Thinking about moving to a lower-cost-of-living (LCOL) area? Whether you’re looking to stretch your dollars further, enjoy a better quality of life, or simply escape the high costs of your current city, relocating to a more affordable place can be a game-changer. But to make the most of this move, careful planning is key. From understanding the true cost of living differences to navigating the logistics of the move, here’s what you need to know to ensure a smooth and successful transition.
Indeed, the transition requires careful planning and thoughtful consideration to ensure the move meets your expectations. Here’s a guide to help you navigate the essential factors when relocating to a more affordable area.
Things to Consider When Moving to a LCOL (Lower Cost of Living) Area
Before getting into what to consider, it’s important first to determine if the state you’re moving to or from is either a HCOL (high cost of living) or LCOL (low cost of living) state. Below is the list of states and whether they have high or low cost of living.
| State | Cost of Living |
| Alabama | Low Cost of Living |
| Alaska | High Cost of Living |
| Arizona | Low Cost of Living |
| Arkansas | Low Cost of Living |
| California | High Cost of Living |
| Colorado | High Cost of Living |
| Connecticut | High Cost of Living |
| Delaware | Low Cost of Living |
| Florida | High Cost of Living |
| Georgia | Low Cost of Living |
| Hawaii | High Cost of Living |
| Idaho | Low Cost of Living |
| Illinois | High Cost of Living |
| Indiana | Low Cost of Living |
| Iowa | Low Cost of Living |
| Kansas | Low Cost of Living |
| Kentucky | Low Cost of Living |
| Louisiana | Low Cost of Living |
| Maine | High Cost of Living |
| Maryland | High Cost of Living |
| Massachusetts | High Cost of Living |
| Michigan | Low Cost of Living |
| Minnesota | High Cost of Living |
| Mississippi | Low Cost of Living |
| Missouri | Low Cost of Living |
| Montana | Low Cost of Living |
| Nebraska | Low Cost of Living |
| Nevada | High Cost of Living |
| New Hampshire | High Cost of Living |
| New Jersey | High Cost of Living |
| New Mexico | Low Cost of Living |
| New York | High Cost of Living |
| North Carolina | Low Cost of Living |
| North Dakota | Low Cost of Living |
| Ohio | Low Cost of Living |
| Oklahoma | Low Cost of Living |
| Oregon | High Cost of Living |
| Pennsylvania | High Cost of Living |
| Rhode Island | High Cost of Living |
| South Carolina | Low Cost of Living |
| South Dakota | Low Cost of Living |
| Tennessee | Low Cost of Living |
| Texas | Low Cost of Living |
| Utah | High Cost of Living |
| Vermont | High Cost of Living |
| Virginia | High Cost of Living |
| Washington | High Cost of Living |
| West Virginia | Low Cost of Living |
| Wisconsin | Low Cost of Living |
| Wyoming | Low Cost of Living |
Here are the Main Things to Consider Before Making the Move:
1. Cost of Living Analysis
Imagine moving from San Francisco, California, where the cost of living is exceptionally high, to Tulsa, Oklahoma, a city known for its affordability. While housing costs in Tulsa might be a fraction of what you’re paying in San Francisco, you may find that certain goods, like fresh produce or imported items, could be slightly more expensive due to regional availability.
Before making the move, conducting a thorough cost of living analysis is crucial. While housing costs may be lower, other expenses, such as healthcare, groceries, and transportation, could vary significantly from what you’re accustomed to. Use online tools and cost-of-living calculators to compare the expenses between your current location and your new destination. This will give you a realistic picture of what to expect and help determine if the move is financially beneficial.
Conducting a cost of living analysis beforehand will help you budget accordingly and avoid any surprises.
2. Employment Opportunities
Suppose you work in marine transportation in Seattle, Washington, and you’re considering a move to Huntsville, Alabama, to take advantage of the lower cost of living. While Huntsville has a growing marine transportation sector, it’s important to research whether the job market is as robust as Seattle’s and if the salaries offered in Huntsville will align with your financial goals. This research could involve looking at local job boards, connecting with professionals in your field who are already in the area, or contacting companies you’re interested in working for to inquire about potential opportunities.
Further, while the cost of living might be lower, it’s important to consider the availability of employment opportunities in your new area. Research the local job market to ensure there are opportunities in your field. If you work remotely, verify that your employer supports relocation or that your internet connectivity and work environment will be up to standard in your new home.
3. Housing Market Considerations in a LCOL State
Suppose you’re moving from Boston, Massachusetts, where home prices and property taxes are significant, to Charlotte, North Carolina. In that case, you might be excited about buying a home for much less.
Lower-cost living areas (LCOL) often feature more affordable housing, but the market dynamics can differ significantly. Research the types of homes available, property taxes, and the long-term prospects for property value appreciation. Based on these factors, consider whether renting or buying makes more sense in your new location. If you plan to buy, consider closing costs, homeowners’ association fees, and potential renovations.
It’s also important to research whether the neighborhoods you’re interested in are experiencing growth or if they’re likely to stagnate. In some lower cost of living areas, the housing market may not appreciate as quickly as in more expensive cities, which could affect your long-term investment if you plan to sell the home in the future.
4. Quality of Life in Your New Area
A lower cost of living doesn’t always translate to a better quality of life. Imagine moving from New York City to a smaller town in Tennessee. While reducing housing costs and overall expenses may be appealing, consider the impact on your quality of life.
Suppose you’re accustomed to the vast array of cultural activities, restaurants, and public transportation in NYC. In that case, you may need to adjust to a slower pace of life and fewer amenities in a smaller town. Conversely, if you’re looking for more outdoor space, peace, and a close-knit community, this move could significantly enhance your quality of life.
That’s why it’s best to assess the amenities available in your prospective new area, such as healthcare facilities, schools, recreational opportunities, and community services. Consider how the local culture, climate, and lifestyle align with your preferences and how these factors impact your daily happiness.
5. Transportation and Commute
Moving to a more affordable area often means adjusting to different transportation dynamics.
Say you’re moving from Chicago, Illinois, where you’ve relied on an extensive public transit system, to a more rural part of Kentucky. Public transportation options in your new area may be limited or non-existent. As a result, you’ll need to consider the costs associated with owning and maintaining a car, including fuel, insurance, and maintenance, which could offset some of the savings from your lower cost of living. Additionally, consider how long your daily commute will be and whether the area has traffic issues that could affect your quality of life.
So, before making the plunge, consider whether public transportation is available and reliable or if you’ll need to rely more on a personal vehicle. If you’re relocating from a city with robust public transit to a more rural area, you may need to factor in the costs of owning and maintaining a car.
6. Social and Support Networks
If you’re moving from a vibrant, bustling community in Austin, Texas, to a small town in the Midwest, thinking about how you’ll adjust socially is essential. Suppose you’re used to having a wide circle of friends, frequent social events, and numerous opportunities to meet new people. In that case, the slower pace and smaller population in your new town might require you to put extra effort into building new connections. Joining local clubs, attending community events, or volunteering are great ways to establish your new social network.
Also, consider how you will maintain connections with friends and family and whether you’ll be able to build new relationships in your new community. If you’re moving to a more rural area, consider the availability of social activities, clubs, or groups that align with your interests.
7. Healthcare Access in LCOL Areas
Imagine you’re relocating from Miami, Florida, to a rural area in Pennsylvania. While Miami has a wide array of healthcare providers and specialists, a more rural location might have fewer options, potentially requiring longer travel times for certain types of care. If you or a family member have ongoing medical needs, this could be a significant factor in your decision-making process.
Healthcare access and quality can vary greatly depending on where you move. Research the availability of healthcare providers, hospitals, and specialists in the area. Consider the proximity of healthcare facilities to your new home and whether your current insurance plan will be accepted in your new location.
8. Moving Logistics
Suppose you’re moving from a city like Denver, Colorado, to a smaller town in the Appalachian region. In that case, you’ll need to consider the challenges of transporting your belongings, especially if your new home is more remote or mountainous. Weather conditions can play a big role—moving in winter might present challenges such as snow and ice, which could delay your move or damage your belongings.
The logistics of moving can be complex, especially when relocating to a distant or rural area. Finding professional movers who service rural areas might also be harder, so you’ll need to plan accordingly.
Plan your move well in advance, considering the best time of year to move, how you will transport your belongings, and the availability of moving services. Create a checklist to ensure smooth handling of all move aspects, from packing to utility setup.
9. Shipping Your Vehicle
Suppose you’re moving a significant distance to a lower-cost-of-living area. In that case, you may need to ship your car rather than drive it yourself—research reliable car shipping companies that offer services in your current location and your new home.
For example, if you’re moving from Boca Raton, Florida, to a small town in Texas, driving your car across several states might not be feasible, especially if you coordinate other aspects of the move. In this case, using a car shipping service can save time and reduce stress. Many companies offer open and enclosed transport options, catering to different needs. Understanding the costs, insurance coverage, and time frames can help ensure your vehicle arrives safely at your new home without hassle.
Obtaining a quote and understanding the costs and insurance coverage can save you time and stress, ensuring your vehicle arrives safely at your new destination.
10. Financial Planning and Budgeting
Moving to a lower-cost-of-living area is an excellent opportunity to revisit your financial goals and create a new budget.
Let’s say you’re moving from Washington, D.C., to a smaller city like Lexington, Kentucky, where housing and everyday expenses are significantly lower. This move could free up a substantial portion of your income, which you can then allocate toward other financial goals, such as paying off debt, building an emergency fund, or investing for the future.
You’ll also need to adjust your budget to reflect any changes in income if you’re switching jobs or if the cost savings from your move don’t cover unexpected expenses like higher utility costs or healthcare. Consider how the move will impact your income, expenses, and savings. If you anticipate lower housing costs, consider how you might reallocate those savings—toward retirement, debt reduction, or other financial priorities.
Final Thoughts on Moving to a Lower Cost of Living (LCOL) Area
Moving to a lower-cost-of-living area can be one of the most rewarding decisions you’ll ever make, offering you the chance to save money and improve your overall lifestyle. By carefully considering factors like employment opportunities, housing markets, and the logistics of the move, you can ensure a smooth transition to your new home.
By carefully considering these factors, you can make a well-informed decision about moving to a lower-cost-of-living area, ensuring that the transition will save you money and enhance your overall quality of life.
With the right planning and preparation, you’ll enjoy the financial benefits and find a place that truly fits your needs and aspirations. Embrace the opportunity and start planning your move to a more affordable, fulfilling future today!
