3 Ways Moving From a Big City to a Small Town Could Save You Thousands

Should you consider a change of pace?

Big city living is a dream for many people, and with good reason. If you love the bright lights, the culture, and interesting economic opportunities, living in a city can be the easiest way to access them. But it's often not the cheapest to live in a city. It could impact your quality of life to give up those big city dreams without getting anything in return, though. So here are a few ways making that move can work to your advantage -- financially and otherwise.

1. Lower housing costs

Let's start by considering the cost of buying or renting in cities versus small towns and suburban areas. The most expensive places to live in the United States are all located in busy metropolitan areas, like New York City, Honolulu, and San Francisco. According to Apartment List, the current median monthly rent on a two-bedroom apartment in New York City will run you $2,174. This data is for NYC as a whole, but note that some areas (such as in the borough of Manhattan) will cost much more. Apartment List also notes that the average two-bedroom rent for the United States as a whole in Nov. 2022 is $1,348. Quite a difference, and the difference in costs for buying a home are often just as striking.

If you've got your heart set on being close to a certain metro area, you could find some savings by choosing to live an hour or two away from that city. It's likely your housing costs will be a lot more affordable, and while you may be too far away to hit the city every day (or every week), you can plan for weekend trips. Planning ahead for a potentially expensive city jaunt can also be good for your budget. I'll also point out that while NYC may be out of reach for you financially, the Empire State boasts other excellent (and affordable) cities.

2. Less costly to start a business

Want to start a small business? Your start-up and ongoing costs will likely be lower in a small town or smaller city. The prices for commercial real estate are also lower in less-populated areas, meaning that if you have your heart set on opening a little coffee shop on Main Street, you will likely have an easier time of it.

And another advantage of starting a small business in a small town is that you can position yourself to really become a part of your community and use that local goodwill to build and sustain your clientele for the long haul. If you live in an area with a much higher population and a lot of transient visitors like tourists, it might be harder to gain this "beloved local business" clout.

3. Accessible (and more affordable) culture

One of the biggest draws of big cities is entertainment. New York City, for example, has world-class museums, Broadway shows, and all kinds of pop-up entertainment options like festivals and parades. While your average smaller city or town might not have as many (or as frequent) options for fun as a big city, many of them do have unique cultural opportunities that you can be a part of, usually for a lot less money. I'm a veteran of small-town history museums, and many of these institutions offer very inexpensive or even free admission. Compare that to the $20, $30, or more you might pay to tour a big city museum.

If you love live theater, you can also often find quirky little theater production companies working in small towns or cities, and while they may not have the budget to mount a revival of a major Broadway musical, you'll find inexpensive tickets for smaller plays and productions on offer. And if you want to act or volunteer, these companies will likely love to have you. When's the last time you walked into a Broadway theater, volunteered to paint sets or curate props, and were welcomed with open arms?

You're also likely to find hidden culinary gems in small towns, including local dishes that you just won't find anywhere else. In short, there is culture and fun to be found in small towns and cities, and you won't have to drain your bank account to enjoy it.

Want to make the move?

If I've convinced you that relocating might be right for you, definitely consider all the angles before taking the plunge. A big consideration is likely to be your employment situation. Remote work has made it possible for a lot of people to rethink where they live, but even if you don't work remotely, you might be able to find a great job with a company in a small town or city. Once you've identified a few areas that appeal to you, see who the biggest employers are and consider whether your skills might match an opportunity there. And speaking from experience, some areas just won't be a fit for you, personally or professionally. Look before you leap, but consider the savings you can reap by rethinking your ZIP code.