list of cities with the lowest cost of living in America.

South Bend, which is located on St. Joseph River in Northern Indiana and is home to about 103,000 residents, received an overall grade of A- based on its performance in several categories, such as housing, jobs, diversity, and cost of living. According to Zillow, the median home value in South Bend is $169,000, or over $200,000 below the country’s average, and the median rent is $935, which is also lower than the national average of $1,268. In addition, the overall cost of living, which takes into account expenses such as groceries, transportation, clothing, and utilities, is 18 percent lower than the national average.

South Bend is home to the University of Notre Dame, which has left its mark on the city’s social life. It offers tons of recreational activities, restaurants, bars, sports, and arts events. Those seeking a more active lifestyle closer to nature will also thrive here, as there are dozens of parks and hiking trails. Howard Park, for example, along the St Joseph River, boasts 13 acres of facilities, including a playground and an ice trail.

South Bend’s job market received a B from Niche.com, and its commute — an A. According to the Bureau of Labor, the unemployment rate in the city in February 2024 was 4.7 percent, with education, healthcare, and manufacturing among the top industries with the largest employment in the area.

However, the city’s lowest scores were in the crime and safety (D+) and weather (C) categories, as South Bend records more violent and property crimes per capita than the nation’s average

Another city in Indiana made it to the top three list of the most affordable places in the country, and that’s Evansville, which ranked third. Second was Brownsville in southern Texas on the Gulf of Mexico.

You can read Niche.com’s full list here.