A major city in the Midwest of the USA has been named the cheapest place to live in the USA.
Fort Wayne, the second largest city in Indiana, earned the title due to its low housing costs, booming economy and reasonable cost of living.
According to the US News and World Report rankings, average rent and housing costs are well below the national average.
The result was that many households have sufficient income to live comfortably in the city.
Fort Wayne is far more affordable than nearby major cities like Chicago and Detroit, but still boasts a bustling downtown district and famous amenities like the Science Central Museum and the Children’s Zoo.
Fort Wayne, the second-largest city in Indiana, earned the title due to its low housing costs, booming economy and reasonable cost of living.
“Fort Wayne’s rents and real estate prices are lower than most major U.S. cities for several reasons,” Seamus Nally, CEO of TurboTenant, a property management software company, told U.S. News and World Report.
The main reason is the city’s population, he said.
“Although the city has grown in recent years and rents and real estate prices are definitely rising, Fort Wayne is far less densely populated than most major cities.”
“This means that demand for housing does not exceed supply nearly as much as in other cities, which helps keep prices more reasonable.”
The median home price in the city is $169,485, according to the outlet, and the average monthly rent cost is $1,078.
According to Zillow, both amounts are well below the national average of $362,481 and $2,069, respectively.
The city’s rental market benefits from a sufficient supply of housing relative to demand, says Doug Roller, founder of Fort Wayne-based Crossroads Financial Group.
There are a variety of rental properties available, which helps keep prices competitive, he said.
In addition, building houses in the city is generally cheaper, which means developers can build more homes at reasonable prices, Roller said.
While home insurance costs in Indiana are expected to rise about 7 percent this year, according to Insurify, other states like Louisiana are expected to see double-digit increases of 23 percent.
The projected increase is largely due to climate risks in the southern state.
According to U.S. News and World Report, the median household income in Fort Wayne is $71,507.
While this is slightly below the national average of $75,149, it is offset by the city’s lower cost of living and job opportunities.
On average, residents spend only 19.56 percent of their income on housing costs.
According to Roller, many families can easily afford a home in Fort Wayne without experiencing financial hardship.
“As a general rule, housing costs should not exceed 30 percent of gross income,” he said.
“Residents generally enjoy a comfortable standard of living and, after meeting basic needs, have sufficient disposable income for savings or leisure activities.”
The median home price in Fort Wayne is $169,485 and the average monthly rent cost is $1,078, which is well below the national average.
Fort Wayne is far more affordable than nearby major cities like Chicago and Detroit, but still has a vibrant city center
Many people moved to Fort Wayne during the pandemic to find a cheaper cost of living (Image: Rose Garden in Lakeside Park, Fort Wayne)
As the cost of living rose in nearby major cities like Chicago and Detroit during the pandemic, many people saw Fort Wayne as a more affordable option.
“Many people who thought they might never own a home in other parts of the country have moved here and discovered that they could not only buy a home, but a very nice home,” said Mary Sherer, realtor and owner of ERA Crossroads in Fort Wayne.
Fort Wayne initially struggled with a low housing supply, but the situation is improving, she said, and despite the increased prices, the market is still considered affordable.
“While we have been hampered by low inventory, local developers have stepped up their efforts and brought new homes to market in record numbers,” Sherer said.
Tax rates in Indiana are mid-range – the state has a flat income tax rate of 3.05 percent and a sales tax of 7 percent.
In return, residents can save money on car insurance.
According to recent data from the National Association of Insurance Commissioners, the average car insurance premium in Indiana is $905.61, compared to the national average of $1,258.10.
