Small Town Living: The Hidden Costs Rivaling Big City Expenses

Small Town Living Comes at a Premium, New Study Reveals

A recent LendingTree study has challenged the long-held belief that housing is more affordable in small towns compared to cities. The study, which analyzed data from the U.S. Census Bureau’s 2022 American Community Survey, focused on 50 U.S. towns with populations between 10,000 and 50,000.

Topping the list of towns with the highest home values is Vineyard Haven, Massachusetts, with a median home value of $998,100. Following closely are Jackson, Wyoming at $847,300, and Breckenridge, Colorado at $760,000.

Oregon towns feature prominently in the top 25, with Hood River leading the pack. With a population of 23,965, Hood River boasts a median home value of $492,500, comparable to Portland, Oregon. Astoria, with 41,190 residents, has a median home value of $407,700, on par with Austin, Texas. Prineville, Brookings, and The Dalles also made the list, with median home values ranging from $298,200 to $368,200.

La Grande, Oregon, received an honorable mention with a median home value of $243,400, comparable to New Orleans, Louisiana.

The study’s findings indicate that some towns have home values rivaling or even exceeding those in major metropolitan areas. Many of these expensive towns are popular vacation destinations for affluent individuals. High demand and limited housing supply are driving up prices even in non-vacation rural towns.

However, the study also notes that not all real estate in smaller towns is prohibitively expensive. Nevertheless, the high-rate, high-price housing market presents significant challenges for potential homebuyers in these areas.

This research underscores the complexity of the current housing market, where the traditional urban-rural price divide is becoming increasingly blurred.