As housing prices continue to soar across the United States, a growing number of renters and first-time homebuyers are turning away from bustling metropolises in favour of more affordable locales. Factors such as rising interest rates, escalating rents, inflation, and stagnant wages are driving Millennials and members of Generation Z to prioritize affordability in their life and career decisions.
While cities like New York and Los Angeles have long been synonymous with high living costs, the issue of affordability now extends far beyond these urban giants. Many states across the country are feeling the pinch, prompting individuals to seek out areas that offer a more wallet-friendly lifestyle.
To assess which states are the most and least affordable, the financial technology company SmartAsset recently calculated the income required for a single adult working full-time to live comfortably in each state. Their analysis applied the 50/30/20 budgeting rule, which allocates 50% of income to necessities like housing and groceries, 30% to discretionary spending, and 20% to savings.
Unsurprisingly, states such as California, Hawaii, and New York emerged as some of the most expensive places to reside. Massachusetts topped the list, requiring an eye-opening salary of $116,022 annually for a comfortable standard of living. This translates to approximately $55.78 per hour, ensuring residents can afford housing, food, and other essentials while still having room for savings and occasional indulgences.
Conversely, West Virginia emerged as the most affordable state, where a significantly lower income of $78,790 per year, or roughly $37.88 per hour, is deemed sufficient for a comfortable lifestyle. However, this figure still exceeds the average income of around $60,000 annually for single, full-time workers nationwide, as reported by the Bureau of Labor Statistics.
For a comprehensive view of how each state ranks in terms of affordability and livability, refer to the detailed list below:
The Salary Required to Live Comfortably in All 50 States:
Massachusetts - $116,022
Hawaii - $113,693
California - $113,651
New York - $111,738
Washington - $106,496
Colorado - $103,293
New Jersey - $103,002
Maryland - $102,918
Oregon - $101,088
Rhode Island - $100,838
Connecticut - $100,381
Virginia - $99,965
New Hampshire - $98,093
Arizona - $97,344
Georgia - $96,886
Alaska - $96,762
Vermont - $95,763
Illinois - $95,098
Delaware - $94,141
Utah - $93,683
Nevada - $93,434
Florida - $93,309
Maine - $91,686
Pennsylvania - $91,312
North Carolina - $89,690
Minnesota - $89,232
Idaho - $88,733
South Carolina - $88,317
Wyoming - $87,651
Texas - $87,027
Tennessee - $86,403
Indiana - $85,030
Montana - $84,739
Kansas - $84,656
Michigan - $84,365
Wisconsin - $84,115
Missouri - $84,032
Alabama - $83,824
Nebraska - $83,699
New Mexico - $83,616
Iowa - $83,366
Mississippi - $82,742
Louisiana - $82,451
South Dakota - $81,453
Ohio - $80,704
Kentucky - $80,704
North Dakota - $80,538
Oklahoma - $80,413
Arkansas - $79,456
West Virginia - $78,790
As housing affordability continues to shape relocation decisions for many Americans, the quest for economic stability and comfortable living conditions remains a paramount concern across the nation.
