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
Also See: How Much You Need To Earn To Be Upper Middle Class in Every State
Discover More: The Money You Need To Save Monthly To Retire Comfortably in Every State
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
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