Feeling like your paycheck just doesn’t stretch as far as it used to? You’re not alone. With housing prices, groceries, gas, and everything in between adding up, many families are looking for new places where their dollars go further. That’s why recent rankings, like the one from GOBankingRates, matter—they reveal the most affordable states for middle-class families to live comfortably in 2025. Let’s break down what makes these states stand out, and how you can use this information to build a better financial future for your family.
What Makes a State Truly Affordable for Families?
Affordability is about more than just lower home prices. It’s the combination of several factors: housing, cost of living (think groceries, utilities, gas), healthcare, and how these stack up against the average family’s income. It’s important to remember that choosing where to live is one of the biggest money decisions you’ll ever make. For example, home prices in Maryland may be higher than in Iowa, but strong incomes help families actually save more money after expenses.
According to the recent GOBankingRates study, affordability boils down to this simple formula: income minus yearly expenses. If you earn a solid paycheck but spend it all on rent and bills, that’s not really affordable. That’s why states like Maryland, Illinois, and Iowa stand out—they balance good pay with reasonable expenses.
“Affordability isn’t just about what you pay for a house—it’s about what you have left over after covering everything your family needs,” notes a financial columnist at GOBankingRates.
Take Maryland, for example. The average home value is $430,883 (a bit higher than the national average), but the typical middle-class family brings home $101,652 annually. After essentials like housing, groceries, and utilities, there’s about $35,655 left for other needs or savings. That’s a strong safety cushion.
Tip: Always compare the local wage to costs—not just home prices. A lower home price may not help much if wages are also lower, so it’s smart to look at both sides of the coin before making a move.
Next steps? Start by calculating your own income and expenses. Check how they might change if you were to move to one of the states from the list. Free online cost-of-living calculators can help you visualize just how far your paycheck could stretch elsewhere.
Top Affordable States in 2025—and What They Offer
Let’s break down some of the most affordable states for middle-class families this year. Each offers unique strengths, but all share one thing: a budget-friendly lifestyle for families seeking value. According to the latest numbers:
- Maryland: Average home value $430,883, median income $101,652, annual cost of living $65,997, leftover savings about $35,655.
- Illinois: Average home value $270,366, median income $81,702, annual cost of living $52,903, leftover $28,799 for the year.
- Iowa: Average home value $219,344, median income $73,147, annual cost of living $47,891, leftover $25,256.
- Minnesota: Average home value $336,241, median income $87,556, annual cost of living $57,585, leftover $29,971.
- Kansas: Average home value $226,851, median income $72,639, annual cost of living $47,741, leftover $24,898.
States like Mississippi, Arkansas, and Alabama get special mention for ultra-low housing and healthcare costs, appealing to families wanting the most bang for their buck. Out in the Midwest, Iowa and Kansas are also drawing attention with low home prices and manageable living expenses.
“You don’t have to sacrifice quality of life to find affordability—the trick is matching your family’s needs with a state’s strengths,” shares a real estate market analyst featured in the report.
Remember: Lower housing costs don’t always mean lower everything. Some states have cheaper homes but higher healthcare, utilities, or taxes—so focus on the full picture.
Ready to try a new zip code? Here are a few steps to take:
- Research several states, not just the cheapest or most advertised.
- List your family’s priorities: schools, job opportunities, healthcare, climate, and more.
- Connect with locals online for inside tips.
- Check rental markets before committing to a purchase, so you can get a feel for the neighborhood and costs.
This big-picture approach helps make sure you’re not just saving money, but actually improving your family’s comfort and opportunities.
Balancing Dollars and Dreams—How to Make the Right Move
It’s easy to focus only on financial numbers when choosing where to live, but affordability should support your family’s overall happiness and security. The truth is, there’s no single “best” state for every middle-class family. Job options, support networks, schools, and even local culture all play a role in your long-term well-being. For instance, families leaving high-cost cities for places like the Sun Belt or Midwest often see their dollars stretch much further—but they also find different climates, lifestyles, and local taxes.
In cities like San Francisco, high earners could buy a home in Austin, Texas, five years sooner than locally thanks to better affordability. Meanwhile, suburbs near big metro areas offer lower prices while keeping some of the benefits of city life—like entertainment and good schools—but with less financial stress.
“Moving isn’t just about saving money—it’s about finding a place where your family can thrive, build a future, and feel at home,” explains a relocation expert interviewed by SFGate.
Here’s how to balance your dollars with your dreams:
- Try before you commit. If you can, rent for a while in your new city or town before buying a home.
- Research work-from-home rules. If you work remotely, check tax and benefit differences between states—it could boost your take-home pay.
- Factor in moving costs. Even affordable homes still require moving expenses, deposits, and setup fees.
- Consider quality of schools and services for your kids.
- Look into local job markets for all earners in your household.
No place is perfect, and every state comes with its pros and cons. Maybe housing is cheaper in Mississippi, but you value Minnesota’s public schools. Kansas may have super-affordable groceries, but you want to be near the East Coast for work travel. Weighing these factors helps families create a satisfying life, not just a cheaper one.
Next steps: Write out what matters most to your family, from cost to community vibes. Start your research with online calculators, and don’t be afraid to reach out to local groups or realtors for honest neighborhood feedback.