12 ways to decide where you should live

It can be tough to decide where you want to live. Plenty of appealing choices abound and could potentially be a strong fit.

This big decision can be heavily influenced by how much home you can afford. Knowing the right questions to ask yourself can help you be aware of your priorities and help you land on the right choice.

Here, we'll walk you through the top questions to ask yourself during your search to help you narrow down your search and calm any fears. In turn, you'll feel at greater ease and self-assured at landing on the best choice for you and your family.

Questions to ask before deciding where to live

Let's walk through the typical kinds of questions you'll want to mull over before getting into the details of shopping for a house.

12 factors to consider when choosing where to live

Let's look at the major factors that will influence your decision on where to live. We get that some things might be totally out of your control – like the cost of living and real estate markets. However, getting a birds-eye view at all the aspects you'll want to consider can help you feel assured that you're making a sound choice:

1. Your housing budget

Your housing budget probably tops the list of factors to fold in. Without a housing budget, you'll be hard-pressed to know what neighborhoods and the types of places you can reasonably afford.

Budgeting for new housing boils down to whether you are renting or buying. When you rent, you're looking at fewer expenses in general. However, you'll still need to factor in relocation fees like moving costs and a security deposit. You'll also need to be mindful of other expenses, such as purchase of new furnishings for your new place.

If you're thinking of buying a home, you'll need to figure out how much of a home loan you can afford. The median price of a home in the country stands at $422,400.

On top of your monthly mortgage payments, you'll need to consider property taxes, homeowners insurance, the cost of maintenance and repairs. If you're in a townhouse or condo, you might be financially on the hook for HOA fees.

Making the most of calculator tools can help you decide if you should rent or buy, and where to live. For example, a mortgage calculator to assess how much house you can afford, or a cost-of-living calculator to gauge how far your take-home pay will go in two places.

2. Cost of living

The cost of living is how much money you need to cover your essential household expenses. This can change depending on where you live – and also can change over time. For example, some parts of the country and cities are known to have a higher cost of living, while others have a lower cost of living.

To research the cost of living in areas you're most curious about, you can look at reliable, longstanding sources of data – think the Bureau of Labor and Statistics' Consumer Price Index, which reveals the 12-month change across categories, like food, housing, and transportation. Another sound source is Numbeo, which is the world's largest cost-of-living database.

These online comparison tools can be eye-opening. By looking at data and comparing the cost of living in different cities or parts of the country, you can figure out how much moving can impact what you can afford.

For example, data from the Economic Research Institute (ERI) reveals that the cost of living in San Francisco is 43.8% higher than the national average, while the cost of living in Austin, Texas is 2.4% higher.

You can use a cost-of-living calculator to figure out how much you'll need to cover the basics in one country versus one that you're interested in moving to.

It might also be a good idea to talk to friends or family who live in the area. They can give you insights and perspectives that data cannot. If you have shared interests, they can also talk about specific experiences and costs that are specific to you.

3. Local real estate markets

If you're considering buying a home in a new area, it's a good idea to keep in mind how local real estate markets can vary. Factors that impact a local real estate market include housing inventory, interest rates, market trends, and population growth.

One real estate market you'll find to be a buyer's market, which is when there are more homes for sale than prospective buyers. In other words, supply is high and demand is low. Buyers might be able to scoop up price reductions and have more time to shop around. In a seller's market, the reverse rings true. You'll find fewer homes than what's desired. In turn, there's greater competition and bidding wars might be the norm.

To decide on a market that's in sync with your needs and budget, figure out what you can reasonably afford. You can also sit down and jot down criteria and preferences into three main buckets: Your must-haves, nice-to-haves, and can-do-without buckets.

4. Job opportunities

Your career and industry you're in can play a role in where you chose to live. While some jobs are remote, you might be able to land a job in another area, even after you move. Or, you might be able to keep your current work-from-home job.

That said, it's a good idea to research salaries and industry trends. You can find this information on the Bureau of Labor Statistics (BLS) and job sites like Glassdoor, Indeed, and Salary.com. If you're a remote worker, some workplaces have municipality tax credits.

Another consideration to consider is how close you are to nearing your retirement. If you're looking to buy a home for retirement, you'll want to consider what your budget and needs are in your new place. And if you're planning to retire in a few years, some states are more tax-friendly for retirees than others.

When you relocate, some employers offer relocation bonuses. These are one-time, lump sums an employer might offer to cover moving expenses and security deposits.

5. Rural vs. suburban vs. urban

Whether a rural, suburban, or urban area is the best lifestyle fit for you depends on preferences and goals. All three areas have their own pluses and minuses.

For example, a rural area can have a lower cost of living, and offer more peace and quiet. However, there usually are fewer amenities, fewer schools, and you'll likely need to trek for culture and entertainment.

Another advantage to living in a rural area is a USDA loan, which features no down payment and no limit on gift funds. They're designed for low- to moderate-income households to be able to afford homes in rural areas. You can use a USDA affordability map to see which parts of the country are eligible for a USDA loan.

Suburban areas tend to have family-friendly neighborhoods with access to schools and education, libraries, and parks. Downsides can include longer commute times and fewer places to dine.

An urban area can be filled with culture and walkable neighborhoods with access to public services and plenty of dining options to choose from. The cons of urban life include greater noise and pollution, high-traffic areas, and usually have a higher cost of living.

Whether it's urban, rural, or suburban, you can also look at the fastest-growing cities in the U.S. They can be more affordable with a lower cost of living.

6. Outdoor activities

Another factor to mull over is the type of activities you might want from where you live. For example, winter sports or perhaps areas where you can enjoy a picnic in the park. Do you like botanic gardens, nature walks, or spending sunny days at the beach?

If you live in an urban or suburban area, some HOAs cover the maintenance of outdoor amenities – think pools and parks. To prioritize these wants and needs, think about what kinds of outdoor activities you currently enjoy. Which types of recreational activities do you travel regularly for? That can help you determine what to put at the top of your list.

7. Climate and weather

The climate and weather of the area you'll move to can influence everything from the industries to your career to day-to-day living. Plus, growing concerns about climate change can mean giving serious thought to whether you'll need hazard insurance. Hazard insurance is a type of coverage that falls under a homeowners insurance policy that can safeguard you against the damage from natural events such as hail, fires, and severe windstorms.

Doing your homework can help you decide what kind of coverage might be needed in an area – and understand the risks and costs of moving there.

If you're buying a house in a flood zone, you can use a flood map. This helps you know which high-risks areas are most prone to floods. If you're thinking of buying in California, sellers are required to provide you with a natural hazard disclosure (NHD) report so you're clued in to the known risks of a property.

8. Safety

Safety is a concern no matter your situation, but it especially comes to play if you live alone, are older, or have small children.

A good place to start is to research the safety of specific neighborhoods. You can also look into the safest cities in the U.S. in your search. You'll want to consider the rate of car accidents and pedestrian safety. You can look into safety metrics like an area's car accident data and crime rates by tapping into reliable tools like AreaVibes.com.

When thinking about safety, factor in how likely you'll walk alone at night, and if there are ample crosswalks with flashing signs and lights at the crosswalk entrances. If you're thinking of moving to an urban area, what is the police response time?

9. Education systems and child care

If you have young children, it's important to look into the affordability and availability of childcare and education. Helpful tools can include ChildCare.gov or a Child Care of America's Child Care Resource & Referral (CCR&R) Organization search. Another good place to check is community groups on social media or Nextdoor.

To look into schools, tools like School Accountability Report Cards, the National Center for Education Statistics' search for public schools, and community groups can also be helpful.

One thing to note: Education can heavily influence how much you pay in property taxes. It turns out that 45% of K – 12 revenue comes from local governments – and 80% of the local share is from property taxes.

10. Transportation options 

The transportation options at your disposal can vary widely across the country and the area you live in. For example, a suburban area might have longer commute times and heavier reliance on cars, versus urban areas – with the rise of mixed-use properties – can help boost walkability and make it easier to use public transit.

The area you live in can impact your access to amenities and your kids' ability to get to and from school. You might have to drive your child to school every morning, or they might be able to safely and conveniently take the school bus, walk, or make use of public transit.

You can research walkability and transit schools by using filters on real estate search platforms like Redfin.

11. Proximity to family and friends

Factors that impact where you want to live aren't merely related to financial, logistical and practical reasons. They can also include how close you are to family and friends. Maybe you'll be raising children and would like to enlist the help of your loved ones. Or you anticipate caring for aging members of your family.

You'll want to factor in cultural considerations, holidays and special occasions. When you carefully weigh the pros and cons of this decision, such as talking to family members about how to meet career or financial goals without moving too far away – it can help you glean insights and perspective on others' expectations, needs, and wants. That way, you can communicate and make sure you're on the same page.

12. Your plan for the future

As a home is one of the largest, most important purchases you'll likely make, it's mission crucial to consider how it plays into your future plans. The reality is that mortgages are often years-long commitments. And even if you can choose an adjustable-rate mortgage (ARM) or sell down the line, buying a home can tie up your finances.

Questions you can ask yourself: How will homeownership impact your monthly budget, savings, short- and long-term goals? Take a look at your finances to figure out how much money you need to shore up to buy a house.

How a real estate agent can help you decide where to live

If you have your preferences narrowed down to a town or city but need help deciding where in that town or city you should live, a skilled real estate agent can help you find the right neighborhood for your needs.

An agent with deep knowledge of an area and its real estate market can benefit you immensely. They can tell you every detail about each neighborhood and will personalize their neighborhood and house selections based on the factors that will likely affect your decision.

The bottom line: Choosing where to live takes time

In figuring out how to decide where to live, including the full range of factors can help determine where your priorities land, and which options are the best fit. If you're ready to start shopping for a home, you can get preapproved for a home loan with Rocket Mortgage®.