The most affordable cities to live in the United States (and the most expensive)

A panorama of Detroit, named the most affordable city to live in the United States

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Does your list of resolutions for 2025 include finding a place where you can save money while still enjoying a great quality of life? You are not alone. With the cost of living increasing, many Americans are looking for the most affordable cities to live in the United States.

To help, online bill payment platform Doxoan has released its 2024 annual report on household spending in America's 50 largest cities, revealing the most affordable (and most expensive) places to live in the United States. Compare this to another recent report on the best places to live in the United States, where affordability is also a factor to consider.

The Doxo report is based on real bill payment data, detailing the average monthly costs of 10 essential household bills, including rent, utilities and insurance. It also introduces the Cost of Bills Index (COBI), which compares cities to the national average.

The annual Doxos report on household spending in the 50 largest U.S. cities reveals the cost of living for Americans based on actual bill paying activity in more than 97% of U.S. ZIP codes, providing consumers with complete visibility into average household spending across the country, Liz Powell, senior director of Insights. at Doxo, told me in an interview.

According to the report, the average American household spends $2,126 per month on essential bills. Nationwide, the average household spends 34% of its income on essential bills, up 4% from 2023, as inflation continues to impact U.S. consumers. However, these costs vary greatly by location.

Most Affordable Cities to Live in the United States: The Winner

This year, Detroit, Michigan is the most affordable city for the third year in a row, with average monthly spending of $1,640, 23% less than the national average. Two other Ohio cities come next, with Cleveland in second place, followed by Dayton. The three most affordable cities remain exactly the same as last year.

A view of Monroe Avenue, in the heart of Detroit's Greektown neighborhood.

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One thing to note: Although the cost of living in Detroit is low, household bills account for a significant portion of the median income, which is $37,360 per year. In Detroit, household bills account for 53% of household income, making it an ideal city for those seeking a lower cost of living, but also highlighting economic challenges, Powell says.

Despite rising inflation, Detroit's average monthly spending has also remained relatively stable, solidifying its position as the most affordable city in the rankings.

Determining the most expensive cities in the United States

On the opposite end of the spectrum is San Jose, California, in the heart of Silicon Valley, which tops the list of the most expensive cities in the United States. Here, residents pay an average of $3,695 per month in household bills: 74% above the national average. .

But it's not all bad news: In the heart of Silicon Valley, with a thriving job market and beautiful weather, San Jose has several qualities that make it an attractive place for Americans to live if they can allow for a higher cost of living, says Powell.

A view of San Jose, California, the most expensive city in the United States

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This year, the second most expensive city is New York, followed by Boston and San Francisco. According to Powell, the rankings haven't changed much since Doxo began writing this report in 2022. While the same four cities top the list of most expensive cities in 2023 and 2024, the order has changed slightly this year, she said.

The Midwest leads in affordability. Pictured here: Indianapolis and Monument Circle.

getty The Most Affordable Cities to Live in the United States: Trends

The report also highlights some trends. The Midwest dominates when it comes to affordability, with Cleveland, Dayton, and Indianapolis ranking among the least expensive.

The results show that Midwestern cities offer some of the lowest average household spending, providing an alternative for Americans looking to save on their essential bills, Powell says.

Meanwhile, California cities dominate the list of the most expensive places to live, with high housing costs and income disparities driving up spending in San Jose, San Francisco, Los Angeles and San Diego. In Los Angeles, for example, household bills represent 51% of income, a figure that underscores the financial strain of living in one of the largest metropolitan areas in the Americas.

Whether you're considering a move or just curious about how your city stacks up, the report offers a detailed breakdown of the most affordable cities to live in the United States, as well as the least expensive cities nationwide. Keep reading for lists of the 10 most expensive cities and the 10 most affordable cities. For the full ranking and additional information on household spending trends, you can view the full report here.

Cleveland has been named the second most affordable city in the United States. Pictured here: The Cuyahoga River.

Getty Ranking: Most Affordable Cities to Live in the United States Detroit $1,640/month (23% below national average) Cleveland $1,735/month (18% below national average) Dayton, 1,773 $/month (17% below national average) El Paso, Texas $1,784/month (16% below national average) Rochester, New York 1,858 $/month (13% below national average) Oklahoma City $1,896/month (11% below national average) Albuquerque, New Mexico $1,907/month (10% below national average) Memphis $1,912/month (10% below national average) Louisville, Kentucky $1,936/month (9% below national average) Indianapolis $1,976/month (7% below the national average)

New York, the second most expensive city to live in.

Getty Ranking: Most Expensive Cities in the United States San Jose, California $3,695/month (74% above national average) New York $3,639/month (71% above national average) Boston $3,410/month (60% above national average) San Francisco $3,359/month (58% above national average) San Diego 3,324 $/month (56% above national average) Los Angeles $3,113/month (46% above national average) Seattle $3,049/month (43% above national average) Washington , DC $2,991/month (41% above national average) Miami $2,867/month (35% above national average) Portland, Oregon $2,758/month (30% above national average) MORE FROM FORBES:ForbesRanked: The 25 Best Cities to Live in the World, According to ExpatsBy Laura Begley BloomForbesLeaving the US: Village in Italy Sells Homes to Americans for $1 By Laura Begley Bloom Forbes Do you want to leave the United States? Countries welcoming Americans with open armsBy Laura Begley Bloom

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