‘I Moved From California to the Midwest—and Now Save $46,000 a Year’

After living in Los Angeles for 22 years, my husband and I moved to Joplin, MO, in 2021. Going from a huge California city to the heart of the Midwest was a shock in many ways, but one of the biggest—and best—surprises was how much money we save.

We had decided on a change of scenery because our daughter had graduated from high school and left the nest, and my office job had gone remote. We were also eager to be free of the escalating bills that had been strangling our finances for over two decades. We were hoping that living in the Midwest would be more affordable.

We were in for a pleasant surprise.

How much we saved on housing

When we moved to Missouri, our monthly expenses plummeted to about a third of what we’d been paying in California.

Our most sizable savings were for housing. Homes in Joplin, for instance, are typically listed for $224,950. Los Angeles dwellings go for more than five times as much, at $1.23 million.

In essence, we traded a  $4,012 monthly mortgage payment for nearly a third of that, at $1,349.

Another massive change? Our mortgage is now a 15-year note instead of a 30-year note. Bonus: Our new house is bigger by 900 square feet.

At the end of the day, swapping mortgages added up to a savings of $31,956 per year.

Indeed, California’s notoriously high housing costs have prompted many to move out of state to more budget-friendly areas like the Midwest, and the savings are substantial.

“In July 2024, the median listing price in Missouri was 60% below California’s median listing price and 30% below the national median,” says Hannah Jones, Realtor.com® senior economic research analyst.

How much we saved in living expenses

Although our new housing costs represent a large chunk of savings, we’ve been amazed by how much cheaper other things are, too. Here’s a breakdown of the top ways we save.

Property taxes

California: $7,895 per year
Missouri: $1,504 per year
Annual savings: $6,391

Earthquake insurance

California: $681
Missouri: No longer needed
Annual savings: $681

Auto insurance

California: $407 per month
Missouri: $243 per month
Annual savings: $1,968

Pet insurance

California: $118 per month
Missouri: $54 per month
Annual savings: $768

Wi-Fi costs

California: $106 per month
Missouri: $54 per month
Annual savings: $624

Gas prices

California: $400 per month
Missouri: $40 per month
Annual savings: $4,320

These savings were much larger than we anticipated, but we were coming from America’s most expensive state after all.

According to regional price parity data, which compares the price of goods state to state, “California has the highest price levels of all U.S. states, while Missouri is among the most affordable,” says Jones.

How salaries stack up in both states

“The median household income in Missouri was $65,000 in 2022 compared to $92,000 in California and $75,000 in the U.S. on average,” says Jones.

That said, since living and housing expenses in Missouri are lower, too, median-income earners in the Show-Me State can comfortably make ends meet and have a roof over their heads. Californians, however, can make a bundle but still not be able to afford a house or a comfortable lifestyle.

“A median-earning household in Missouri could afford a median-priced home in the state,” says Jones. “The same cannot be said about California.”

What isn’t cheaper in the Midwest

But not everything in the Midwest is cheaper.

For one, grocery costs are about the same in Missouri as in California. We spend about $150 a week for two people. One big drawback of living in a smaller town is that I don’t have the same variety of grocery stores I did in a huge metro like L.A.

Surprisingly, utilities are a little more expensive in Missouri. In California, we paid an average of $389 a month. In Missouri, we pay $9 more ($398) a month, which includes charging our hybrid car. That’s an additional $108 a year.

Home insurance was also cheaper in Cali, at $1,188 versus Missouri’s $2,179 per year. However, CA’s lower costs came with a much higher deductible.

In Missouri, residents additionally have to pay “personal property tax,” which is based on the value of taxable personal property such as boats and cars, costing us around $500 a year. That tax doesn’t exist in California.

How much we save living in the Midwest

When all is said and done, my total annual savings is a whopping $46,100.

I think it’s even more, but since other savings and expenses are less quantifiable, I didn’t factor those into the grand total. For example, I don’t have to buy annual plane tickets to see my extended family anymore since they’re now only a four-hour drive away.

We’re also paying less on credit card interest because we’re not charging things here to make ends meet like we did in California.

Missouri’s state income tax for our tax bracket is 4.95%, while California’s is 9.3%, which means we save even more at tax time.

But in terms of additional expenses, a trip to the beach is now more expensive, obviously. And I travel more these days, at least partly because I miss being in a big city.

What I miss about Los Angeles

The food options in Missouri are more limited than what I’m used to, and entertainment options are also in short supply.

I miss attending concerts at venues like the Hollywood Bowl or the Greek Theatre. Now, I have to travel to bigger nearby cities to see concerts.

However, traffic isn’t as heavy here, so I can get to Bentonville, AR, or Tulsa, OK, in roughly the same time it took me to drive from Glendale to Santa Monica.

And I must admit: Things like movie tickets, dinners, and cocktails are way cheaper in the Midwest than on the West Coast, so date nights became a lot less spendy after our move.

According to the U.S. Census via USA Today, the average restaurant spending in Missouri for a two-week period in June 2024 was $102.50. The median in California during that same period was $140.29.

Was moving from California to the Midwest worth it?

Even though it hasn’t been easy to move away from everything we know, I am much less stressed in Missouri without the traffic and pressures of California to contend with.

My husband was able to open a bar here called The Living Room, which would have been cost-prohibitive in California, so it’s fun to have more financial freedom to follow your dreams.

A lot of the money we’ve saved has gone toward paying for our kids’ college tuition, which was something I’d always worried about being able to cover in California.

All in all, moving to the Midwest has been a great financial decision for us, and I can sleep easier at night knowing life is so much more affordable here. I’m finally moving forward financially instead of just trying to keep my head above water, and it’s about damn time.