Mortgage rates are stubbornly high and some everyday groceries are hitting record prices — but living in these states can save you some dough.
A new ranking compared the basic affordability of all 50 US states, and two regions proved to be the most friendly to American wallets.
Southern and Midwestern states swept the top 10 spots, compiled by US News and World Report.
Hot Springs National Park in Arkansas numbers among the affordable state’s attractions. JMendezrf – stock.adobe.com
Mississippi is the second most affordable state, but the residents’ paychecks remain the lowest in the US. Designpics – stock.adobe.comArkansas came out on top with the highest affordability score. The state is first in cost of living and third in housing affordability. The median sale price in its capital city, Little Rock, was just $250,000 in July, according to Redfin — close to $200,000 less than the national median.
The most affordable housing, however, goes to Mississippi. The Southern state took second place in the overall affordability rankings and second in cost of living.
Budget-minded buyers looking for a new place to call home might need to make a few trade-offs, however. Arkansas’ annual crime rates frequently number among the country’s highest, and poor access to health care is a barrier in both Arkansas and Mississippi.
A residential street in West Virginia. The state offers some of the cheapest homes in the country. kosoff – stock.adobe.com
Oklahoma is also wallet-friendly. SeanPavonePhoto – stock.adobe.com
South Dakota rounded out the list as the fifth most affordable state. Jacob – stock.adobe.comAffordability is relative, too, especially when pay is low. Mississippi’s median household income hovers just below $60,000 in 2024, according to the US Census Bureau’s American Community Survey, making its residents the lowest earners in the country.
West Virginia ranked third, thanks to its highly affordable housing. Oklahoma placed fourth. South Dakota rounded out the US News’ top five most affordable states for the Midwest.
The California real estate market is highly competitive and notoriously pricey. Klodien – stock.adobe.com
Hawaii is a historically costly state to call home. espiegle – stock.adobe.comGiven the high cost of living and sky-high home prices, it’s no surprise that California ranked last for affordability, beating out New Jersey and Hawaii.
Eight out of 10 of the country’s priciest metros in the first quarter of 2025 were clustered in the Golden state. It also hosts some of the fastest moving markets in the country, with homes in San Jose and San Francisco selling in less than 30 days.
Housing is historically pricey in Hawaii, and pricey New Jersey’s cost of living continued to climb. New York, unsurprisingly, joined the lower half of the list at No. 45.
