Here Are the Downsides of Moving to a Cheaper City

Andrew Lisa August 1, 2023·5 min read

The pandemic triggered a migration out of big, expensive cities as people sought financial relief in lower-cost towns and suburbs. But according to the Washington Post, the movement was short-lived. Many of those migrants have since returned after discovering that the grass wasn’t as green as they had hoped on the less expensive side of the hill.

“Relocating to a cheaper city to find a lower cost of living may seem like a financially savvy decision at first glance,” said real estate investor Andrzej Lipski of Next Door Properties in Connecticut. “The dream of reduced expenses, lower taxes and a more affordable lifestyle can be appealing, especially for those looking to stretch their budgets. However, it’s essential to look beyond the surface benefits and consider the potential downsides of such a move.”

Here’s what you need to think about if the allure of low-cost living tempts you to move.

You Might Trade Economic Opportunity for Cheap Living

Most people expect to earn higher incomes in expensive cities or lower incomes where life costs less, but the economic tradeoff is more complex than that.

“Moving into a cheaper city invariably means transitioning to a place with less economic diversity, which, unfortunately, translates to limited opportunities for financial advancement,” said Pete Evering, business development manager at Utopia Property. “While the allure of reduced living expenses may be appealing, it’s crucial to recognize that economic diversity often fosters a range of industries, creating a thriving job market with numerous possibilities for career growth.”

He continued, “Unless your work can be done entirely remotely and requires no physical presence in a specific location, you’ll inevitably find yourself immersed in and dependent upon the economic ecosystem of the city you choose to call home. This reliance may impact your career choices and prospects, making it essential to carefully consider how the economic landscape of your new city aligns with your long-term goals.”