A young Connecticut couple was already treading water financially after moving into a $1,400 a month apartment in 2023. As their rent and utility bills kept rising, however, one shock expense left them living in their car.
One half of the couple — a 21-year-old anonymous behavior technician — told Realtor.com that she and her boyfriend, a pool maintenance worker, faced a $580 rent increase six months after moving into their Waterbury apartment. Combined with the elevated cost of groceries, utilities and local taxes, she said the pair’s financial situation was already tenuous.
“Our utility bill kept going up,” she added. “One month, they charged us an extra $800. That was it.”
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The surging bills forced them out of their home and into their car, where they “did everything [they] could so nobody would know.”
Still, realizing that the auto accommodations couldn’t last, the woman started an online search for a place where their money could go further.
After narrowing it down, the couple eventually settled on one specific locale that topped lists for affordability while also allowing them a chance to start their lives over on their own terms.
The couple cut their cost of living — and finally started building wealth
The couple’s affordability search eventually led them to pursuing a fresh financial start in Rockford, Illinois.
According to Payscale.com, the overall cost of living in Rockford — including housing, utilities and groceries — is 9% lower than the national average. Meanwhile, Waterbury is only 1% lower, with the cost of groceries up 3% over the national average and utilities a whopping 35% higher. And Zillow reports the average rental price in Rockford is $300 lower than Waterbury.
The couple first moved into an Airbnb that charged them $700 monthly before renting a one bedroom apartment with utilities included for $1,200. The woman added that they both also scored new jobs within two weeks and have since supercharged their savings.
“When we were living in Connecticut, we always had zero dollars in our bank accounts,” she said. “Now, we both have 401(k)s and more than $10,000 in savings.”
The couple’s story, meanwhile, highlights the concept of geoarbitrage — moving to a more affordable locale while retaining a salary from a more costly one in order to save money.
The trend picked up during the COVID-19 pandemic, when remote work gave people an opportunity to relocate out of expensive cities and boost savings. But now, the idea of an affordability move may make broad economic sense.
A 2026 Urban Institute affordability tracker found that 49% of U.S. families “don’t have the resources to cover essential expenses to live securely in their community,” while rising costs of everything from health care to gas, utilities and child care have only exacerbated the problem.
“As housing prices continue to rise, more people are prioritizing places where their money goes further,” Niche economist Allison Shrivastava told Forbes. She added that more walkable locales are popular because they “offer a lower cost of living, a stronger sense of community and convenient access to amenities without long commutes.”
But knowing where to move — and looking beyond housing prices — is key to ensuring that geoarbitrage doesn’t turn into self-sabotage.
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Moving for a lower cost of living? Look beyond home prices and do the math
Online lists abound showing the “most affordable” cities and states to move to — with the top picks often varying between them.
And for some, like retirees with paid off homes, selling in a pricey market and downsizing to a more affordable one can instantly unlock thousands in savings.
Consider, however, those lured to locales with low housing costs only to find themselves paying for it elsewhere — like the “halfbackers” who moved to Florida for the lack of income taxes and other dues but left after discovering property taxes, home insurance and extreme weather all drove their cost of living up.
The key to deciding a locale’s affordability — whatever that means to you — is to consider a combination of factors including housing costs, taxes and the overall cost of living and how your finances will fit into that framework.
You may also be required to take a pay cut if you have to find local work rather than retaining a remote position, while others warn that health and child care costs can vary from state to state, as can utilities.
And if you’re moving from an urban area with public transport to a more rural locale that requires a car, vehicle ownership could cost more than $11,000 annually according to AAA.
If you decide to move to a more affordable city or state, experts recommend setting a financial goal first — be it simply living a more affordable lifestyle or specifically paying off debt or saving for retirement.
Once you identify that, do your homework on the overall cost of living in potential “affordable” locales, as well as the lifestyle benefits, job opportunities and housing prices. And consider your credit and what it will allow you to buy or rent, while also saving extra cash to absorb unexpected expenses.
The Connecticut couple, for example, tested the waters in an Airbnb before committing to a rental — a strategy that allowed them to dip their toes in the market before planting them firmly.
In the end, geoarbitrage isn’t for everyone. But, if you run the numbers and they add up, moving to a more affordable locale could provide the financial reset you’ve been searching for.
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Mike Crisolago is a Sr. Staff Reporter at Moneywise with nearly 20 years of experience working as a journalist, editor, content strategist and podcast host. He specializes in personal finance writing related to the 50-plus demographic and retirement, as well as politics and lifestyle content.
