Living in a village has become increasingly popular in recent years, thanks to the community spirit, slower pace of life, and of course, lower cost of living.
But is this lower cost of living reflected in home prices? Do homes in small towns and villages come at a premium compared to their big-city counterparts? Then again, some people still consider a “village premium” when it comes to the cost of housing, but is it true?
To answer all these questions, we will take a look at the realities of buying a home in a village and whether or not it will be a good decision.
Is It Expensive to Live in Villages?
When it comes to the cost of living, many people assume that living in a village is cheaper than living in big cities. But are they? To answer this question, we analyzed a few villages in the United States, which we will later discuss in this article.
Let’s just mention the median home prices in a few of these areas to compare the respective prices. In Meridian, the median home price was $149,000. This is lower than the national median list price of $188,000. Moreover, the place is particularly attractive for first-time home buyers who may be searching for affordable homes.
Redfin‘s latest analysis shows that,
“Nationally, the number of properties for sale in remote areas began the year down by a record 44.4% from the previous year.”
In Ponca City, Oklahoma, the median list price for homes was $122,000. This is notably lower than both the national median list price as well as the median list price in other parts of Oklahoma. The median list price in Tupelo, Mississippi was $139,900, which is also slightly lower than the national median list price. Then again, this is what we have found from a report on the FL Housing Market,
“In The Villages, Florida, the median listing price of a home in January 2023 was $420K, rising 9.1% from the previous year.”
Overall, our data indicate that there may not always be a “village premium” on home values. In fact, you may find that homes in villages can be significantly cheaper than homes in cities. In a nutshell, living in villages is relatively cheaper than living in big cities in the US.
Our Analysis of 6 US Villages Regarding Home Prices
As we have said earlier, we have analyzed some village areas in the US to figure out whether it is really expensive or not to live in villages. Here is the analysis of the 6 village areas,
1) Meridian, Mississippi
- Average home value: $91,700
- Average household income: $30,088
- Living cost: 12.5% below the U.S. average
- Population: 37,252
Meridian is a village located in Lauderdale County, Mississippi. The median home value in Mississippi is $91,700, which is 5.5% lower than the national average. Home values have increased by 2.9% over the past year. The price may rise steadily over the next several years.
The majority of the homes in Meridian are single-family dwellings. There are plenty of options for apartments or townhomes as well. Rental rates in Meridian are some of the lowest in the area, with an average rent of just $693 per month.
2) Ossining, New York
- Average home value: $350,000
- Average household income: $85,538
- Living cost: 12.44% below the U.S. average
- Population: 27,298
Ossining is a small village located in the Hudson Valley. Though it has a population of only 24,000, the village is home to many of the amenities of city living. The area is based on two villages. The houses in the Village of Ossining are cheaper than the part of Briarcliff Manor, which is another part.
The median listing price for a home in Ossining is $350,000, compared to the median list price of $735,000 in New York City. Ossining offers plenty of attractive features considering value for your money. At the same time, residents of Ossining enjoy the benefits of small-town life.
3) Nacogdoches, Texas
- Average home value: $151,800
- Average household income: $$35,050
- Living cost: 14.6% below the U.S. average
- Population: 32,912
East Texas’s piney forests are where you will find Nacogdoches. It is a small city with a population of 32,912. The median home price is only $151,800, which is significantly lower than the national average of $266,300. So, living in Nacogdoches is surprisingly affordable.
In addition to the low cost of living, the town is known for its festivals like the Annual Nacogdoches Film Festival and the Texas Blueberry Festival. Therefore, it provides all the benefits of a rural community while having access to amenities like shopping, restaurants, and entertainment.
4) Ponca City, Oklahoma
- Average home value: $102,600
- Average household income: $44,281
- Living cost: 14.9% below the U.S. average
- Population: 23,940
Although the city is on the smaller side, there is still plenty to do in Ponca City. The real estate market in Ponca City has been relatively stable over the past few years. According to Zillow,
The median home value is $102,600, which is 14% lower than the national average
Ponca City is a small town with a population of nearly 24,000. There are a variety of outdoor activities such as fishing, hunting, and camping. The Osage Hills State Park provides a great spot for hiking and exploring. Considering everything, Ponca City could be the perfect place to call home.
5) Tupelo, Mississippi
- Average home value: $148,900
- Average household income: $54,691
- Living cost: 18.7% below the U.S. average
- Population: 38,251
With a population of just under 40,000, Tupelo offers residents a small-town feel with the convenience of modern amenities. In terms of housing, the median home value in Tupelo is $148,900, which is much lower than the national average. According to Zillow,
Homes in Tupelo have increased by 9.3% over the last year, leading some to speculate that there is a “village premium” on home prices in Tupelo
While home prices may be lower in Tupelo, they are still considered overpriced in comparison to other areas in Mississippi. So, consider the overall cost of living while purchasing a home in Tupelo.
6) Statesboro, Georgia
- Average home value: $115,100
- Average household income: $32,790
- Living cost: 17.3% below the U.S. average
- Population: 32,115
Statesboro is known for its rural charm, vibrant music, and cultural scenes. The cost of living is lower than in many other cities in the state of Georgia. According to Zillow,
The median home price in Statesboro is $115,100
This is slightly lower than the median home price of $175,000 in the state of Georgia as a whole. According to Rent Jungle,
The average monthly rent for a one-bedroom apartment in Statesboro is $664
This is significantly lower than the average rent for a one-bedroom apartment in Atlanta, which is $1,228. Overall, living in Statesboro can be quite affordable. It is a desirable choice for those trying to cut costs.
Note –
All the data are taken based on December 2022.
Whether or not homes in villages are overpriced is a matter of perspective. While some might consider them to be too expensive, others might see significant value in residing in a village. Ultimately, it is up to potential buyers to conduct their own study and determine whether the expense of living in a village is justifiable for them.
