California dreaming isn’t always something to sing about. When Julie Taylor lived in Los Angeles with her family, she paid $4,012 for her monthly mortgage. She was also living paycheck-to-paycheck with costs to cover her student loans, trips home and credit card interest on top of her housing.
All that changed when she and her husband moved to Missouri. Based on what the Taylors told the U.S. Sun, they cut their expenses to around ⅓ of what they were paying in California — even as their house size increased by around 900 square feet.
In the three years since relocating, the Taylors saved around $140,000 or $46,000 per year thanks to a lower cost of living. The money allowed them to put their son through college, pay off their student debt and travel more.
Is this the walk on a winter’s day that can work for everyone? Potentially. Here's what you need to know to leave today.
The Show-Me State
For Taylor and her husband, the move to Missouri worked out great.
“It’s just taken a lot of the stress out of our lives, after living paycheck to paycheck for so long,” she told The U.S. Sun, adding that although she missed the food and culture of L.A. and New York — where she lived before — she’s able to have time for reading, meditating and walking her dog in the morning.
Taylor is far from alone in a desire to save money by abandoning city life. According to data from the Economic Innovation Group, 812,000 people left big cities for urban and exurban areas between July 1, 2020, and July 1, 2021.
Cities continued to hemorrhage residents well into 2022, although at a slower rate at around 70,000 residents. However, international migration helped cities maintain their population level.
The search for an affordable cost of living is the big reason for people moving out of the cities, with more than 60% of people responding to a Harris poll citing lower costs or cheaper housing as the impetus to move. The Taylors certainly were able to find that, as their impressive success in savings shows.
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Is relocating a good solution?
Moving to save money can certainly make sense when it's feasible, and a growing number of people have found that it's an option.
The COVID-19 pandemic shifted employees into the sphere of remote work, which helped make migration possible. Around 16% of companies are fully remote and 24% of workers have chosen to work remotely in the post-pandemic era.
Those who make the change get a big advantage. For example, the average cost of a Missouri home is just $245,230, according to Zillow, while California's average is higher at $773,263.
It's not just housing, either. Missouri had the sixth lowest overall cost of living in the United States in 2024, while [California])(https://meric.mo.gov/data/cost-living-data-series) was ranked 50th with only Massachusetts and Hawaii costing more. You also need just $47,771 per year in income to make a living wage in Missouri compared with $80,013 in California.
You will have to undergo a major lifestyle change, though. But, if you're tired of the city’s fast pace, it isn't a bad thing.
Ultimately, if you can move without taking an income cut, spend less and accomplish important financial goals, a new hometown may be the right financial move for you. If you can save over $100,00 like the Taylors, then it’s proof positive you made the right choice.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
