Where you live plays an important role in your finances. It affects your job opportunities, unless you’re a remote worker. It also impacts your cost of living. Some parts of the country are on the expensive side. Others are more affordable, making it easier to invest and build up your savings account.
The Northeastern United States is one of those expensive areas. Many of its major cities are pricey, with high rent and mortgage payments. If you live in this region, or you’re considering a move there, it may help to know the most affordable options.
The 10 most affordable cities in the Northeast
The affordability rankings below are based on each city’s cost of living compared to its median household income. It’s not a ranking of the cheapest Northeastern cities with the lowest typical expenses. It’s the cities where residents have the most money left over after paying their bills, on average.
| Affordability Ranking | City | Cost-of-Living Estimate | Median Household Income |
|---|---|---|---|
| 1 | Morristown, New Jersey | $77,272 | $113,926 |
| 2 | Pittsburgh, Pennsylvania | $71,727 | $60,187 |
| 3 | Rome, New York | $70,632 | $56,901 |
| 4 | Philadelphia, Pennsylvania | $74,134 | $57,537 |
| 5 | Albany, New York | $75,448 | $54,736 |
| 6 | Scranton, Pennsylvania | $67,640 | $48,776 |
| 7 | Utica, New York | $69,173 | $48,212 |
| 8 | Allentown, Pennsylvania | $75,375 | $52,449 |
| 9 | Wilkes-Barre, Pennsylvania | $66,984 | $46,597 |
| 10 | New Haven, Connecticut | $79,461 | $54,305 |
Source: Census Bureau (2024), Council for Economic and Community Research (2024), Motley Fool Ascent calculations.
As you can see, the Northeastern’s reputation for being expensive is well-earned. Only one city on the list has a cost-of-living estimate lower than its median household income. For residents in most cities, it’s a struggle to pay the bills and still be able to save money.
What can you do if you live in an expensive area?
I used to live in Los Angeles when I wasn’t earning much money, so I know how hard it is to make that work. Opposite side of the country, same sky-high cost of living. Practically all your income gets eaten up by bills.
Moving somewhere cheaper is one possible solution, but it’s often not a realistic option. If you have a job and a life in your current city, you probably don’t want to leave it. Here are a few options that don’t involve such a drastic life change.
See if you can find cheaper housing
Even if you don’t want to move to a new city, you could consider searching for a new home. Housing is the biggest monthly expense for most Americans. That also makes it one of the best places to cut back. See if there are more affordable neighborhoods, or consider downsizing to a smaller home.
Look for ways to raise your income
This is challenging, but it’s arguably the best way to improve your financial situation. If you can get a promotion at work, find a higher-paying job, or start a small business to bring in more money, it will be much easier to pay your bills and save money regularly.
Cut back on large expenses
Review your bank statements and credit card bills for the last few months to see where you’re spending the most. For many households, food and car payments are the major monthly expenses (along with housing). Subscriptions and auto insurance are two other areas where it’s easy to overspend.
Use a cash back credit card
If money’s tight, it makes sense to use a cash back card everywhere you can. Some of the best cash back cards earn either 2% on all types purchases or up to 6% in bonus categories. While you won’t get rich from cash back, every little bit helps. Just make sure you pay your credit card bill in full every month to avoid interest charges.
Moving to a more affordable city could be the way to go if you’re able to work remotely, or if you have a job opportunity there. But there are also plenty of ways to improve your finances where you currently live, including trimming your expenses, increasing your income, and earning cash back on your bills.
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