- Typical home value: $166,601
- Yearly living expenses: $44,200
- Average middle-class income: $57,917
- Savings remaining after average middle-class income: $13,717
Methodology: This analysis conducted by GOBankingRates identified the most affordable states for families to reside in during 2025. Data such as total population, individuals aged 65 and over, total households, median household income, civilian unemployment rates, percentage of households below the poverty line, and labor force participation rates were gathered from the U.S. Census American Community Survey. Cost-of-living indexes covering categories such as grocery expenses, healthcare, housing, utilities, transportation, and miscellaneous costs were obtained from the Missouri Economic Research and Information Center. To determine average expenditure costs for families, GOBankingRates utilized these indexes in conjunction with national average expenditure data for married couples with children from the Bureau of Labor Statistics Consumer Expenditure Survey. The average home value was derived from the Zillow Home Value Index as of December 2024. With the average home value in mind, a calculation was made assuming a 10% down payment, using the most recent average 30-year fixed mortgage rate sourced from Federal Reserve Economic Data. This led to the determination of the average mortgage amount. Subsequently, combining the average mortgage with average expenditure costs yielded an overall average cost of living. The definition of Middle-Class income, as defined by the Pew Research Center, which states that this income bracket typically ranges from two-thirds to twice the median household income, helped calculate the middle-class income range. Leftover savings after accounting for the annual living expenses were computed using minimum, median, and maximum middle-class incomes. The states were then ranked based on the leftover savings calculated using the minimal middle-class income, showcasing those deemed most affordable for the majority of middle-class families. All collected data is current as of February 11, 2025.
