In 2025, where you live can strongly influence your daily expenses, income options, and overall quality of life. Rising housing costs and inflation have affected both cities and rural towns in different ways. Meanwhile, remote work has made it easier for people to choose locations based on affordability, space, or pace of life.
Understanding the financial and lifestyle tradeoffs of rural and urban living can help you decide which environment better fits your needs and budget.
Cost of Living: A 2025 Comparison
In 2025, cost differences between rural and urban living remain significant—but recent trends show the gap shifting in subtle ways. While urban areas still carry higher average expenses, housing prices in many rural regions have grown quickly due to remote work and shifting demand.
Housing costs continue to be the most noticeable difference. According to the latest figures from the U.S. Census Bureau’s American Community Survey, the median home value in rural areas was about $151,300 in 2022, compared to $190,900 in urban areas. Monthly mortgage payments reflect a similar divide: rural homeowners paid about $1,271 per month, while urban homeowners paid around $1,561.
However, rural housing prices have climbed faster than urban ones in recent years. Between March 2020 and March 2023, home values in non-metro counties rose by 36%, compared to 21% in dense urban counties, according to research from Harvard’s Joint Center for Housing Studies.
Food and utility costs show different patterns. Previous reports from the Bureau of Labor Statistics have shown that city dwellers generally spend more on groceries and restaurant meals. Surveys from ConsumerAffairs indicate that affordability is a common reason for families relocating to rural areas.
On the other hand, rural utility costs can be higher. According to the American Council for an Energy‑Efficient Economy (ACEEE), the median energy burden—the portion of income spent on energy—for rural households is about 4.4%, compared to around 3.3% nationally.
Income and Job Market Differences
Urban households continue to earn more than rural ones. According to the U.S. Census Bureau’s 2023 data, the median household income in rural areas is about $66,600—roughly $14,000 less than the urban median of $80,600.
Job opportunities also vary. Cities tend to support a wider range of industries, including finance, technology, education, and healthcare. In contrast, many rural economies rely more on agriculture, construction, and manufacturing, which can limit job variety and wages.
Remote work could help close that gap—but access isn’t equal. Research shows that rural residents are less likely to have jobs that allow them to work from home, even though they express a strong preference for that option.
Transportation & Infrastructure
How people get around depends heavily on where they live—urban or rural—and this has meaningful cost and lifestyle implications.
Urban areas often offer robust public transit systems. Many cities provide buses, subways, and bike-share programs that allow residents to live without a car. This can reduce expenses on gas, insurance, and vehicle maintenance.
On the other hand, rural residents often rely heavily on cars. Only about 4% of rural Americans don’t own a car, and those who do typically drive much farther than city residents.
Choosing What Fits Your Life and Budget
Deciding between rural and urban living depends on what you value most—whether that’s affordability, career opportunities, access to amenities, or lifestyle preferences. You may want to ask yourself:
- What matters more to you: lower costs or broader opportunities?
Urban areas tend to offer higher incomes and more job variety, while rural areas often come with lower housing costs and fewer daily expenses. Your decision may depend on whether you’re prioritizing financial growth or long-term stability. - Will you be working remotely or commuting?
Remote work can make rural living more feasible, especially if you don’t need to be near a city center. But if you’re commuting regularly, think about how much time and money that will add to your routine. - Do you prefer convenience or space?
City life typically means more access to public transportation, entertainment, and healthcare. Rural life often offers more space, less noise, and a slower pace—but fewer nearby services. - Are you planning for the short term or long term?
Young professionals might prefer the opportunities and energy of city living. Families or people planning to stay in one place for a while may appreciate the affordability and space of rural areas.
Making the Right Choice
There’s no single right answer. What works for one household may not work for another. Think about your income, expenses, job situation, lifestyle goals, and what kind of environment helps you feel secure and supported.
Moving is both a financial and a quality-of-life decision. Take your time, ask questions, and weigh the tradeoffs carefully before making your move.
