The cost of living in America continues to be a challenge and a hot-button issue, 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.
Learn More: The Living Wage a Family of Four Needs in All 50 States
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With that in mind, GOBankingRates recently analyzed the U.S. 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.
Curious whether your state falls on the list? Hoping to see your dream retirement state make the cut? See the 20 most affordable states for middle-class families.
1. Maryland
Average home value: $430,883
Annual cost of living: $65,997
Median middle-class income: $101,652
Leftover savings after median middle-class income: $35,655
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2. Illinois
Average home value: $270,366
Annual cost of living: $52,903
Median middle-class income: $81,702
Leftover savings after median middle-class income: $28,799
Explore More: Here’s How Much Your State Collects on Every Type of Tax
3. Iowa
Average home value: $219,344
Annual cost of living: $47,891
Median middle-class income: $73,147
Leftover savings after median middle-class income: $25,256
4. Minnesota
Average home value: $336,241
Annual cost of living: $57,585
Median middle-class income: $87,556
Leftover savings after median middle-class income: $29,971
5. Kansas
Average home value: $226,851
Annual cost of living: $47,741
Median middle-class income: $72,639
Leftover savings after median middle-class income: $24,898
6. Nebraska
Average home value: $257,719
Annual cost of living: $50,917
Median middle-class income: $74,985
Leftover savings after median middle-class income: $24,068
Find Out: How Much Money Is Needed To Be Considered Middle Class in Every State?
7. North Dakota
Average home value: $268,786
Annual cost of living: $51,775
Median middle-class income: $75,949
Leftover savings after median middle-class income: $24,174
8. Virginia
Average home value: $399,497
Annual cost of living: $61,974
Median middle-class income: $90,974
Leftover savings after median middle-class income: $29,000
9. Pennsylvania
Average home value: $266,510
Annual cost of living: $52,555
Median middle-class income: $76,081
Leftover savings after median middle-class income: $23,526
10. Michigan
Average home value: $238,307
Annual cost of living: $49,407
Median middle-class income: $71,149
Leftover savings after median middle-class income: $21,742
Read More: How Far $750,000 in Retirement Savings Plus Social Security Goes in Every State
11. Ohio
Average home value: $230,208
Annual cost of living: $49,028
Median middle-class income: $69,680
Leftover savings after median middle-class income: $20,652
12. Missouri
Average home value: $246,078
Annual cost of living: $48,770
Median middle-class income: $68,920
Leftover savings after median middle-class income: $20,150
13. Indiana
Average home value: $240,276
Annual cost of living: $49,526
Median middle-class income: $70,051
Leftover savings after median middle-class income: $20,525
14. Texas
Average home value: $301,096
Annual cost of living: $53,907
Median middle-class income: $76,292
Leftover savings after median middle-class income: $22,385
Read Next: How Long $1 Million in Retirement Will Last in Every State
15. Oklahoma
Average home value: $205,109
Annual cost of living: $46,252
Median middle-class income: $63,603
Leftover savings after median middle-class income: $17,351
16. Wisconsin
Average home value: $305,466
Annual cost of living: $55,110
Median middle-class income: $75,670
Leftover savings after median middle-class income: $20,560
17. Louisiana
Average home value: $198,207
Annual cost of living: $45,387
Median middle-class income: $60,023
Leftover savings after median middle-class income: $14,636
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18. South Dakota
Average home value: $302,500
Annual cost of living: $53,778
Median middle-class income: $72,421
Leftover savings after median middle-class income: $18,643
19. Connecticut
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
20. West Virginia
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.
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This article originally appeared on GOBankingRates.com: 20 Most Affordable States for Middle-Class Families in 2025
