The 10 Most Affordable Cities With High Salaries and Low Cost of Living in the West

The Western United States has a well-earned reputation for being expensive. While salaries are high, so is the cost of living, so it doesn't score as well as other regions for affordability. Utilizing the best mortgage lenders in this region is a key component in finding an affordable home.

There are some exceptions, though, including cities with cheaper costs of living and places where wages are high enough to afford a potentially large mortgage and balance out the cost of living there. Here are the 10 most affordable cities in the West, as well as its cheapest and most expensive cities overall.

A note on methodology:

• The estimated cost of living in each city is calculated by multiplying the city's cost-of-living index score by the median annual household expenditure across the United States. This number is an estimate of median expenditures per household in the city.
• The estimated income-to-expense ratio is calculated by dividing the median household income in the city by the cost-of-living estimate for the city. A higher estimated income-to-expense ratio score means the city is more affordable, as the median household income there is above the cost-of-living estimate.
• Cities with a cost-of-living value 10% or more over the national average are excluded from consideration.

The most affordable cities in the West

1. Surprise, AZ

• Estimated income-to-expense ratio: 1.17
• Cost-of-living estimate: $74,718
• Median household income: $87,756
• Cost-of-living index: 102.4

Located 35 miles northwest of Phoenix, Surprise is the most affordable city in the west. The cost of living there is slightly above the national average, yet the median household income is 18% higher than the national median.

Utilities are responsible for driving the cost of living up while housing and healthcare are roughly 11% below the national average, per the Council for Economic and Community Research.

Surprise is ideal for those with an active lifestyle. There are plenty of recreation opportunities in the city. The median age is 41 and the population and residents' income are on the rise. Retail, healthcare, and education are the largest industries in the city.

Estimate costs: Arizona mortgage calculator

2. Rio Rancho, NM

• Estimated income-to-expense ratio: 1.12
• Cost-of-living estimate: $70,632
• Median household income: $78,978
• Cost-of-living index: 96.8

Rio Rancho, New Mexico, is the second most affordable city in the west, based on Motley Fool Money's calculations. The city is a suburb of Albuquerque, situated to its northwest across the Rio Grande. The cost of living in Rio Rancho is three points lower than the national average while the median household income is 6% above the national median, making it affordable for those who can find work there.

Rio Rancho is the third-largest city in New Mexico. The median age of its residents is 39 and both the population and their incomes are on the rise.

Intel operates one of the biggest semiconductor manufacturing facilities in the world in Rio Rancho and is a major employer in the city. Healthcare, retail, and education are other major industries there.

Estimate costs: New Mexico mortgage calculator

3. Denver, CO

• Estimated income-to-expense ratio: 1.09
• Cost-of-living estimate: $78,512
• Median household income: $85,853
• Cost-of-living index: 107.6

Major metropolises usually aren't the most affordable places to live, but Denver is an exception. The cost of living in Denver is 8% above the national average, but the median household income here is 15% more than the national median. High housing costs -- 24% above average -- are largely responsible for the relatively high cost of living.

For those with stable income, Denver has a lot to offer. With all its bars, restaurants, parks, and other activities, you'll never run out of things to do or places to see. It's considered one of the best cities in the country for young professionals, with a median age of 34.9, and it's also great for sports fans. You can catch a Broncos game at Mile High Stadium or see the Nuggets during basketball season.

Estimate costs: Colorado mortgage calculator

4. Cheyenne, WY

• Estimated income-to-expense ratio: 1.08
• Cost-of-living estimate: $69,319
• Median household income: $74,989
• Cost-of-living index: 95

The capital of Wyoming, Cheyenne has a cost of living five points below the national average and a median household income in line with the national median, making it among the most affordable places to live in the west.

Cheyenne is ideal for those looking for a smaller city that still has a lot to offer. Its population is around 65,000 with a median age of 38, and the city is not growing at a rapid pace.

A true gem of the west, Cheyenne hosts the largest outdoor rodeo and western festival in the world each year. The city is home to numerous historic buildings and districts, as well as botanical gardens and museums. It's a hiking hub, as well.

Estimate costs: Wyoming mortgage calculator

5. Colorado Springs, CO

• Estimated income-to-expense ratio: 1.06
• Cost-of-living estimate: $74,864
• Median household income: $79,026
• Cost-of-living index: 102.6

Perched at 6,035 feet, Colorado Springs is also known as "Olympic City," because it's home to the U.S. Olympic and Paralympic Training Center. Fortunately, there are things to do there besides training for the Olympics. It has a diverse mix of restaurants and plenty of outdoor attractions, including Garden of the Gods, a national landmark with stunning red sandstone formations.

Colorado Springs also has highly rated public schools, so it's one of the best affordable cities to raise a family. The median age is 35.1, and the cost of living is 3% above the national average.

The median income balances that out, as it's 6% higher than the national median.

Estimate costs: Colorado mortgage calculator

6. Boise, ID

• Estimated income-to-expense ratio: 1.04
• Cost-of-living estimate: $73,770
• Median household income: $76,402
• Cost-of-living index: 101.1

Boise is the sixth-most affordable city in the west. The capital of Idaho, Boise's median household income and the cost of living there are about in line with the national benchmarks.

Boise is growing and offers a wide range of work, culture, and recreation. It's home to a number of companies, including Albertsons and Lamb Weston. Micron Technology, a semiconductor company, also has operations in the city. The city has a burgeoning music and theater scene, in addition to hiking and biking trails and opportunities for rafting and fishing on the Boise River.

Estimate costs: Idaho mortgage calculator

7. Casper, WY

• Estimated income-to-expense ratio: 1.02
• Cost-of-living estimate: $65,670
• Median household income: $67,011
• Cost-of-living index: 90

Casper, in central Wyoming, is the second-most largest city in Wyoming and is a true western town, with a history of cowboys, pioneers, and oil. The cost of living in the city is 10% below average, but so is the national median household income.

Casper may appeal to those looking for a calmer lifestyle. The population of the city has stayed roughly even in recent years, while wages have grown. In addition to exploring historic landmarks and museums that evoke the wild west, Casper is also close to hiking, biking, and ski trails. Hunting and fishing are also big draws to the area.

Estimate costs: Wyoming mortgage calculator

8. Kennewick, WA

• Estimated income-to-expense ratio: 0.99
• Cost-of-living estimate: $70,924
• Median household income: $70,429
• Cost-of-living index: 97.2

Kennewick is one of the three Tri-Cities in Washington, along with Richland and Pasco. They're located in the Columbia Valley, which is an area particularly well-suited for producing wine. Because of that, the Tri-Cities area has a considerable number of wineries and microbreweries.

Kennewick cracks the top 10 most affordable cities in the west thanks to its below average cost of living. Its median household income is also a few percentage points below the national median, but not low enough to make the city unaffordable. Housing and transportation in Kennewick are particularly cheap, but transportation and healthcare are more costly than the national average, according to data from the Council for Economic and Community Research.

Estimate costs: Washington mortgage calculator

9. Reno, NV

• Estimated income-to-expense ratio: 0.96
• Cost-of-living estimate: $76,032
• Median household income: $73,073
• Cost-of-living index: 104.2

Reno may be more known as a gambling destination than a place to live, but it's among the most affordable cities in the west. Still, the cost of living in Reno is four points above average, while the median household income is a smidge below the national median.

There's more to do in Reno than gamble. The city is close to Lake Tahoe, which boasts a number of ski resorts, hiking, and biking trails. Rafting on the Truckee River is popular in the summer, as well.

Estimate costs: Nevada mortgage calculator

10. Phoenix, AZ

• Estimated income-to-expense ratio: 0.95
• Cost-of-living estimate: $76,105
• Median household income: $72,092
• Cost-of-living index: 104.3

The capital of Arizona is the largest city on this list and also one of the largest in the United States. Despite its size, Phoenix has remained fairly affordable. Housing is costly at 14% more than the national average, but the overall cost of living is only 4.3% above average.

With a median age of 34.4, Phoenix has a balanced mix of younger adults, professionals at the peaks of their careers, and seniors. It's popular with retirees, although many prefer nearby Surprise. Residents can pamper themselves at the city's luxurious spas and play golf on courses designed by Jack Nicklaus.

Estimate costs: Arizona mortgage calculator

Cheapest and most expensive cities in the western United States

According to cost-of-living data from the Council for Community and Economic Research, these are the 10 cheapest and most expensive cities in the western U.S. to live in based on data from the first quarter of 2024.

A cost-of-living index of 100 represents the nationwide average, with a lower score meaning the cost of living in that city is lower.

These lists are based only on the cost-of-living index, not overall affordability.

Cheapest cities in the western U.S.

Most expensive cities in the western U.S.

Sources

• Bureau of Labor Statistics (2023). "Consumer Expenditure Survey".
• Census Bureau (2023). "American Community Survey."
• Council for Community and Economic Research (2024). "2024 Q1 Annual Average Cost of Living Index Report."