During the 2024 presidential election, a central issue for many voters (and between the candidates) was the growing concern of cost of living in America.
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Also of concern has been the rather steep mortgage prices across the country amid a struggling housing market. Costs in dense urban centers have become so high that some residents of famously pricey coastal cities such as Los Angeles and New York have been fleeing for more affordable small towns and cities.
However, high cost of living isn’t unique to the big cities or the coasts. During a recent study, GOBankingRates found a number of smaller Southern cities with ballooning mortgage rates and rising cost of living, so much so that they may no longer be affordable in the next five years. In fact, a number of these small cities are barely affordable as is.
Check out which areas to worry about before you plan a move to the South — or, if you live in the region, see which towns in your state are getting too expensive.
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Population: 4,419
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Average monthly mortgage: $839
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Median household income: $35,392
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Annual cost of living: $32,844
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Annual savings left from median income: $2,548
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Population: 2,727
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Average monthly mortgage: $316
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Median household income: $25,518
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Annual cost of living: $25,079
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Annual savings left from median income: $439
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Population: 4,072
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Average monthly mortgage: $680
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Median household income: $32,278
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Annual cost of living: $30,680
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Annual savings left from median income: $1,598
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Population: 1,421
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Average monthly mortgage: $297
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Median household income: $26,985
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Annual cost of living: $26,537
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Annual savings left from median income: $448
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Population: 3,965
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Average monthly mortgage: $565
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Median household income: $30,750
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Annual cost of living: $29,477
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Annual savings left from median income: $1,273
Find Out: Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck
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Population: 10,107
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Average monthly mortgage: $690
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Median household income: $31,564
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Annual cost of living: $30,214
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Annual savings left from median income: $1,350
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Population: 7,368
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Average monthly mortgage: $998
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Median household income: $35,897
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Annual cost of living: $35,739
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Annual savings left from median income: $158
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Population: 3,289
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Average monthly mortgage: $1,161
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Median household income: $39,301
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Annual cost of living: $38,108
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Annual savings left from median income: $1,193
Read More: 10 Things the Middle Class Won’t Be Able To Afford in Less Than a Decade
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Population: 2,578
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Average monthly mortgage: $807
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Median household income: $32,129
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Annual cost of living: $31 737
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Annual savings left from median income: $392
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Population: 2,661
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Average monthly mortgage: $929
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Median household income: $36,664
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Annual cost of living: $36,595
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Annual savings left from median income: $69
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Population: 3,161
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Average monthly mortgage: $574
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Median household income: $28,766
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Annual cost of living: $28,210
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Annual savings left from median income: $566
Read Next: 20 Best Cities Where You Can Buy a House for Under $100K
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Population: 3,294
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Average monthly mortgage: $695
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Median household income: $32,577
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Annual cost of living: $31,795
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Annual savings left from median income: $782
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Population: 6,815
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Average monthly mortgage: $1,022
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Median household income: $36,346
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Annual cost of living: $35,074
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Annual savings left from median income: $1,272
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Population: 3,483
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Average monthly mortgage: $697
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Median household income: $33,107
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Annual cost of living: $30,949
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Annual savings left from median income: $2,158
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Population: 4,292
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Average monthly mortgage: $412
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Median household income: $29,046
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Annual cost of living: $28,705
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Annual savings left from median income: $341
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.
Methodology: For this study, GOBankingRates analyzed Southern states to find places that could soon be unaffordable. GOBankingRates found cities in the Southern United States using the U.S. Census American Community Survey. For each city, GOBankingRates found total population, total households, household median income, population ages 65 and over, all sourced from the American Community Survey; the cost-of-living indexes, sourced from Sperling’s BestPlaces; the average single-family home value, sourced from Zillow Home Value Index; and the livability index, sourced from AreaVibes. Using the average home value, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate (from the Federal Reserve Economic Data), the average mortgage cost was calculated for each city. Using the cost-of-living indexes and the national average expenditure costs for all residents (from the Bureau of Labor Statistics Consumer Expenditure Survey), the average expenditure costs were calculated. The expenditure and mortgage costs were used to calculate the average cost of living. The statewide home values and mortgages were calculated using the Zillow Home Value Index and compared to each city. The places with a mortgage cheaper than the statewide average mortgages were kept for this study as housing costs often represent the largest cost for a household and an increase to housing costs are a major shift in cost of living. The cities with a median household income above the average cost of living but no more than $10,000 were kept for this study as they represent places that are still currently affordable. The leftover savings from median household income were scored and weighted at 1.50. The difference from home mortgages was scored and weighted at 1.00. Both scores were summed and sorted to show places that are still barely affordable but may not be soon due to increased costs. All data was collected on and is up to date as of Jan. 9, 2025.
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This article originally appeared on GOBankingRates.com: 15 Small Southern Cities That Could Become Unaffordable in the Next 5 Years
