Top Cities with Highest Pay and Lowest Cost of Living in 2026: Study

According to a recent poll, many Americans are dissatisfied with the rising cost of everyday goods in 2026. In response, a study by Niche.com identified the most affordable cities in the United States—places where residents can enjoy high income levels alongside a low cost of living.

Niche’s ranking system evaluates larger cities with at least 250,000 residents, giving equal weight to affordability and median household income. This approach ensures that the selected cities are not only economically accessible but also offer strong earning potential.

The top city on the list was Laredo, Texas, as determined by the Niche research team. Their analysis used data from the Bureau of Labor Statistics to compile the rankings. Located along the southern border with Mexico, Laredo is home to approximately 257,600 people. The city features numerous parks and is known for its excellent public schools. According to Niche, Laredo offers a dense suburban atmosphere, with most residents owning their homes.

Laredo was also recognized as the most affordable city in the U.S. in 2025, based on a GoBankingRates analysis of the country’s livable cities.

In addition to Laredo, the Top Five cities include:

Fort Wayne, Indiana
Toledo, Ohio
El Paso, Texas
Wichita, Kansas

Allison Shrivastava, an economist at Niche, highlighted the growing trend among individuals seeking neighborhoods that provide both career opportunities and a strong sense of community. She noted that smaller, walkable communities offer a balance of amenities and livability that appeals to families and young professionals alike.

Here are the top 25 cities in the U.S. based on affordability and income:

Laredo, Texas
Fort Wayne, Indiana
Toledo, Ohio
El Paso, Texas
Wichita, Kansas
Corpus Christi, Texas
Oklahoma City, Oklahoma
Tulsa, Oklahoma
Louisville, Kentucky
Indianapolis, Indiana
Memphis, Tennessee
Lubbock, Texas
Cleveland, Ohio
Plano, Texas
Detroit, Michigan
Winston-Salem, North Carolina
St. Louis, Missouri
San Antonio, Texas
Lexington, Kentucky
Pittsburgh, Pennsylvania
Greensboro, North Carolina
Lincoln, Nebraska
Irving, Texas
Buffalo, New York
Fort Worth, Texas

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While factors such as employment, relationships, and mortgages may prevent people from relocating, it raises an important question: where are Americans moving, and where are they leaving?

According to the latest U.S. Census Bureau statistics, certain states have experienced significant population changes. California, New Mexico, Hawaii, West Virginia, and Vermont saw the largest decreases in population.

[Source: U.S. Census Bureau]

On the other hand, Idaho, Utah, Texas, South Carolina, and North Carolina recorded the greatest population increases between July 1, 2024, and July 1, 2025.

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