6 Considerations Before Moving to a More Affordable Area

Whether you're already a parent or contemplating having kids, moving to a more affordable place might be on your brain. You're not alone: Many families in the United States are relocating to places where their dollars stretch further and they can snag more space or a lower cost of living—which can help families combat inflation.¹

Before you start packing and renting a U-Haul, here are some financial factors to consider. That way, you can feel fully confident you're making the right choice for you and your family.

1. Differences in the Cost of Living

A cheaper place to live means more money in your pocket or a lower required salary. Naturally, you'll want to see what places equate to greater cost-of-living savings.

To see where your dollar might stretch, do your homework and see how much it costs to live in the varying locales you have your eye on. As you might expect, living in urban areas can be more pricey than in rural parts. Parents in urban areas are doling out 27% more on each child, with the greatest expenses being allocated toward housing and food.²

Want to know how two locales stack up against each other money-wise? Playing around with a cost of living calculator is an excellent place to start. This handy comparison tool can help you see how far your salary will go in different cities across the U.S. Plus, a cost of living calculator can offer insights on the differences in the average costs of everything from housing, transportation and healthcare to food and entertainment.

2. Quality of Life

When moving to a more affordable location, it's important to think about the quality of life—basically, how good and comfortable your life will be there. This affects things like healthcare and schools, helping ensure your family enjoys a better and more satisfying lifestyle.

First, think about what's most important for your family, like schools, childcare, local amenities and access to transportation. Are you a city slicker who loves restaurants, cafes, museums and art galleries? Or are parks, playgrounds and hiking trails your family's bottom line? Or maybe you just need to be closer to the grandparents to get more childcare support.

Once you've figured out your top priorities, compare the costs of living in different places and see what fits your budget. Check out the communities, schools, family amenities and hospitals in those areas, and talk to other families living there. You may even want to book a short-term stay to fully experience what it would be like to live in a new place. That way, you can make the best choice for your family's happiness and well-being.

3. Impact on Job Opportunities

If you anticipate that you may need to find a new job, think about how moving might affect your career opportunities. Some questions you and your partner might ask yourselves:

• • What are some prominent industries in places you're considering moving to?
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• • What are the trends in the workforce in the area? What industries are growing? Which ones are on the decline?
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• • What is the likelihood of finding a job in your line of work and current role?
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• • What do the average salaries look like?
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• • How much time would you ideally want to look for a new job?
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• • Can you interview and get hired before you move?

If you're moving to a part of the country with a lower cost of living, will your salary remain the same, or will it see a bump down? If it's the latter, look at how much you and your partner will need to earn to enjoy the same—if not a more enhanced—quality of life.

4. Buying a Home in a More Affordable Part of the Country

With housing costs on the rise, you may want to consider moving to a place where you can afford to buy a home. Look into the average costs of homes in places you'd like to move to. This can help you make a decision.

Start by asking: How much more house can you afford? You'll also want to look at the average cost of homeowner's insurance, what to expect to pay in property taxes and how much to save for home maintenance and repairs. How will those extra costs impact your budget?

Next, figure out how much you'd ideally like to have shored up for a down payment. That way, you can start squirreling away money for your home fund into a high yield savings account.

5. Saving for the Move

The cost of moving racks up quickly, from hiring movers to furnishing your new abode. The cost of a two- to three-bedroom move is around $1,250 for a local move to nearly $5,000 for a long-distance move.³ The final bill hinges on variables such as how far you're moving, the time of year and the amount of stuff you have.

You'll also want to tuck away cash to cover the cost of a deposit and rent on your new place, and a cushion in case you're in between jobs while looking for new work.

Start saving for your move as soon as you reasonably can. Setting up an automatic savings plan in a high yield savings account can help you stay on course. That way, the money will be set aside when you're ready to uproot.

6. Impact on Money Goals

Besides putting away money to move and potentially buy a home, look at how uprooting to a new locale will impact your other financial goals. Moving can have a domino effect on the other parts of your finances.

For instance, if you're moving to a more affordable area, you might be able to save more for your retirement goals or an emergency fund. Or perhaps you won't experience the pressure of feeling like a tired hamster running on a wheel to cover the costs of living in an expensive urban area. In turn, you might have more time to spend with your family or have extra funds to put toward a more lavish summer vacation each year.

Sync Financial Goals with Your Family Goals

Moving your family to a new place is a life-altering decision not to be made lightly. Doing your homework on the cost of living in various regions, getting to the root of the "why" of your move and starting a savings plan can help you get to the "how." That way, you can make the big move when the time is right, and your growing family can sprout fresh beginnings without as much financial stress.

 

Jackie Lam is an award-winning, L.A.-based money writer whose work has appeared in Salon.com, Refinery29, Time, Forbes, CNET, Business Insider and BuzzFeed, among others.

 

LEARN MORE: Is a 40-Year Mortgage Worth It?

 

Sources/references

1. Picchi, Aimee. Here are the states Americans are moving to — and the states they are ditching. CBS News. February 3, 2023.

2. Holten, Kendra. The True Cost of Raising a Child. Institute for Family Studies. July 17, 2023.

3. Moving Cost Calculator for Moving Estimates. Moving.com. August 20, 2023.