With the cost of living on the rise, many Americans are on the hunt for the cheapest places to live in the U.S. that still offer a high quality of life. To help in the quest for the perfect place to call home, Empower—a financial services company—has issued a new report with the 20 best (and most affordable) cities to live in the United States.

To come up with the list, Empower conducted a survey of 1,000 Americans and also analyzed data from a number of sources, looking at home affordability (based on median home prices from Realtor.com and median rent prices from Zumper), cost of living (AdvisorSmith), tax friendliness (SmartAsset), percentage of days per year with sunshine (CurrentResults) and more.

Compare this list to the best (and cheapest) places to live in America in 2022, as well as the cheapest places to live in the U.S. in 2021.

Sioux Falls, South Dakota was named the most affordable place to live in the U.S. in a new report.

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Most Affordable U.S. Cities for Working Adults

Topping the list as the best affordable place to live in the U.S. is Sioux Falls, South Dakota, set along the banks of the Big Sioux River. While the average home in Sioux Falls is a little higher than some of the other spots on the list ($313,630, according to Zillow), this Midwestern city ranks first, thanks to a winning combination of factors that includes a reasonable cost of living and a healthy employment rate. Sioux Falls also offers a mix of urban amenities and natural beauty, including a network of scenic walking, hiking and biking trails.

Next up on the list is Abraham Lincoln’s former home: Springfield, Illinois, which has a mix of affordability and culture, thanks to numerous museums and historical sites. According to Zillow, the average home in Sioux Falls is $146,404. Wichita secures the third spot on the list, thanks to its low cost of living, family-friendly atmosphere and an average home cost of $187,171.

Beyond the top three, the list of most affordable cities for working adults includes a range of options. Virginia Beach, Virginia offers a coastal lifestyle with top-notch healthcare and cultural activities. Des Moines combines affordability with a thriving job market and a vibrant cultural scene. Oklahoma City welcomes with affordable housing and a lower cost of living. And Nebraska had two cities on the top 10 list—Lincoln and Omaha—thanks to their affordable living conditions.

Las Vegas, Nevada is the cheapest place in the U.S. for retirees.

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Most Affordable U.S. Cities for Retirees

Empower’s report also identifies the most affordable U.S. cities for retirees. Topping the list is Las Vegas, renowned for its entertainment, sunshine and tax-friendly policies. It offers top-quality healthcare, a thriving senior community and a wide range of entertainment options. According to Zillow, the average home in Las Vegas is $399,512.

Pittsburgh, Pennsylvania, secures the second position for retirees, thanks to a strong focus on healthcare quality and accessibility. Home to renowned medical institutions, Pittsburgh offers healthcare access for general care and specialized health concerns. (A caveat: Retirees should consider Pennsylvania’s death taxes when planning an inheritance.) According to Zillow, the average home in Pittsburgh is $225,479.

Sioux Falls, South Dakota, once again makes the list, coming in at number three, thanks to its affordability for both working adults and retirees. It offers no state income tax, relatively low property taxes and no estate or inheritance tax. The city also has excellent air quality and a picturesque natural environment.

According to a new report, Denver is the place that Americans dream of living.

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Dream Destinations: Where Americans Want to Live

Beyond affordability, the report also delves into the places where Americans dream of living. When it comes to choosing a place to call home, cost of living tops the priority list for working adults. A low cost of living can help individuals save more and build their nest egg. Additionally, being close to family, safety and employment opportunities were essential factors for this group.

As for dream living locations, Denver is the most desired place to live (17%), followed by San Diego (16%) and New York City (15%).

Interestingly, these locations didn’t fare well in the list of most affordable places to live: Denver earned its popularity due to its strong employment rates and income levels but fell behind in cost of living and home prices, landing at number 66 on the list of most affordable cities. San Diego came in at number 105. And New York City didn’t make the affordable list at all—due to a steep cost of living, soaring rent costs and home prices and overall high expenses.

Read on for the lists of the cheapest cities to live in the U.S., the most affordable places to live for retirees and the places that Americans dream about living.

Springfield, Illinois is the second cheapest place on the list in a new report on the most … [+] affordable (and best) places to live in the U.S.

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Ranked: The 20 Cheapest U.S. Cities

1. Sioux Falls, South Dakota
2. Springfield, Illinois
3. Wichita, Kansas
4. Virginia Beach, Virginia
5. Des Moines
6. Oklahoma City
7. Lincoln, Nebraska
8. Anchorage, Alaska
9. Omaha
10. McAllen, Texas
11. Indianapolis
12. Lexington, Kentucky
13. Lubbock, Texas
14. Columbia, Missouri
15. Clarksville, Tennessee
16. Peoria, Illinois
17. Charlotte, North Carolina
18. Kansas City, Missouri
19. Fayetteville, Arkansas
20. Huntsville, Alabama

Rachel Carson Bridge (aka Ninth Street Bridge), which spans the Allegheny river in Pittsburgh, … [+] Pennsylvania, the second best place for retirees to live.

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Ranked: Cheapest U.S. Cities for Retirees

1. Las Vegas
2. Pittsburgh
3. Sioux Falls, South Dakota
4. Detroit
5. Philadelphia, Pennsylvania
6. Tallahassee, Florida
7. Reno, Nevada
8. Gainesville, Florida
9. Grand Rapids, Michigan
10. Columbus, Georgia
11. Augusta, Georgia
12. Spokane, Washington
13. Jacksonville, Florida
14. Port St. Lucie, Florida
15. Colorado Springs
16. Memphis
17. Richmond, Virginia
18. Tampa
19. Orlando, Florida
20. Virginia Beach, Virginia

San Diego, which ranked number two on the list of the places Americans dream of living.

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Ranked: 15 Dream Destinations

1. Denver
2. San Diego
3. New York City
4. Charlotte, North Carolina
5. Seattle
6. Raleigh, North Carolina
7. Austin, Texas
8. Tampa
9. Los Angeles
10. Portland, Oregon
11. Nashville
12. Miami
13. Colorado Springs
14. Chicago
15. Boston

Read More:

• Report Ranks America’s 15 Safest (And Most Dangerous) Cities For 2023

• These Places In The U.S. Will Pay You As Much As $15,000 To Move There