It pays to live in small cities. Literally.
As young people flee to large metropolitan areas like San Francisco and New York, some smaller towns are facing labor shortages and dwindling populations.
To remain competitive, these cities are doling out lucrative perks to get people to move there, such as cash handouts, student loan repayments and housing incentives.
While you may not the find the hustle and bustle you’d get in larger towns, the trade-off might be worth it for a shorter commute and a lower rent. Surveys show that smaller cities have far less traffic congestion, making your trip to and from work that much faster.
The cost of living is also cheaper in smaller cities, according to an analysis of the most and least expensive cities for renters by money advice site Earnest. While Los Angelenos fork over a median rent of $2,600 a month, those in Toledo, Ohio pay just $550 per month.
If, like many millennials, you’re still figuring out where you want to settle down, consider these seven cities that will pay you to move there:
Known for its harbor, fresh crabs and the world-renowned Johns Hopkins Hospital, Charm City offers two housing incentives for would-be residents.
First, the Buying Into Baltimore program gives home-buyers a $5,000 forgivable five-year loan. And if you’re game to move into one of Baltimore’s abandoned homes, the Vacants to Value incentive offers $10,000 toward down payment and closing costs.
Got student loan debt? St. Clair County might be the place for you. Located north of Detroit, the Michigan county is targeting young people in their late 20s who have completed college and might be ready to settle down and start their lives.
Dubbed the Come Home Award, this reverse-scholarship will pay students who have completed a degree in a STEAM-related program (science, technology, engineering, arts or math). Those promising to live and work in the county could receive up to $15,000 to make the move.
If you have an eye for architecture, take advantage of this town’s rolling fields and open spaces. Faced with a long-declining population, the community is enticing new residents with free lots of land. Keep in mind that the cost of a plot of land to build on averages $3,140 per acre, according to the United States Department of Agriculture.
To qualify for this program, you must agree to begin construction on the home within 120 days and finish building the home within one year.
Only about 15 percent of Hamilton residents are college educated. Hoping to bolster this number, the city is providing cash incentives of up to $5,000 to young professionals who move there.
To be eligible, applicants must have graduated within the last seven years, preferably from a STEAM program, and demonstrate employment within the city of Hamilton.
With a population of roughly 24,000, this Midwest city needs skilled people to work in factories, warehouses, medical centers and the railroad.
In light of this, lawmakers penned a deal with local employers: The city will match signing bonuses for out-of-town hires, up to $5,000. That’s a total potential signing bonus of $10,000 total.
Grant County may be a small town, but it’s serving up a big incentive to lure young, skilled workers.Through the Grant for Grads scheme, newcomers can receive up to $5,000 for the down payment and closing costs on a home.
If renting is more your style, the city offers a 20 percent reduction on monthly rent payments. The offer is available for minimum lease agreements of 12 months or more at rents equal to or less than what the Department of Housing and Urban Development considers fair market (around $558 for a one-bedroom apartment in Grant County).
Home to Yale University, this New England metropolis is offering up to $80,000 in incentives for new homeowners.
First-time buyers can receive $10,000 in interest-free loans for down payments or closing costs and $30,000 in energy-saving upgrades for the home. If you stay even longer, the city will offer $40,000 for in-state college tuition provided your child graduates from a New Haven public school.
Like this story? Subscribe to CNBC Make It on YouTube!
Don’t miss: 10 brick-and-mortar stores that will match lower prices found on Amazon
