Living in a Great, but Expensive Area Vs. Moving to a Place That's Less $$$$

We left the Bay Area about 15 years ago due to the insane housing prices and haven't regretted it. In the Sacramento area, we were able to get a nice house with great schools for a fraction of the cost. When we first moved here, we even had less traffic, although it's much busier now.

You have to keep in mind there's always a reason it's cheaper somewhere else. Here, it's the extremely hot summers. It's also not as educated an area as the Bay Area. We knew that moving here, but it did take adjustment. Don't get blinded by what you can get in other areas. Step back and really consider the drawbacks. If it's cheaper there, there are going to be at least a few drawbacks.

We downsized but stayed in the same area. BEST DECISION EVER!!!
Got rid of LOTS of things as well. Much more peaceful. Stuff was just weighing us down. I would say DO IT if you can. It is an amazing difference, very freeing.

I did this 7 years ago. We lived in a very affluent part of the state, where the median home price was about $400,000 when we moved (our home there didn't cost that much, but we bought before the housing bubble). Most folks drove brand new expensive vehicles and sent their kids to private schools. I found a house in a small town 2.5 hrs away (but still in the same state) for $40,000. 4 bedrooms, 2 baths. The house cost less than the vehicle I was driving at the time. I paid cash for the house, and we have lived here ever since. Not only was I anxious to live "debt free" (I was able to pay off all other debt the 1st year I lived here), but I didn't want to raise my last 4 kids in an area where the expectation was spend, spend, spend and keep up with the Jones.

We live in a small town of less than 3500 people. The neighbors look out for each other and everybody knows everybody (not EVERYBODY, but it seems like it most days). The kids come home when the street lights come on, we have relatively little crime, and the general cost of living is quite low.

It was a scary jump for me - I had to hope that I could convince my employer that I could do my same job at home as if I was in the office. Also, I have two special needs kiddos and it was a leap of faith that I could find a way to have their services transferred down here. However, I have never been happier that I did this. Not only do I not have any credit card debt, I don't have a car payment, and I own my home free and clear. I "make" way more money living here, than I ever would have staying where we were - simply because I spend so much less (and I am tempted so much less to buy really expensive things).

My "plan" worked so well, that in the last 2 years, my 2nd oldest daughter AND my mom moved to this same town as well - each living less than 6 blocks from me in either direction. My mom paid cash for her home, and my daughter rents a beautiful 2 bedroom 1 bath home for a fraction of what she could have rented a crappy apartment for where we used to live. We also moved my dad, who is in a nursing home, down here.

I think that many folks strive to make more money. But why work harder when you can spend less and have a much bigger payout :)

If you decide to do this, I wish you all the best! It has really changed my whole family's life for the better.

I grew up on the West Coast and thought the cost of living there was normal. It wasn't until I took a trip inland that I realized just how ridiculous it is.

I've since lived all over the US (military) and have seen many lovely places...and now live in Missouri permanently. I'll never go back to the coast. Our home and property would go for millions in Seattle. Less than $150k here. Groceries are cheaper, people are nicer, schools are less crowded.

And we're happier. :)

We moved from the Bay Area to Roseville when my child was 18 mos old with the intention of me quitting working. Roseville has turned out to be a perfect fit for us and we've never regretted it once.

If my husband were to ever be transferred back to the Bay Area, we wouldn't be able to afford the house we sold. And with me not working, my 401k has suffered. However, you cannot put a value on the difference moving made to our family life and we wouldn't change a thing.

We just did this. Are actually in the process right now. We currently live outside Chicago. Our house is listed at $239,000. Our house payment is nuts. half of it is property taxes. We purchased a house in a Podunk town in southern Illinois on the Ohio river. for get this $30,000. we paid cash for it. will have to put about $30,000 into it to update kitchen. And down the road we are adding a bathroom on the second floor. . But we are retiring at 55 and will have no house payment. Yes we will have to make it a planned trip for visiting our kids. and them us. but the benefits of being able to retire while still able to travel and function way outweighs the benefits of staying in a city where the rat race has just become more than we want. We are excited about i t.
I'm adding on to my answer. We did choose the location we are moving to specifically. We are done raising children. Don't want to pay for any more schools. Not that I don't want others children to go but I have been paying for them for a long time. We have purchased a house that is almost the same size as the one here in oswego. Taxes are $400 per year instead of $800 per month. Drawback is it has not been updated since the 70's. and thats ok. you update and redo any house you purchase. but we chose to be done with the busy expensive stuff. we are about 30 minutes from the closest major town. about the same distance as we were up here so not giving up any of the amenities. (food, movies, museums etc) just not paying for the infrastructure. The bonus of doing this for us is that we will be able to take what we paid in house payments and travel. its a trade off. what do you want the most. for us it is time together to travel before we are no longer physically able. My husband has rheumatoid arthritis. We want some years to just live. and not work. and thats not going to happen up here. so there won't be 5 different grocery store chains in our town but there are 30 minutes away. There is no movie theater but there is cable and local school has plays and musicals etc. I love small town life. (think a town like grady from doc hollywood with michael j fox) thats where we are moving. and I can't wait!!!

I've done it!!!!

I used to live in NYC. I LOVE NYC!!!! I loved the hamster wheel of work work work and having the best of everything in the world at my fingertips 24/7.

But I was CURIOUS what slowing down life would be like, and when I got pregnant with my first, my ex (husband at the time) and I moved to central PA to a VERY CHEAP, OLD, SMALL town so I could quit my job and be home and we could live on just his income.

Suddenly, we had a big, beautiful 3-story old brick house with gorgeous wood detailing, a great yard, and extra garage, a beautiful Magnolia shading the yard, and large art studio for me in the attic. Our mortgage is less (a lot) than my Brooklyn rent for a dumpy studio was. Our grocery bill was reduced by about 3/4 even with more mouths to feed (three kids now) and EVERYTHING is cheaper. All the kids music lessons, etc. We live comfortably in opulence surrounded by gorgeous farmlands and near a university town with every convenience, farmer's markets, lovely community, no snobs, no traffic, loads of free parking everywhere, totally safe, lots of culture via local universities, galleries, concert halls, 3 hours from several major cities for daytrips, lots of friends and open spaces for kids to play, beautiful storybook Victorian architecture and blossoming trees...everywhere. I have very wealthy friends living in San Diego, LA, Connecticut, NYC, Washington state, D.C., and in my opinion our quality of living is the highest for a fraction of the cost.

The cons are: If one was working full time here and not a doctor or lawyer, the salaries are very low. My ex kept his "city" job as a traveling musician, so we have a comfortable amount of money for here, but many people are poor. ALTHOUGH, "poor" still seems to mean nice little houses and perfectly decent leased cars, nothing like city poor..there are NO bad neighborhoods and no crime. My ONLY major complaint: Since our town is poor, the population is less educated than the next town over where the fancy people live, and therefore our public school caters to kids who get very little instruction outside of school. I'm not thrilled with the level of education the kids are getting there. They could be doing so much more. But we use the rich environment to supplement and take trips whenever possible. And to be honest, lots of parents I know with kids at schools in expensive areas have just as many complaints with school so...

A few years back just after we moved here we had an AWFUL IRS debacle with my ex's band. Through no fault of our own we had a huge lien and ended up in bankruptcy after a 4 year fight. If that had not happened, our house would be paid off or refinanced to peanuts and we'd be even MORE comfy!!! That was our original plan... But fortunately, even with all that happening, our expenses here are so low, we were able to keep a good standard of living through it all as far as kids were concerned (free parks, nature, and libraries galore) and rebuild savings quickly once bankruptcy was finished. Now we plan to travel and use this home as a cheap home base.

I never want to go back to spending huge amounts of money for monthly survival again. Low monthly overhead is VERY FREEING!!!!

Yes. We moved from the Washington DC area to Western Pennsylvania. It was a hard decision in terms of career, because we were both working there, and only 1 of us had a job offer in PA when we had to decide. We went for it. We decided to make the leap because house prices were crazy as was the commuting. The only way we could afford even a small townhouse was to live 90 minutes each way from work. So we were paying a fortune to live and spending 3 hours of every day commuting opposite directions.

We spent about the same amount on our house here, but that gets us a real house and a yard with a 15-20 minute commute from work in a good school district. Fortunately, the spouse found a new job within a few months of moving. Our quality of life is so much better here.

I think NewName put it well. There usually is a reason it's cheaper somewhere. My father says "you get what you pay for." Her reference to the Bay Area versus Sacramento is a good one and a good friend I have out there says the same thing. He did the opposite - lived in Sacramento and moved to San Francisco. Aside from the great weather around San Fran, he loves the diversity and would have a hard time moving somewhere else now even though it is insanely expensive. Those $40k prices wouldn't get half a bedroom. Even $400k gets you nothing. He hates that part but loves all the outdoor stuff, natural beauty, innovative environment, really interesting people and all. So I think it is about different people's priorities and also what they do for a living. He is in tech so that's where all the jobs are. If he was a police officer, he could work anywhere. A new job can be great but if you move for it and something goes wrong, are there other jobs in this lower key area? That happened to my husband. We almost moved years ago from high cost of living at the time to less expensive. Luckily he scouted things out ahead of time and the jobs available were not nearly as plentiful as he thought they would be. So we opted to stay where we were. And sure enough, the company he would have worked for went under.

It's affordable and comfortable where we live. Area and house.
That said, we do well enough.
Our house is paid off (has been for quite some time) and I would NEVER live anywhere where we would be slaves to a house payment or be house poor.
Properties here continue to rise in value.

That said, I think the bigger issue is (and always will be) living above O.'s means anywhere you live. The big secret, no matter where you live is living on LESS than you make.

We always say we'd like the slower pace of a really small town, but can't imagine where we'd work or the hellish commute!

I can't say we made the jump on our own. We got an assignment to a base in the southwest with a lower economic scale. The home we bought before the boom/bust has served us well as all the newer homes are priced crazy for a similar size.

Retirement is around the corner and we are getting by comfortably even with hubby's "forced" retirement due to medical issues. As I see it, it could be worse and we are forced out on the street due to the world financial issues. People from other parts of the country are starting to come in and buy into the retirement thing so prices have climbed up on things.

We live about two hours away from bigger cities and make day trips to get things that are not local. But we do enjoy the peace and quiet. When was the last time you laid in bed and heard a train whistle blow in the middle of the night and not be next to the tracks? If I drive three miles out of town I am in the middle of wheat fields or near a dairy with over 5,000 cows.

The only drawback I find is if I want to go to a concert I might have to go to Denver, Dallas or Oklahoma City to see the group. But then we make a weekend out of it.

the other S.

it's tempting! actually, we sort of do it- we live way far out from my dh's work, because the DC metro area is so expensive, and we love it out here. but chucking it all and going somewhere where we could live in beauty and work a couple of little low stress jobs and enjoy a slower pace is a delightful fantasy. i engage in it all the time.
probably when we retire. if i can bear to let go of our little farm.
:) khairete
S.

No.

We did the opposite. We lived in a very affordable area in a very affordable house and weren't thrilled. It was smart and we did it for ten years. Made sense.

But we wanted a neighborhood like the one we moved to. So to be smart, we bought the most outdated house. All pink and mint green. Stuck in the 80's. But you can paint and redo flooring. Which we have. So for us, it was an investment.

I think neighborhood (schools, activities, people..) are important. For us, it was more important than the house.

We're not into tearing out walls, but if you can find a fixer upper (cosmetic) you can get sometimes find great deals without having to sacrifice neighborhoods.

:)

I live in Florida and love it for the most part. Housing is somewhat expensive, but not compared to areas like California and New York. I never bought bigger...we still live in our first home. It is a little cramped, but I just cannot see being house poor either.

What is your income going to be? If you stayed in the high price area, can you still afford to fund stuff like your retirement accounts and kid's college funds? If you are just going to get by in a high price area, then that's enough reason to move to a less expensive area in my mind.

What is your long term goal here? That needs to dictate your decision.

We were very fortunate to be able to live where the public schools were excellent. We felt like the taxes we were paying were worth it. Loved the location in the center of town. We had paid off our house, years ago. ALL of our family were within 20 minutes of us. But once our only child left for college, we started noticing that our taxes were rising VERY quickly.

This last year our appraisal shot up so high and our house was going to need major work or be torn down and rebuilt, we realized, maybe moving to a way less cost of living town, was a smart idea for us. So we sold our home, and purchased a brand new home in a small town right out of the city. Selling our old home, gave us enough money to pay cash and put a nice amount in savings. Sure it takes more time to visit our family or for them to come out and see us, but since they are all retired, not a real problem.

Make a list of the advantages you have staying where you are. Then make a list of disadvantages.

Also figure out your current expenses if you stay and find out what it would look like in the other communities you are considering.

That is what I did and it was no denying, it was the right time.

I'm here in SoCal with you so I totally get the cost of living here, but I would never move away. I always envy people who move to Utah/Texas/Oklahoma/AnywhereButHere and a buy a huge house for under $300,000 (sometimes WAY under), but then I think of all the trade offs and I am happy to pay for my life here. For me, the weather alone is a deal breaker, but some of the other things I love about it:
1. Tons of opportunities - year round soccer, baseball, football, etc plus dozens of camps to choose from
2. Easy access to the beach and the mountains
3. Parks on every corner (I'm in Irvine)
4. Professional sports teams, big Broadway-caliber theaters, concert halls, etc
5. A major international airport plus smaller ones like John Wayne and Long Beach to make traveling anywhere relatively easy

Never, not in a million years! I love where I live and have the income (great planning) to support it. I love the weather, my pool never closes. I have access to everything, the schools are awesome and access to music is amazing. My daughter is 22 and she will hear that so-and-so is playing a club in Hollywood or Los Angeles. She has also seen a lot of artists when they were up and coming so that is great. So funny to hear about housed that cost 30 or 40K....that might be my laundry room. I could never make what I make surrounded by cornfields, employers don't need to pay that.

Yes. I ask my husband about this a lot. But he loves to work and where we live has many job opportunities if his current job doesn't work out. And he loves the conversations people have here about it all. Then he says how we have friends here we really like and certain activities wouldn't be the same elsewhere. We are fortunate to not struggle financially either so we can deal with it. But it's interesting to hear it's worked well for others. What also holds me back is hearing that sometimes places with low costs of living don't have good schools and there are actually more drugs. My friend also says how sure, her house cost less but her pay reflects that while her car costs the same there as in an expensive place and she feels other things cost the same too. But good question.

The weather is important to me.

I live in a lesser house in a climate I find comfortable allowing us to do outdoor activities all year. I'm sure people in the midwest can do outdoor activities during the winter, but it would take me awhile to get used to it (bundling up to go to the store would be new for me).

Also, it is not too hot here, so we do not have A/C which I am sure some people could not imagine living without it. I have friends in southern states who often complain about the heat and humidity.

I think you have to look at the pluses and minuses.

In my town I could buy a huge 2500 sq ft. house with 4 or 5 bedrooms and 2-3 bathrooms and multiple floors for around $200K. In a larger town the same quality house would run $400K-$500K. Pick up the same house and move it, same lot size, same everything. Very different prices. Is it worth more? I don't think so.

I have a friend whose husband is an engineer. He worked for a good company and they had a lot of company branches all over the world. They lived near me and their house was a nice brick home with 3 bedrooms and 2 bathrooms, double garage, nice yard with plenty of room for a garden and play equipment for the kids. They really wanted to move to another state and were waiting for the right job to come open so they could afford to live in the new area. The cost of living was nearly double there.

They finally got the word and he got the new job and a substantial raise. They sold their house here in town for $65K. There new house was $259K. Huge difference and their new house wasn't much different that the house they had here.

Almost the same house size, similar construction materials, little bit larger yard but all in all it was not that much of a difference at all.

Being in a different place paying more for the same thing seems silly to me.

BUT what are the pros of doing this? Better schools? Better resale value? More status in the community? Why move?

If you have everything you want and it's a good place then why move?

If I could move to a nicer larger home with more area and have access to theater, museums, shopping centers, cultural events, and more and the cost of living there was met with a significant raise so the percentage I was paying out for living was very similar to the one I was leaving then it would be very very tempting.

We've though about moving out of state. Denton Texas is a lovely area. Close enough to Dallas/Fort Worth to be appealing and far enough away from that same area to be independent if we never want to go there. We could live there in a nice house with a nice yard and have nice schools for the kids and live well WITH THE RIGHT salary or income.

SO if we decided it was something we wanted to do we could start the application process and hubby could find a job. If he was offered one that was what we needed or if I had to work for a while to compensate while he worked and proved himself then we could do it.

If we decided we wanted to retire early and own our home and vehicles and have fewer bills and live much better off then we would stay where we are.

This was the plan before my husband had a massive heart attack and quadruple bypass surgery and became disabled. Our income won't allow us to move very much right now.

I think you have to make a list for and against the move. Look at your ages, health, possible issues that might come up, and more. Trying to figure out what you can or cannot do is important.

I have friends who moved to NC and have a huge house with no mortgage. Pay about a 1/4 of the taxes they paid in NY.

I do think about it. In fact, I'd start packing tomorrow. But my hubby is tied to this area. I'd love a lower cost of living and lower taxes (pay about 20k in taxes here).