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.
Discover More: Here’s How Much the Definition of Middle Class Has Changed in the South
Learn More: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
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.
Kirkikis / Getty Images
Population: 4,419
Average monthly mortgage: $839
Median household income: $35,392
Annual cost of living: $32,844
Annual savings left from median income: $2,548
Also See: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
Check Out: The Living Wage a Family of Four Needs in All 50 States
Ingo Dörenberg / Getty Images
Population: 2,727
Average monthly mortgage: $316
Median household income: $25,518
Annual cost of living: $25,079
Annual savings left from median income: $439
Explore More: Renting vs. Owning a Home — Which Will Be Cheaper in 2025?
rarrarorro / iStock.com
Population: 4,072
Average monthly mortgage: $680
Median household income: $32,278
Annual cost of living: $30,680
Annual savings left from median income: $1,598
dlewis33 / Getty Images
Population: 1,421
Average monthly mortgage: $297
Median household income: $26,985
Annual cost of living: $26,537
Annual savings left from median income: $448
omersukrugoksu / Getty Images/iStockphoto
Population: 3,965
Average monthly mortgage: $565
Median household income: $30,750
Annual cost of living: $29,477
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
Africa Studio / Shutterstock.com
Population: 10,107
Average monthly mortgage: $690
Median household income: $31,564
Annual cost of living: $30,214
Annual savings left from median income: $1,350
Darwin Brandis / iStock.com
Population: 7,368
Average monthly mortgage: $998
Median household income: $35,897
Annual cost of living: $35,739
Annual savings left from median income: $158
Veronaa / Getty Images/iStockphoto
Population: 3,289
Average monthly mortgage: $1,161
Median household income: $39,301
Annual cost of living: $38,108
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
AndreyKrav / Getty Images/iStockphoto
Population: 2,578
Average monthly mortgage: $807
Median household income: $32,129
Annual cost of living: $31 737
Annual savings left from median income: $392
Kruck20 / Getty Images/iStockphoto
Population: 2,661
Average monthly mortgage: $929
Median household income: $36,664
Annual cost of living: $36,595
Annual savings left from median income: $69
Population: 3,161
Average monthly mortgage: $574
Median household income: $28,766
Annual cost of living: $28,210
Annual savings left from median income: $566
Read Next: 20 Best Cities Where You Can Buy a House for Under $100K
Population: 3,294
Average monthly mortgage: $695
Median household income: $32,577
Annual cost of living: $31,795
Annual savings left from median income: $782
Population: 6,815
Average monthly mortgage: $1,022
Median household income: $36,346
Annual cost of living: $35,074
Annual savings left from median income: $1,272
ronniechua / Getty Images/iStockphoto
Population: 3,483
Average monthly mortgage: $697
Median household income: $33,107
Annual cost of living: $30,949
Annual savings left from median income: $2,158
Sean Pavone / Shutterstock.com
Population: 4,292
Average monthly mortgage: $412
Median household income: $29,046
Annual cost of living: $28,705
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.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 15 Small Southern Cities That Could Become Unaffordable in the Next 5 Years
