The 10 most affordable states in the US in 2025 — and the 10 least affordable

sunset of Los Angeles downtown skyline and palm trees.
Downtown Los Angeles, California skyline.

Marek Masik/Shutterstock

  • Prices of groceries and housing are going up across the US.
  • US News & World Report ranked all US states based on their affordability.
  • It ranked Arkansas as the most affordable state in the US, and California as the least affordable.

From groceries to housing, living is getting more expensive, but some states are feeling the effects of rising prices more than others.

While states like Hawaii and California are seeing increases in housing costs, others like Florida are experiencing falling real-estate prices thanks to rising inventory and insurance costs.

US News & World Report recently ranked all 50 US states by affordability, using US Bureau of Economic Analysis data to determine each state's housing affordability and cost of living.

The list is just one part of US News & World Report's comparison of US states, which it ranks by categories including opportunity, education, healthcare, and fiscal stability, among others. These categories ultimately contribute to its best states overall ranking. For the full report and rankings, see here.

Here are the 10 most affordable states in the US, followed by the 10 least affordable, per US News & World Report.

The below list also indicates where each state landed on the report's best states overall ranking, and includes the median income in each state, using the most recent data from the US Census Bureau's American Community Survey, which estimated median incomes in 2024.

1. Arkansas
Little Rock, Arkansas, skyline on the river at twilight.

Sean Pavone/Shutterstock

Cost of living ranking: 1

Housing affordability ranking: 3

Median household income: $62,106

In US News & World Report's ranking of best states overall — of which affordability is one consideration — Arkansas comes 44th.

2. Mississippi
Jackson, Mississippi, skyline over the Capitol Building.

Sean Pavone/Shutterstock

Cost of living ranking: 2

Housing affordability ranking: 1

Median household income: $59,127

In the best states overall ranking, Mississippi fares less well, ranking 48th.

3. West Virginia
charleston, west virginia
West Virginia was ranked as the second most affordable US state.

Mihai_Andritoiu/Shutterstock

Cost of living ranking: 8

Housing affordability ranking: 2

Median household income: $60,798

West Virginia was ranked 46th in the best states overall ranking.

4. South Dakota
Aerial View of Sioux Falls, South Dakota at Sunset
Sioux Falls, South Dakota

Jacob Boomsma/Shutterstock

Cost of living ranking: 3

Housing affordability ranking: 6

Median household income: $76,881

South Dakota came 8th in the overall best states ranking.

5. Oklahoma
Oklahoma City skyline
Oklahoma City, OK located in Oklahoma County

Sean Pavone/Getty Images/iStockphoto

Cost of living ranking: 4

Housing affordability ranking: 7

Median household income: $66,148

The report ranked Oklahoma the 42nd best state overall.

6. Louisiana
An aerial view of Baton Rouge, Louisiana.
Baton Rouge, Louisiana.

Jacob Boomsma/Getty Images

Cost of living ranking: 5

Housing affordability ranking: 8

Median household income: $60,986

The state was ranked last on the best states overall list.

7. Iowa
Aerial View of the Des Moines, Iowa, Skyline at Sunset
Des Moines, Iowa.

Jacob Boomsma/Shutterstock

Cost of living ranking: 7

Housing affordability ranking: 9

Median household income: $75,501

Iowa is the 14th best state overall, per US News & World Report.

8. Alabama
Birmingham, Alabama, downtown city skyline.

Sean Pavone/Shutterstock

Cost of living ranking: 10

Housing affordability ranking: 4

Median household income: $66,659

However, Alabama comes 45th in the best states overall ranking.

9. North Dakota
Fargo, North Dakota

Jacob Boomsma/Shutterstock

Cost of living ranking: 6

Housing affordability ranking: 11

Median household income: $77,871

Oregon is the 12th best state overall, when considering all metrics, per the report.

10. Kentucky
Colorful bridges lead into the buildings and streets of the downtown city center of Louisville, Kentucky.
Louisville, Kentucky.

ChrisBoswell/Getty Images

Cost of living ranking: 14

Housing affordability ranking: 5

Median household income: $64,526

Kentucky is the 39th best state overall.

41. Maryland
baltimore skyline

Dee Liu/Getty Images

Cost of living ranking: 42

Housing affordability ranking: 42

Median household income: $102,905

Maryland was named the 20th best state in the report's overall rankings.

42. New Hampshire
manchester new hampshire
New Hampshire is the ninth-least affordable state in the US.

NayaDadara/Shutterstock

Cost of living ranking: 44

Housing affordability ranking: 40

Median household income: $99,782

The state was also ranked as the second-best state overall by US News & World Report.

43. Colorado
Denver downtown
Denver, Colorado, is growing as a business destination.

Aerial_Views/Getty Images

Cost of living ranking: 37

Housing affordability ranking: 48

Median household income: $97,113

Colorado was named the 11th best state overall by the report.

44. Florida
Miami Beach, Florida, aerial view, Indian Creek Biscayne Bay Allison Island La Gorce Island city skyline.
Miami Beach, Florida, aerial view, Indian Creek Biscayne Bay Allison Island La Gorce Island city skyline.

Jeffrey Greenberg/Universal Images Group via Getty Images

Cost of living ranking: 40

Housing affordability ranking: 44

Median household income: $77,735

Florida ranked 6th best state overall when considering affordability and other factors.

45. New York
A view of the New York City skyline with the Brooklyn Bridge in the middle ground.
New York City.

Evgeny Karandaev/Shutterstock

Cost of living ranking: 45

Housing affordability ranking: 43

Median household income: $85,820

New York was named the 22nd best state overall.

46. Washington
Seattle, Washington downtown skyline.
Seattle, Washington downtown skyline.

Sean Pavone/Shutterstock

Cost of living ranking: 47

Housing affordability ranking: 45

Median household income: $99,389

Washington came 10th in the best states overall ranking.

47. Massachusetts
An aerial view of the Charles River in Boston.
The Charles River in Boston.

Cavan Images/Getty Images/Cavan Images RF

Cost of living ranking: 46

Housing affordability ranking: 47

Median household income: $104,828

US News & World Report named Massachusetts the 9th best state in its overall ranking.

48. Hawaii
An aerial view of Waikiki Beach in Hawaii with Diamond Head in the background.
Hawaii has the longest life expectancy in the US.

James Kirkikis/Shutterstock

Cost of living ranking: 48

Housing affordability ranking: 46

Median household income: $100,745

The state ranked 28th in the overall ranking.

49. New Jersey
Aerial view of Hoboken, New Jersey, with the New York City skyline in the background.
New Jersey was ranked the third-happiest state in the US.

FotosForTheFuture/Shutterstock

Cost of living ranking: 49

Housing affordability ranking: 49

Median household income: $104,294

New Jersey came 19th in US News & World Report's best states overall ranking.

50. California
An overview of downtown Los Angeles.
Los Angeles.

Michael Lee/Getty Images

Cost of living ranking: 50

Housing affordability ranking: 50

Median household income: $100,149

In the best states overall ranking, California is ranked No. 37.

Read the original article on Business Insider


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