One Of The Most Affordable Places To Live In The US Is An Underrated Michigan City

There is no denying that your dollar is worth a little less than before, with inflation continuing to rise in 2025. Even so, some cities in the United States are gaining recognition for their unique blend of affordability and lifestyle opportunities. Foremost amongst this trend are towns like Greenville, South Carolina. But the list is growing; a recent U.S News and World Report outlined the cheapest places to live in the United States, among which one coastal Michigan town sits surprisingly high. While many Michiganders and tourists to the Great Lakes state may automatically think of towns like Marquette and Mackinac Island, Bay City, Michigan, occupies the sixth spot on this most recent report.

Bay City sits next to Lake Huron. With a population of just over 33,000 (44% of residents are 34 or younger), the town is appealing to those looking for a more affordable lifestyle thanks in part to its incredibly low cost of housing. The average cost of a home in the city is just over $90,000. That is staggeringly low compared to other, similarly sized Michigan cities like Marquette, where homes cost $240,000 on average. Apart from the low cost of living, this underrated city offers plenty of attractions, activities, and robust economic opportunities. 

Michigan did not see the tourism boom that other U.S. States experienced in 2024, but the state still has plenty to offer, and Bay City is no exception. While the city is far from a small town, one can live at a quieter pace here and enjoy an extensive beachfront at the nearby Bay City State Park. The city also offers lengthy river walks and a historic downtown. For residents who value architecture, Bay City has a city hall that is well renowned for its intact classical style; it's enshrined in the Smithsonian Institute Archive. Despite its apparent sleepy-town feel, Bay City is home to one of the largest fireworks displays in the Midwest.

Bay City has a robust economic base thanks to companies like General Motors Corp. and S.C. Johnson Inc., which have a presence there. It is also close to larger urban centers like Saginaw, which offer further employment opportunities. Given the low housing cost, homeowners in Bay City can benefit from leveraging these budget-friendly ways to increase home value, making the most of their investment.