The 10 Best Places To Live While Saving For A Home

There a several costs that come with purchasing real estate. From the down payment and closing costs to moving expenses and new home needs, future homeowners can expect to spend at least a few thousand dollars out of pocket.

Before buying a home, many people plan to save money first. In fact, according to a Rocket Homes^SM study on millennial home buyers, we found that saving for a home was a goal across all generations, including 30% of Gen Zers, 33% of meillennials and 23% of Generation Xers.

One way people save for a home is by making lifestyle changes that save them money. That may mean getting a new job that pays more or moving to an area where cost of living, including rent, is lower. To help future home buyers with their savings goal, Rocket Homes teamed up with BestPlaces.net to find some of the best places to live while saving for a home.

Finding The Best Places To Save For A Home

The researchers at BestPlaces.net used the following metrics to determine the best places to live while saving for a home.

• Average rent
• Median household income
• Cost of living
• Unemployment rate 

To provide a wider range of areas, we removed any other lower ranking cities within a 150-mile radius of a higher-ranking city in the same state. We found that small towns, many in the Midwest, provide affordability and job opportunities without skimping on amenities.

1. Fond Du Lac, Wisconsin

• Metro population: 103,403
• Average rent: $859
• Cost of living: 20.1% below U.S. average

With an average monthly rent of around $859, Fond du Lac has lower rent than 95% of the country. And for what the city offers, that can be considered a steal. Not only does Fond du Lac rank in the top 5% of the country for its low crime, but the lakeside city has a ton of water recreation offerings like paddle boarding, boating and fishing on Wisconsin’s largest inland lake, Lake Winnebago. City dwellers will also enjoy the area’s vibrant downtown featuring an arts and entertainment district.

2. Elkhart, Indiana

• Metro population: 206,341
• Average rent: $1,069
• Cost of living: 17.9% below U.S. average

With one of the lowest unemployment rates in the country, Elkhart may have more opportunity for residents to earn as they save for a home. The city also ranks in the top 1% of the country for low debt-to-income ratios of locals. So, if Elkhart residents have any influence on renters living in the area, those future home buyers may eventually find themselves in better financial standing when it comes time to purchase a house.

3. Sioux City, Iowa

• Metro population: 169,878
• Average rent: $1,127
• Cost of living: 21.3% below U.S. average 

Because Sioux City’s cost of living is lower than 90% of the country, residents may find more room in their budget for saving for a home without having to sacrifice on things like entertainment or dining out. And for even more fun that’s little-to-no cost, the city offers 70 miles of recreation trails, a dance pavilion, nature center and local farmers market that’s open 6 months out of the year.

4. Columbus, Indiana

• Metro population: 83,779
• Average rent: $1,374
• Cost of living: 17.4% below U.S. average

When director Kogonada stumbled upon the city of Columbus, he was so enchanted by its modern architecture, he just had to make a movie about it. Even actor John Cho was fascinated, calling the city “a kind of wondrous place. A bit of an Emerald city.” With more than 75 breathtaking sites designed by world renown architects, Columbus also provides inspiration to future home buyers dreaming of their own homes.

5. Ames, Iowa

• Metro population: 97,117
• Average rent: $1,147
• Cost of living: 15.6% below U.S. average

Home to Iowa State University, Ames always has something going on. From college football games and Broadway musicals to art exhibits, farmers markets and holiday celebrations. With a low cost of living and a crime rate that’s lower than almost 90% of the country, Ames is a place one can enjoy the splendors of the community while feeling more physically and financially secure.

6. Fargo, North Dakota

• Metro population: 246,145
• Average rent: $1,034
• Cost of living: 11.9% below U.S. average

In Fargo, the median household income is $65,995 – higher than 75% of the country. While a boost in income may be expected, renters may also experience the unexpected – or what the city calls “North of Normal.” That includes a bevy of locally owned restaurants, a lively craft-coffee scene, a pioneer village called Bonanzaville, USA and the infamous woodchipper from that scene in the 1996 cult classic “Fargo.”

7. Evansville, Indiana

• Metro population: 315,086
• Average rent: $925
• Cost of living: 19.1% below U.S. average

It can be hard to save for a home when most of one’s income goes toward rent. In Evansville, the average rent is under $1,000 – lower than 92% of the country. Housing isn’t the only place in their budgets where resident can save. The city has several options for $10-and-under entertainment that includes year-round ice skating, roller skating and skateboarding and summer fun at one of the largest aqua centers in the Midwest.

8. Grand Island, Nebraska

• Metro population: 84,877
• Average rent: $983
• Cost of living: 15% below U.S. average

Every spring, 1 million sandhill cranes visit the Grand Island area on the way to their nesting grounds farther north. It may not be Grand Island’s low rent or low unemployment rate – both lower than 90% of the country – that draw the cranes, but they may convince future buyers to stay for a while on their way to homeownership.

9. Enid, Oklahoma

Image Courtesy of https://www.enid.org/

• Metro population: 61,056
• Average rent: $1,164
• Cost of living: 27.5% below U.S. average 

At 27.5% below the national average, Enid ranks in the top 1% of the country for its low cost of living, potentially making it easier for residents to save money for a home. And Enid renters who wish to put down roots there may not have to save as much, either. The city ranks in the top 1% of the country for affordable home prices, too, with a median home value of $112,641. These numbers make it one of most affordable places on our list.

10. Sioux Falls, South Dakota

• Metro population: 268,232
• Average rent: $1,157
• Cost of living: 7.7% below U.S. average 

South Dakota’s largest city has one of the lowest unemployment rates in the country. At 2.3%, the unemployment rate is lower than 95% of the country. Sioux Falls also has a median household income of $67,713, which ranks in the top 25% of the U.S. And residents will be able to keep more of that income as South Dakota is one of only eight states with no state income tax.

Methodology: Finding The Best Cities To Save For A Home

In this study, we uncover the metro areas that have a special combination of factors when it comes saving for a home. The places analyzed in our study include all 383 major metropolitan areas in the United States. These 383 metro areas are home to over 85% of the population of the United States. Metropolitan areas are particularly useful for our rankings because they include not only each area's major cities but also the surrounding counties which include the suburbs.

The team at BestPlaces.net collected and analyzed statistics in seven key measures which give insights into the conditions and resources for saving for a home. We chose metrics which are as current as possible and as detailed as possible to provide the most relevant insight. Any other lower ranking cities within a 150-mile radius of a higher-ranking city in the same state were removed. Any cities with the highest crime rates – higher than 90% of the country – were also filtered out of this study. 

Each data metrics is normalized and transformed to a common range of 0-100 points for scoring and comparison. Weights are applied to each metric which reflects its importance in the study.  The weighted scores for each metric are summed to create the overall best places for home saving score for each place. The final scores are sorted to produce the final rankings.