McAllen, Harlingen most affordable U.S. cities

​​​ARLINGTON, Va. – The Council for Community and Economic Research has named McAllen the least expensive U.S. city in which to live, followed closely by second-ranked Harlingen. 

Out of the 265 urban areas that participated in the third-quarter 2015 Cost of Living Index​, the after-tax cost for a professional/managerial standard of living ranged from more than twice the national average in New York (Manhattan) to over 20 percent below the national average in McAllen.

Rounding out the list of least expensive, in order, are Richmond, Ind.; Norman, Okla.; Ashland, Ohio; Sherman-Denison, Texas; Hattiesburg, Miss.; Idaho Falls, Ind.; Memphis, Tenn.; Jackson, Miss.; and Cookeville, Tenn.

The most expensive places to live, in order, are New York (Manhattan); Honolulu; San Francisco; Orange County, Calif.; Oakland, Calif.; Washington-Arlington-Alexandria DC-Va.; San Diego; Hilo, Hawaii; and Stamford, Conn. 

The Cost of Living Index measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. It is based on more than 90,000 prices covering almost 60 different items for which prices are collected three times a year by chambers of commerce, economic development organizations or university-​applied economic centers in each participating urban area. The composite index is based on six components: housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services.