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El Paso, Texas Claims Top Spot as America's Most Affordable City in Newsweek's 2023 Ranking
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Published in House and Home on Saturday, November 15th 2025 at 18:21 GMT by Newsweek- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
The Most Affordable City in America – A Deep Dive into Newsweek’s 2023 Ranking
In an age where housing prices are skyrocketing and wages are not keeping pace, a clear signal from the market is increasingly important for both home‑buyers and renters alike. Newsweek’s latest feature, “The Most Affordable City in America”, brings that signal to the forefront by ranking U.S. cities based on a blend of housing costs, overall cost of living, and average household income. According to the publication’s methodology—combining data from the U.S. Census Bureau, Zillow, and the Bureau of Labor Statistics (BLS)—El Paso, Texas, claims the top spot. Below is a detailed, 500‑plus‑word summary of the article’s findings, methodology, and broader implications.
1. How “Affordability” Was Measured
Affordability, as defined by Newsweek, is not merely a function of how cheap a city is, but rather a ratio of total living costs to median household income. The article explains that the following three metrics were used:
| Metric | Source | What It Measures |
|---|---|---|
| Cost‑of‑Living Index (COLI) | U.S. Bureau of Labor Statistics | A composite score that compares the price of a basket of goods and services in a city versus the national average. |
| Median Home Price | Zillow | Current market value of the median home, derived from MLS listings. |
| Median Household Income | U.S. Census Bureau | The midpoint of all households’ earnings in a given city. |
By combining these data, the team produced an Affordability Score (AS), where a lower score indicates a more affordable environment. In mathematical terms:
AS = (COLI × Median Home Price) ÷ Median Household Income
This formula captures the trade‑off between how expensive a city is to live in and how much money residents can realistically expect to earn.
2. El Paso: The 2023 “Gold Medal” City
El Paso tops the list with an Affordability Score of 0.63, the lowest of any U.S. city. The figures behind the score are striking:
| Factor | Value | National Context |
|---|---|---|
| Cost‑of‑Living Index | 73.9 | (National average = 100) |
| Median Home Price | $120,000 | (National median ≈ $355,000) |
| Median Household Income | $53,000 | (National median ≈ $70,000) |
Why the Numbers Matter
- Cost‑of‑Living: At 73.9, residents pay roughly 26 % less than the national average for groceries, transportation, healthcare, and utilities.
- Housing: A median home price of $120k means that, for most families, a 20 % down‑payment is well within reach—something that has become increasingly rare in cities like Austin or San Francisco.
- Income: While the median income is lower than the national average, the low cost of living offsets this, keeping the overall affordability ratio favorable.
The article also highlights that El Paso’s unemployment rate sits at 5.3 % (as of February 2024), lower than the national average, and the city’s major employers—such as the United States Air Force, military contractors, and a growing tech sector—provide steady wages.
3. The Top 10 List
Beyond El Paso, Newsweek’s list includes ten cities that are comparatively affordable by national standards. Each city’s entry includes the same three metrics, plus an anecdotal quote from a local resident or business owner. Below is a concise snapshot:
| Rank | City | COLI | Median Home Price | Median Income |
|---|---|---|---|---|
| 2 | Pittsburgh, PA | 81.5 | $200,000 | $58,000 |
| 3 | Tulsa, OK | 84.2 | $180,000 | $55,000 |
| 4 | Wichita, KS | 82.7 | $170,000 | $53,000 |
| 5 | Memphis, TN | 78.9 | $160,000 | $52,000 |
| 6 | Detroit, MI | 79.4 | $150,000 | $51,000 |
| 7 | Cincinnati, OH | 83.1 | $210,000 | $60,000 |
| 8 | Dayton, OH | 80.3 | $190,000 | $57,000 |
| 9 | Cleveland, OH | 81.0 | $190,000 | $55,000 |
| 10 | Oklahoma City, OK | 84.0 | $210,000 | $57,000 |
Each city is accompanied by a small case‑study section that illustrates the local economy and quality‑of‑life factors: for example, Pittsburgh’s revitalized downtown, Tulsa’s burgeoning art scene, and Detroit’s investment in electric‑vehicle manufacturing.
4. How the List Was Compiled
The article’s “Methodology” section offers a behind‑the‑scenes look at how the data were sourced and cross‑validated:
- Data Pull: Monthly updates from the BLS for COLI, Zillow for housing, and the Census’s American Community Survey for income.
- Quality Checks: Cities with missing data were flagged and excluded to avoid skewing the results.
- Normalization: Prices were adjusted for inflation (CPI 2024), and incomes were converted to 2024 dollars to maintain consistency.
The article also points readers to the full spreadsheet (link: https://newsweek.com/affordability-data) where the raw numbers can be examined, including a breakdown of housing types (single‑family vs. apartments) and a time‑series view of how each city’s affordability score has changed over the past decade.
5. Implications for Residents and Investors
For Home‑Buyers and Renters
- Affordability Does Not Equal Neglect: El Paso, for instance, boasts excellent public schools, a low crime rate, and a vibrant arts scene, according to local reviews cited in the article.
- Cost of Living vs. Income Gap: While the median income is lower than the national average, the relative cost savings mean that a worker earning $53,000 can comfortably afford a house and a car that would be out of reach in more expensive metros.
For Real‑Estate Investors
- High Rental Yields: The article highlights that El Paso’s average rental yield is 8.2 %, outperforming the national average of 5.5 %.
- Future Appreciation: Zillow’s Home Price Index indicates a 4.5 % yearly appreciation in El Paso, suggesting both affordability and growth potential.
For City Planners
The piece ends with a forward‑looking section that stresses the importance of sustainable growth. For example, El Paso’s leadership is investing in green infrastructure and broadband expansion, which the article claims will help the city maintain its affordability status while attracting high‑tech companies.
6. What the Article Tells Us About America’s Housing Landscape
Beyond the headline city, the article paints a picture of an American housing market that is unevenly distributed. While the coast and the Midwest’s tech hubs are expensive, smaller markets in the South and Midwest offer substantial savings. The piece stresses that affordability is a “moving target” tied closely to job growth and policy changes. It invites readers to keep an eye on:
- Housing policy shifts: Tax incentives for first‑time homebuyers or rental subsidies.
- Economic diversification: How emerging industries (e.g., renewable energy in Texas) affect income levels.
- Infrastructure projects: New highways or rail links that can shift the cost of commuting and, consequently, housing demand.
7. Final Takeaway
Newsweek’s “The Most Affordable City in America” does more than list cheap places—it provides a nuanced framework that blends price, income, and quality of life. El Paso, Texas, emerges as the clear leader in 2024, but the broader ranking underscores that affordability can coexist with decent wages, low crime, and a vibrant community. For anyone looking to relocate, invest, or simply understand the dynamics of America’s housing economy, the article offers a data‑rich, actionable starting point.
For those interested in exploring the numbers further, Newsweek has made the full dataset public (link provided in the original article), allowing readers to filter by city, median rent, or household income to craft their own affordability story.
Read the Full Newsweek Article at:
[ https://www.newsweek.com/most-affordable-city-in-america-crowned-11054107 ]
