A large part of the conversation during the last election year had to do with rather steeply increased cost of living in America, especially as it pertains to the middle class. Housing costs, mortgage rates and rent levels continue to rise, as do prices at the grocery store and the gas pump. The economic bind on middle-class Americans feels tighter than ever.
With that in mind, GOBankingRates recently analyzed the United States by population, household income, cost of living, median income levels and more, all as a means to calculate the most affordable states in the country for the middle class.
Leftover savings after median middle-class income: $18,643
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Average home value: $430,428
Annual cost of living: $68,066
Median middle-class income: $93,760
Leftover savings after median middle-class income: $25,694
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Average home value: $166,601
Annual cost of living: $44,200
Median middle-class income: $57,917
Leftover savings after median middle-class income: $13,717
Methodology: For this study, GOBankingRates found the most affordable states to live for families in 2025. For each state, GOBankingRates found total population, population ages 65 and over, total households, household median income, civilian unemployment rate, households below poverty line and labor force participation rate all sourced from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from Missouri Economic Research and Information Center and include the grocery, healthcare, housing, utilities, transportation and miscellaneous cost-of-living indexes. Using the indexes and the national average expenditure costs for families, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for Married Couples with Children, the average expenditure cost for each location was calculated. The average single-family home value was sourced from Zillow Home Value Index for December 2024. Using the average home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated. Using the average mortgage and average expenditure costs, the average cost of living was calculated. Using the definition of Middle-Class from Pew Research Center that states middle-class income is two-thirds to twice the median household income, the middle-class income range was calculated. The leftover savings after the total annual cost of living was calculated using the minimum, median and maximum middle-class incomes. The states were sorted by their leftover savings for the minimum middle-class income, representing the most affordable states for the most middle-class families. All data was collected on and is up to date as of Feb. 11, 2025.
