20 Southern Cities That Could Become Unaffordable by 2025
People are moving to the South in droves. According to research from HireAHelper, across all 25.6 million Americans who moved in 2023, rural states with lower costs of living brought in the most residents. The three states that saw the greatest influx were all in the South: Oklahoma, South Carolina and Tennessee.
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Thanks to that crucial lower cost-of-living aspect, the South is picking up interest among all sorts of people, including retirees. But will these hot spots remain affordable?
Unfortunately, it doesn’t look like they will. In a new study, GOBankingRates analyzed Southern states to find places that could be unaffordable by 2025.
These are the top 20 Southern cities that our research found to be still only barely affordable — and possibly even less so by next year.
Here are seven things the middle class won’t be able to afford in the next five years.
Glasgow, Kentucky
Household median income: $44,125
Average value of a single family home: $195,953
Total cost of living annually: $34,174
Leftover savings after median income: $9,951
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West Monroe, Louisiana
Household median income: $47,129
Average value of a single family home: $192,336
Total cost of living annually: $37,022
Leftover savings after median income: $10,107
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Egypt Lake-Leto, Florida
Household median income: $51,136
Average value of a single family home: $380,300
Total cost of living annually: $50,872
Leftover savings after median income: $264
Conyers, Georgia
Household median income: $53,500
Average value of a single family home: $316,868
Total cost of living annually: $46,490
Leftover savings after median income: $7,010
Savannah, Georgia
Household median income: $54,748
Average value of a single family home: $325,329
Total cost of living annually: $44,928
Leftover savings after median income: $9,820
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Tamarac, Florida
Household median income: $59,140
Average value of a single family home: $397,524
Total cost of living annually: $53,414
Leftover savings after median income: $5,726
Columbus, Mississippi
Household median income: $38,954
Average value of a single family home: $161,818
Total cost of living annually: $32,424
Leftover savings after median income: $6,530
Newport, Kentucky
Household median income: $50,278
Average value of a single family home: $209,742
Total cost of living annually: $37,372
Leftover savings after median income: $12,906
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Russellville, Arkansas
Household median income: $43,669
Average value of a single family home: $200,806
Total cost of living annually: $33,944
Leftover savings after median income: $9,725
Marrero, Louisiana
Household median income: $47,757
Average value of a single family home: $198,021
Total cost of living annually: $38,366
Leftover savings after median income: $9,391
Tuscaloosa, Alabama
Household median income: $47,257
Average value of a single family home: $221,515
Total cost of living annually: $38,041
Leftover savings after median income: $9,216
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Searcy, Arkansas
Household median income: $45,588
Average value of a single family home: $208,056
Total cost of living annually: $34,590
Leftover savings after median income: $10,998
College Park, Georgia
Household median income: $47,706
Average value of a single family home: $312,679
Total cost of living annually: $47,130
Leftover savings after median income: $576
Conway, South Carolina
Household median income: $48,161
Average value of a single family home: $291,588
Total cost of living annually: $42,638
Leftover savings after median income: $5,523
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Clearwater, Florida
Household median income: $59,358
Average value of a single family home: $414,401
Total cost of living annually: $52,633
Leftover savings after median income: $6,725
Weatherford, Oklahoma
Household median income: $47,851
Average value of a single family home: $212,597
Total cost of living annually: $38,111
Leftover savings after median income: $9,740
Fort Myers, Florida
Household median income: $57,403
Average value of a single family home: $414,101
Total cost of living annually: $52,315
Leftover savings after median income: $5,088
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Crossville, Tennessee
Household median income: $44,375
Average value of a single family home: $308,635
Total cost of living annually: $43,648
Leftover savings after median income: $727
Stephenville, Texas
Household median income: $48,088
Average value of a single family home: $305,617
Total cost of living annually: $42,554
Leftover savings after median income: $5,534
Harvey, Louisiana
Household median income: $41,994
Average value of a single family home: $197,959
Total cost of living annually: $38,760
Leftover savings after median income: $3,234
Methodology: For this study, GOBankingRates analyzed Southern states to find places that could be unaffordable by 2025. First, GOBankingRates found cities in the Southern United States using the U.S. Census American Community Survey. For each city, total population, total households, household median income and population age 65 and over were all sourced from the U.S. Census American Community Survey; the cost of living indexes were sourced from Sperling’s BestPlaces; the average single-family home value was sourced from Zillow Home Value Index, and the livability index was sourced from AreaVibes. Using the average home value, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate as sourced 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, as sourced 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 mortgage were calculated using the Zillow Home Value Index and compared to each city. The places with mortgages 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 median household incomes above the average cost of living 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 1.00. 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 Sept. 5, 2024.
Photos are for representational purposes only.
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This article originally appeared on GOBankingRates.com: 20 Southern Cities That Could Become Unaffordable by 2025
