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That is because the population of Wheeling, WV has been in decline for the last 70-100 years, therefore supply>demand= low prices, even for larger houses. For a long time it also had abysmal air quality and other issues as well.
It's amazing that a city can be small, declining, have bad air quality and even a lower educational attainment level, but as long as it is white then it will still have big houses, big stores and look generally well-maintained.
Actually, that is not accurate. 4 of those listed are in the Washington DC metro area:
North Laurel, Maryland
Damascus, Maryland
Urbana, Maryland
Vienna, Virginia
Frankly, I'm not sure how these suburbs would be considered the "best" places to live over many other such places in this area. They are all nice enough though. I know folks who live in all of them.
Wealth, access to power, access to jobs, and prestige.
The geography of San Francisco and the Bay area has made it expensive since the Gold Rush.
Geography isn't the sole reason. Land use restrictions and overly tenant friendly laws (whose unintended consequences actually work against many tenants, especially newer and younger tenants) also play major roles.
While your wages won't stretch as much on the coasts, your house will probably have a major increase in value.
If you choose to, it's far easier to make good money renting a room in your home on the coasts than in areas where housing is cheap. There's a reason why airbnb is far more interested in Portland than Houston.
A lot of folks may want to buy a house in either a far away cul-de-sac or the inner area of a low-cost metro, but there's little reason for someone to move into a basement there. Either they'll want to be where the "action' is, or they can afford their own apartment.
Even Joel Kotkin realized this after noticing the residents of low-cost metros made little in miscellaneous income.
Rural areas of the Midwest and South are declining faster than ever as the low cost of living has few advantages with very few jobs available and overall costs not being that much higher in the larger metro areas. For better or worse nearly all the growth and new jobs are in the larger metro areas- so I do think that the more desirable locations will continue to get more expensive in terms of real estate. A good example is Hamilton County, Indiana just north of Indianapolis that includes Carmel and Fishers. Median household income is $80-85K, median housing prices are still under $300K and the percentage of the population with a four year degree is 55%. This area is growing at over 10% since 2010 while Chicagoland suburban counties are growing at less than 1/5 of that rate. The big reason? Very high property taxes in most of Chicagoland.
I don't think the "lower cost of living" in the South/Midwest is really all that much lower. In a more rural area or smaller town a house might sell for 100k give or take. But what about the jobs? Most of them are retail oriented AND part-time. There are some nice jobs but like others have said, the wait list is hundreds deep.
Assuming you get a good job, what happens when you lose it?
Assuming someone makes 10/hr in a smaller town as opposed to 20/hr in a city, gas isn't 50% cheaper. Food isn't 50% cheaper. Medical bills are the same. Student loan payments are the same. A plane ticket isn't cheaper.
The only way your standard of living increases by living in fly-over areas is housing ASSUMING you buy. Rent isn't all that much cheaper. In the mean time, while you are living in the south/midwest, hows your resume looking? How much money are you really saving?
The only way your standard of living increases by living in fly-over areas is housing ASSUMING you buy.
Rent isn't all that much cheaper. In the mean time, while you are living in the south/midwest, hows your resume looking?
How much money are you really saving?
Lets use an up to date calculator to evaluate the difference in cost to live two places. Cupertino Ca, where I raised a family, and Kansas City, Mo the center of your so called fly over country.
To live a comparable life style, earning $44,326 (the median income in the Kansas City MO), and you moved to Cupertino California you would have to earn $159,969.
Moderator cut: link removed, linking to competitor sites is not allowed
To me that means you would have to earn 3.6 times as much money in Cupertino. And that is not going to happen as the median income there is $53,941 according to City-Data. Especially when that county has an 18% poverty rate when adjusted to cost of living.
This is is one reason that more people are moving out of California going to other states than they are moving into California from other states. White and Black Population shrinking to the point that Caucasians are no longer the predominate race. They are moving out faster than they are moving in, and illegal immigrants are helping California having their largest percentage of any ethnic group being Hispanic. If it was not for illegal residents, California would have lost population for over 10 years, as people flee Ca, New York, New Jersey and many other places to go where there is opportunities they cannot get in the big cities.
Remember that California has the highest poverty rate in the whole nation, by a considerable amount.
It is amazing how many people in the big cities, are not aware that what they call fly over country is rapidly being the places that are seeing prosperity.
While your wages won't stretch as much on the coasts, your house will probably have a major increase in value.
If you choose to, it's far easier to make good money renting a room in your home on the coasts than in areas where housing is cheap. There's a reason why airbnb is far more interested in Portland than Houston.
A lot of folks may want to buy a house in either a far away cul-de-sac or the inner area of a low-cost metro, but there's little reason for someone to move into a basement there. Either they'll want to be where the "action' is, or they can afford their own apartment.
Even Joel Kotkin realized this after noticing the residents of low-cost metros made little in miscellaneous income.
There is something to be said to this- not that I believe that there is necessarily a guarantee of potential rental income or appreciation but certainly there is a vast difference in desirability that relates to that. While we live in a high cost area we also have potential huge gains in appreciation for our house of 18 years (either by selling or pulling out equity), and with neighbors renting one bedroom basement apartments for over $2000/month, as well as several vrbo/airbnb for $6000/month (whole house), there is some potential income there with our similarly situated house with our almost apartment-like suite of rooms in the lower level.
It's all in the mix of things we consider as we edge towards retirement several years hence. If you bought your house a good while ago as we did then that housing cost isn't crushing at all, property taxes are cheap (we could never afford our house today), we have good salaries for the region and if other elements of where you live are super enjoyable then it can be worth it. But I can equally see as you are still establishing your career, buying your first house that those lower cost areas (as long as they have something going on) with good job prospects are pretty much a no brainer.
I have a good point of comparison and can speak with authority on this subject.
My hometown is in deep south Texas in the border region - literally one of the cheapest areas of the country to live. I now live in Oregon which is the cheapest of the west coast states for CoL but pretty expensive by Texas standards.
It's true that houses are between 60 and 80% higher in Oregon. The house I own in Oregon is could be had in the Rio Grande Valley where I'm from for under 100k with a bigger lot and more house actually. My mom's house in San Antonio has beautiful landscaping, mine does not, and is 80% bigger than mine, although on a similarly sized lot, and our housing tax valuations are the same. She pays more than double the property tax I do (Texas has absurdly high property taxes, especially for decent school districts) - around $4K a year. My property taxes are about $1600 a year. I pay state income tax, she does not - more or less equalizing that tax burden.
Everything else is not as similarly discounted - gas, groceries, restaurants etc.. are indeed cheaper but not THAT much cheaper - 10-30% at most instead of 50-80% like housing. The dollar store is still the dollar store. Interestingly certain things are more expensive. Used cars in Texas are much more. Mechanics charge $100 an hour while I find $65-70 an hour to be the norm in OR. Home improvement contractors charge about the same. Health care is about the same.
If you live in Texas you will drive A LOT - I put 20-25K miles on my car a year. You pretty much have to buy a new car every 5-7 years at that usage rate; at $100 an hour fixing old cars doesn't pencil out well. I was shocked at how much less I drove and spent on car/transportation when I moved.
The main difference is jobs. There are decent jobs back home but they are fewer and farther between and pay less. Granted your money goes further but not THAT much further. Oh sure, you can move to one of the bigger Texas cities where there are more jobs. But to live in the good school district parts of, say, Austin, Dallas or Houston - then the housing costs approach what I pay. Granted you still get more house for the money - if enormous square footage is important to you. There is cheaper housing to be had..... if you're willing to drive to it.
Oh and there are also higher electric bills. During hot months, 6-7 months of the year at least my mom pays 3-400 a month to cool her 1850 sq ft. house in San Antonio. I paid close to $100 to cool a 750 sq ft. apartment in Austin and they were about to raise rates significantly when I moved. In my 1100 sq ft house in Oregon, I need neither a/c nor heat for Spring or Fall - so my electric is $40-60 for 6-8 months a year. In the worst winter months it cost me $165 to keep it warm, worst summer months $80 to keep it cool.
In my experience it all washes out about even. A lot depends on your lifestyle too, what you like to do on your off-time. Truly that and whether the area has the jobs YOU WANT are the more important factors over pure CoL comparisons.
I'll also agree that housing values and rental income potential are in your favor in higher CoL areas. My mom bought her house for $123K it is now worth around $138K. I bought my house for $93K, it is now worth $155K and rapidly rising. Its rental value is double my total mortgage/tax/ins payment.
Last edited by redguard57; 08-30-2015 at 02:07 AM..
I have a good point of comparison and can speak with authority on this subject.
My hometown is in deep south Texas in the border region - literally one of the cheapest areas of the country to live. I now live in Oregon which is the cheapest of the west coast states for CoL but pretty expensive by Texas standards.
It's true that houses are between 60 and 80% higher in Oregon. The house I own in Oregon is could be had in the Rio Grande Valley where I'm from for under 100k with a bigger lot and more house actually. My mom's house in San Antonio has beautiful landscaping, mine does not, and is 80% bigger than mine, although on a similarly sized lot, and our housing tax valuations are the same. She pays more than double the property tax I do (Texas has absurdly high property taxes, especially for decent school districts) - around $4K a year. My property taxes are about $1600 a year. I pay state income tax, she does not - more or less equalizing that tax burden.
Everything else is not as similarly discounted - gas, groceries, restaurants etc.. are indeed cheaper but not THAT much cheaper - 10-30% at most instead of 50-80% like housing. The dollar store is still the dollar store. Interestingly certain things are more expensive. Used cars in Texas are much more. Mechanics charge $100 an hour while I find $65-70 an hour to be the norm in OR. Home improvement contractors charge about the same. Health care is about the same.
If you live in Texas you will drive A LOT - I put 20-25K miles on my car a year. You pretty much have to buy a new car every 5-7 years at that usage rate; at $100 an hour fixing old cars doesn't pencil out well. I was shocked at how much less I drove and spent on car/transportation when I moved.
The main difference is jobs. There are decent jobs back home but they are fewer and farther between and pay less. Granted your money goes further but not THAT much further. Oh sure, you can move to one of the bigger Texas cities where there are more jobs. But to live in the good school district parts of, say, Austin, Dallas or Houston - then the housing costs approach what I pay. Granted you still get more house for the money - if enormous square footage is important to you. There is cheaper housing to be had..... if you're willing to drive to it.
Oh and there are also higher electric bills. During hot months, 6-7 months of the year at least my mom pays 3-400 a month to cool her 1850 sq ft. house in San Antonio. I paid close to $100 to cool a 750 sq ft. apartment in Austin and they were about to raise rates significantly when I moved. In my 1100 sq ft house in Oregon, I need neither a/c nor heat for Spring or Fall - so my electric is $40-60 for 6-8 months a year. In the worst winter months it cost me $165 to keep it warm, worst summer months $80 to keep it cool.
In my experience it all washes out about even. A lot depends on your lifestyle too, what you like to do on your off-time. Truly that and whether the area has the jobs YOU WANT are the more important factors over pure CoL comparisons.
I'll also agree that housing values and rental income potential are in your favor in higher CoL areas. My mom bought her house for $123K it is now worth around $138K. I bought my house for $93K, it is now worth $155K and rapidly rising. Its rental value is double my total mortgage/tax/ins payment.
I've spent my working life in Texas, Oregon, and Washington state and the differences between the cities in the states vary more than the differences between the large cities of those states. So really a good comparison would be Portland versus Seattle, versus Austin versus Houston and then the smaller cities in those states compared against each other.
In you are high income, it's better to be in Washington or Texas which have no state income tax. From my subjective experience and observations, Washington is the best state as far as income and wealth building with Texas a close 2nd as long as you are in Houston, Dallas or Austin areas. Oregon is good if you are low to mid income but not so great for promotions and opportunity and if you are high income.
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