Just 30 miles north of Dallas, the picturesque city of McKinney has been making a name for itself in recent years as one of the fastest-growing in the country. Now, a new analysis by financial advice service The Motley Fool has determined that McKinney is also the most affordable city in the entire nation.
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According to the Virginia-based company, which provides financial advice and investment insights, McKinney tops the list of most affordable cities in the U.S. for its relatively low cost of living and high median income. The median household income in the city is $113,286—52 percent higher than the national average—while the cost-of-living is an estimated $70,778—three points below the national average.
The estimated income-to-expense ratio in McKinney is 1.60—the highest in the country, which means the city is the most affordable.
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"Several factors contribute to the high median household income in McKinney. A larger share of the population has a bachelor's degree or higher compared to the national average, which generally translates into higher wages," Jack Caporal, research director at The Motley Fool, told Newsweek.
"Additionally, McKinney's proximity to the Dallas-Fort Worth area attracts mid-career professionals who earn relatively high salaries," he added. "The two most common jobs for McKinney residents are in management and business and financial operations roles, with median earnings around $200,000 for these positions."
It helps that home prices are relatively low in the city. The median property value in McKinney is $400,400, about $20,000 lower than the national average. Lower home prices and thriving industries—including scientific and technical services, retail and health care—make McKinney "an attractive location for mid-career Americans," The Motley Fool writes, with the average age of residents in the city of over 200,000 people being 37.
"McKinney has experienced significant population growth over the past decade, although growth has slowed in recent years. The population grew by roughly 45 percent from 2012 to 2022, but only 8 percent from 2018 to 2022," Caporal explained.
"During the same periods, the median household income increased by 38 percent and 29 percent, respectively. This indicates that population growth has not hampered residents' ability to keep up with the cost of living," he added.
"The recent slowdown in population growth should help the city manage rising costs while still attracting high earners, keeping it in the running for the most affordable city in the country."
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Two other Texas cities features in the top 10 most affordable cities in the U.S., Midland and Austin. Here is the complete list according to The Motley Fool:
- McKinney, Texas (cost-of-living estimate: $70,778; median household income: $113,286)
- Edmond, Oklahoma (cost-of-living estimate: $65,305; median household income: $96,389)
- Morristown, New Jersey (cost-of-living estimate: $77,272; median household income: $113,296)
- Midland, Texas (cost-of-living estimate: $70,997; median household income: $90,448)
- Joliet, Illinois (cost-of-living estimate: $68,662; median household income: $84,971)
- Hilton Head Island, South Carolina (cost-of-living estimate: $76,251; median household income: $93,694)
- Austin, Texas (cost-of-living estimate: $71,435; median household income: $86,556)
- Pierre, South Dakota (cost-of-living estimate: $67,494; median household income: $80,473)
- Surprise, Arizona (cost-of-living estimate: $74,718; median household income: $87,756)
- Minot, North Dakota (cost-of-living estimate: $65,889; median household income: $75,545)
In Midland, the cost of living is just below the national average, while the median household income is 21 percent above the national figure. In Austin, the cost of living remains 2 percent lower than the national average, despite the city's massive growth; the median household income in the city is 16 percent above the national figure.
The Motley Fool used data from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey, the Census Bureau's 2023 American Community Survey and the Council for Community and Economic Research's 2024 Q1 Annual Average Cost of Living Index Report.
Are you a McKinney, Texas, resident? Tell us about your experience living in the city, and whether you agree that it really is that affordable, by contacting g.carbonaro@newsweek.com
Update 07/04/24, 9:51 a.m. ET: This article was updated to include a comment from Jack Caporal of The Motley Fool.
About the writer
Giulia Carbonaro is a Newsweek Reporter based in London, U.K. Her focus is on U.S. and European politics, global affairs ... Read more
