Toledo ranks at top of list of easiest cities for saving money

The city of Toledo has ranked at the top of America’s easiest cities for saving money.

FinanceBuzz ranked 125 cities with populations over 200,000 by analyzing recent data from the U.S. Census Bureau, Transunion, and the Federal Reserve to come up with the rankings.

According to FinanceBuzz, Toledo’s cost of living is the second lowest of cities in its analysis, indicating that life is very affordable in Toledo. The city also ranks in the top three in terms of lowest median credit card debt, lowest rent costs relative to income, and lowest mortgage costs relative to income.

Toledo has a median income of $46,637, with rent as percentage of income at 22 percent, mortgage as percent of income 27 percent, average effective tax burden at 18.05 percent, debt-to-income ratio of 1.08 percent, and median credit card debt at $2,220.

At the bottom of the list was Oxnard, Calif. It ranked the worst because of a high cost of living. Its median income is $46,191; rent as a percentage of income, 51 percent; mortgage as a percentage of income, 63 percent; average effective tax burden, 20.63 percent; debt to income ratio, 2.5 percent; and median credit card debt, $2,684.

Toledo Mayor Wade Kapszukiewicz was pleased by Toledo’s top rank.

“Toledo’s strategic advantage right now is our affordability, and this ranking is yet another metric that demonstrates the financial advantages of living here,” said Mr. Kapszukiewicz. “Slowly, but surely, the word is getting out that people can enjoy access to world-class amenities in Toledo without breaking the bank.”

City Councilman Mac Driscoll agreed.

“It’s something we should market to attract people and businesses to come here. Not only is it affordable, but we have the best parks and cultural amenities. If people come here, they can really get ahead,” said Mr. Driscoll.

The base costs of housing -— rent and homeownership — have increased substantially over the last five years and the subsequent increase in wages nationally have not kept pace to maintain affordability, said Billy Horn, owner and mortgage consultant of Savage Mortgage Services. The Toledo area is one of the most affordable areas to live as this disparity has not hit Toledo as hard.

“We are still feeling the crunch of rising rents, home prices, and the cost of materials but, on a percentage basis, the cost of housing takes less of a bite of our paychecks as compared to higher cost areas. When housing costs take too big of a chunk of our monthly income, it leads to the rise in other consumer debt,” Mr. Horn said.

Being named the best place to save money is a testament to Toledo’s affordability and economic resilience, said Wendy Gramza, president and CEO of the Toledo Regional Chamber of Commerce.

“Our region is dedicated to creating opportunities for financial growth and stability, making it an ideal place for individuals to start and build businesses and careers, and for families to thrive,” she said.

The top rank is definitely an improvement over WalletHub’s recent list of “Best run cities in America,” which gave Toledo an overall rank of 64 out of 148 of the largest cities in the United States.

WalletHub compared the operating efficiency of cities to show which are managed best. The quality of the services residents receive was contrasted with the city’s total budget to determine how well city officials manage and spend public funds to come up with its list.

Toledo was ranked at the bottom of the list at 141 for its quality of city services.

“The two rankings are the opposite side of the same coin,” said Mr. Kapszukiewicz. “Because Toledo is so affordable, our tax rates don’t generate the same revenues they would in other cities. Thus, we spend less on some city services than other cities with the same tax rates.”

Toledo doesn’t have a spending problem, he added, but a revenue problem.

“We spend less than any other large city in Ohio on city services — even though our tax rates are exactly the same. So while our affordability makes Toledo an attractive place to generate wealth, it also makes it harder for city and county governments to provide services.”

Mr. Driscoll, who is a member of city council’s Regional Growth, Development & Small Business Enterprise Committee, agrees.

“We have had a serious population loss over the years. We have an aging infrastructure and dwindling tax base to pay for it. It does make operations inefficient,” he said. “We do what we can with what we have. We have a high poverty rate. We just don’t have the tax revenue to spend like some of the other communities do,” he said. “We do what we can with what we have.”