3 pros and cons of buying a home in a small town


A real estate agent shakes hands with an elderly couple in front of a sign and a house for sale.

Image source: Getty Images.

City life is not for everyone. And there may come a time when you decide you’re ready to ditch the city and move to a place that isn’t always bustling. You may even decide to buy a house in a small town.

In 2022, the share of homes purchased in a small town reached an all-time high of 29%, according to recent data from the National Association of Realtors. But is small-town living right for you? Here are some pros and cons to consider.

Benefit #1: Lower house prices

Homes in small towns aren’t always as sought after as those in larger suburbs or big cities. So you could spend less on a house you buy in a small town. This could mean taking out a much more affordable mortgage. And given how high mortgage rates are these days, that’s an important thing.

Advantage n°2: Lower cost of living

In many cases, you will enjoy a lower cost of living across the board in a small town compared to a more populated city or area. And at a time when the cost of living is rising across the board due to inflation, that’s a plus.

When there are only a few hundred people living in your town, it’s conceivable that you’ll end up knowing and building relationships with everyone in your town. This can be a really good thing, especially if you’re the type of person who values ​​community and likes to have neighbors looking out for each other.

More: Check out our picks for the best mortgage lenders

Con #1: Fewer Job Opportunities

When you live in a small town, you may not have the same access to jobs as in a big city. And unless you have a job you can do remotely, that could mean facing a long and unpleasant commute to work, which could be a daily basis.

Con #2: Fewer Amenities

It costs money to open and operate a business. And small businesses may be less likely to locate in a small town because they have a very limited customer base – and limited revenue. And so, if you are moving to a small town, you may find that you don’t have many restaurants, cafes and shops nearby.

Cons #3: The potential for fewer public services for children

If you live in a city that doesn’t have a lot of kids, you may not have access to a good library or park system. And the school system may not be what you want it to be. If you have children, it’s important to do plenty of research before buying a home in a small town. Even if the utilities are reasonable, you will need to consider the implications of putting your children in a school where their entire class might be made up of fewer than 25 students.

Obviously, buying a home in a small town can be a mixed bag. If you’re not sure if this is right for you, talk to people who have lived in small towns to learn more about the experience. And, if possible, spend enough time in the city where you plan to move to know what to expect. The more information you have, the more confident you can be in your decision.

Our picks for the best credit cards

Our experts have reviewed the most popular offers to land on the selected choices that deserve a place in your portfolio. These best-in-class cards offer rich benefits, such as big sign-up bonuses, long 0% APR introductory offers, and solid rewards. Get started today with our recommended credit cards.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Back to top button