These Are the Cheapest U.S. Cities To Live In

Whether you’re searching for your first home or looking to settle down for your golden years, moving to a new city is no small task. A number of factors play into the decision of where to live — perhaps a good school system, a vibrant cultural scene, proximity to loved ones, or even just a deli where you can become a celebrated regular. But one of the most important factors, if not the most important factor, is price. According to an analysis released in December 2025 by the Council for Community and Economic Research (C2ER), the cost of living in an urban area can be either extremely prohibitive or wildly appealing. Here are the current cities with the highest and lowest costs of living across the U.S., based on C2ER’s analysis.

The Lowest

Tupelo, Mississippi

The cost-of-living index (COLI) that C2ER uses to evaluate urban areas (which include not just cities but also counties and boroughs) takes into account factors such as the cost of housing and utilities, grocery prices, the cost of using transportation, the availability of affordable health care, and other basic goods and services. According to the C2ER’s 2025 data, Tupelo, Mississippi — where music legend Elvis Presley was born — is the least expensive U.S. city to live in, with a COLI of just 78.8. That’s more than 20% below the national average. In addition to the Elvis Presley Birthplace museum, the area is home to historical landmarks such as the Natchez Trace Parkway, an old trade route dating back thousands of years that’s currently managed by the National Park Service. These attractions, and others, make Tupelo an enticing destination for people trying to live on a budget.

Harlingen, Texas

Harlingen, Texas, has the second-lowest cost of living in urban areas, with a score of 79.7. You won’t find big skyscrapers or widespread public transportation systems in this small Texas town — instead, you’ll find a welcoming community with several parks and antique shops. Life in Harlingen is slow, quiet, and very affordable.

Decatur, Illinois

Decatur, Illinois, boasts the third-lowest cost of living of any urban environment in the U.S., with a score of 79.9. Decatur is surrounded by several major cities — specifically, Chicago, Indianapolis, and St. Louis — but it has a unique identity of its own. The residents of Decatur have access to great features found in larger cities, such as a thriving airport, zoo, and fine arts center, for much lower prices.

The 10 Least Expensive Cities in the U.S.

The Highest

Manhattan, New York

Of the 283 urban areas surveyed by C2ER in 2025, the priciest one is Manhattan, New York. The heart of New York City boasts a cost-of-living index of 238.9 — more than double the national average (100). With its luxury apartments, world-class restaurants and museums, and pricey schools, Manhattan tops the list of America’s most expensive cities. 

Two other New York City boroughs made the list of priciest urban areas: Brooklyn came in at No. 4 with a COLI of 163.9, while Queens, with a COLI of 153.8, was No. 7.

San Jose, California

San Jose, California, is the most expensive city anywhere in the state, beating out other major metropolitan centers including Los Angeles and San Francisco. San Jose’s score of 183.9 is due in part to the high prices associated with its location in Silicon Valley, home to some of the world’s biggest tech corporations. This leads to high housing costs, and you’ll likely need to invest in a car to get around, as public transportation is not as robust as it is in cities like San Francisco. If you aren’t working in the tech sector, you may want to avoid putting down roots in San Jose and look elsewhere for something more affordable.

Honolulu, Hawaii

The third most expensive U.S. city to live in is the Hawaiian capital of Honolulu, with a score of 183.8. This scenic island paradise can’t be beat in terms of natural beauty, but costs are high given its location in the middle of the Pacific. This geographic isolation means it costs more to import certain goods and materials, which in turn means higher prices for consumers. In fact, Honolulu ranks No. 1 in terms of the price of grocery items, with a score of 131.6. Real estate is also quite limited and expensive.

The 10 Most Expensive Cities in the U.S.

Featured Image Credit: © Destination Scenics/Alamy

This story has been updated for 2026.