Are You Living in One of the Best States To Live In? (Most People Aren’t)

As housing prices in San Francisco ($1.27M median), Los Angeles ($951K), and New York City ($797K) climb out of reach, many families are relocating to states like Minnesota, Utah, Texas, Colorado, and Wisconsin. With lower home prices, reduced taxes, and family-friendly amenities, these states allow middle-income households to stretch paychecks further while still accessing good schools, jobs, and safer communities.

• Housing costs: A home in Nebraska ($277K) or Minnesota ($352K) costs a fraction of one in Manhattan ($1.16M) or San Francisco ($1.27M).
• Taxes: Families save thousands by moving to states with lower or no income tax, like Texas or New Hampshire, compared to New York and California.
• Cost of living: Daily expenses (childcare, healthcare, groceries) can be 20–40% lower in smaller states, often reducing total living costs by one-third.
• Job opportunities: States like Colorado (tech, startups), Texas (energy, healthcare, finance), and Virginia (defense, government) offer strong economies without coastal price tags.
• Lifestyle gains: Families trade cramped apartments for backyards, safer neighborhoods, and stronger community ties, with outdoor recreation often minutes away.

If you live in New York City, Los Angeles, or San Francisco, chances are you’ve felt the squeeze of rising housing prices, higher taxes, and crowded living conditions. In recent years, more people have decided the trade-offs of big city life are no longer worth it.

The reasons are clear: homeownership feels out of reach, rent swallows half a paycheck, and raising kids in a cramped apartment with limited schools can be stressful. For many, the solution is moving to a smaller state where homes are affordable, schools are stronger, and money stretches further.

The Cost Gap: Big Cities vs. Smaller States

Housing Prices and Rent

Housing is the biggest factor driving people out of expensive cities. According to Zillow, the median home price in:

Budget-Friendly Housing Markets

Taxes and Daily Living

Beyond housing, daily expenses add up. Both California and New York levy some of the highest state income taxes in the country, while sales taxes increase the cost of everything from groceries to clothes.

By contrast:

• Texas has no state income tax.

• New Hampshire has no income or sales tax.

• Colorado and Utah keep rates modest compared to coastal states.

Childcare, healthcare, gas, and even groceries are often 20–40% cheaper in smaller states. Families that move frequently find their overall cost of living falls by a third or more.

Best States for Families Leaving Expensive Cities

For families looking to trade cramped apartments for backyards and better schools, several states stand out:

• Minnesota: Consistently ranked high for education and safety. Housing costs are manageable, and Minneapolis–St. Paul offers cultural amenities without the same price tag as LA or NYC.

• Utah: Known for family-friendly culture, a strong job market, and access to national parks. Growing suburbs around Salt Lake City offer newer housing and good schools.

• Wisconsin: Combines affordable homes, community-focused towns, and good public schools. Families often find safer neighborhoods and a slower pace of life.

These states also tend to have lower crime rates and more space for outdoor recreation, making them appealing for parents worried about raising kids in crowded cities.

Best States for Job Opportunities Without the City Price Tag

One of the biggest fears about leaving New York, San Francisco, or Los Angeles is giving up career opportunities. But several states are now economic hotspots:

• Colorado: Denver and Boulder attract tech and startup jobs, while offering a lower cost of living than Silicon Valley.

• Texas: Austin has become a magnet for tech and creative industries, while Dallas and Houston provide opportunities in finance, healthcare, and energy.

• Virginia: Northern Virginia, near Washington, D.C., has strong employment in defense, government, and technology.

Many employers also support remote work, meaning people can keep big-city salaries while living in smaller, more affordable states.

Lifestyle Gains: Outdoors, Safety, and Community

Life outside the nation’s largest metros brings certain trade-offs. While residents may give up constant nightlife or quick access to Broadway shows, they often gain far more in quality of life. Families find more space at home, often with backyards and garages, and enjoy lower crime rates than in many big cities.

Outdoor recreation is another advantage, with hiking trails, lakes, and ski resorts often located just a short drive away. Smaller towns foster closer ties between neighbors and schools, creating a stronger sense of community. For parents, this means safer play areas and more balance between work and family, while couples and singles often trade urban nightlife for outdoor adventures and deeper community connections.

How To Decide If a Move Makes Sense

A move is a big decision, and what works for one family may not for another. Before packing up, ask:

• Will my income stretch further after factoring in housing, taxes, and healthcare?

• Are there jobs in my field where I’m considering moving, or can I work remotely?

• Do schools, hospitals, and safety levels meet my expectations?

• Am I ready for a slower pace of life with fewer big-city amenities?

Some movers choose to rent first in their new state to test the lifestyle before committing to buying a home.

Takeaway

If you’re tired of the grind in New York, Los Angeles, or San Francisco, you’re not alone. Thousands are leaving each year for states where homes are affordable, jobs are plentiful, and quality of life is higher.

No state is perfect, but places like Minnesota, Utah, Colorado, Texas, and Wisconsin prove that you don’t need to sacrifice opportunity to gain affordability, space, and community.

Related: Explore more financial guidance in our Personal Finance Hub, covering budgeting, saving, banking, insurance, and everyday money strategies.