Memphis has a low cost of living. When you compare the city with the national average, it is 24% lower. Your money will come a long way if you live here. The Good Side If there is one thing you have to know right now, it is that the housing costs in Memphis are way below the national average. As of this writing, housing costs are 62.9% more affordable than the national average. That equates to a median home cost of US$123,800. This amount is lower compared to the national average of US$291,700. The same is accurate with food, groceries, transportation, and utility costs. Food and groceries are 6.7% cheaper here compared to the national average. Transportation costs in Memphis are 5.5% more reasonable, while utility costs are 3.7% more affordable than the national average. The low cost of living in Memphis is one of the primary reasons people move here. The Bad Side Now, this may not be overly bad. The cost of healthcare is still lower in Memphis than the national average. However, if you take a look at the numbers, it is about 1.6% lower than most major cities in the country. It only means that with the rising prices due to inflation and world events, this can go beyond the average in a few years.