The Most Affordable Cities To Live In The U.S. (And The Most Expensive), Ranked In A New Report

A panorama of Detroit, which has been named the most affordable city to live in the U.S. / Getty
[forbes.com – 2024.12.24] Does your list of 2025 resolutions include finding a place where you can save money and still enjoy a great quality of life? You’re not alone. With the cost of living on the rise, many Americans are searching for the most affordable cities to live in the U.S.

To help, Doxo—an online bill payment platform—has released its annual “50 Largest U.S. Cities Household Spend Report 2024,” revealing the most affordable (and the most expensive) places to live across the United States.

“Doxo’s annual ‘50 Largest U.S. Cities Household Spend Report’ uncovers Americans’ cost of living based on actual bill payment activity across more than 97% of U.S. zip codes, providing consumers with full visibility into average household expenses across the nation,” 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. Across the country, the average household spends 34% of its income on essential bills—up 4% from 2023 as inflation continues to affect American consumers.

The Most Affordable Cities To Live In The U.S.

This year, Detroit, Michigan, is the most affordable city for the third consecutive year, with monthly expenses averaging $1,640, or 23% below the national average. Two other Ohio cities come next—Cleveland in second place, followed by Dayton. The three most affordable cities remain exactly the same as last year.

A view of Monroe Avenue, the heart of the Greektown District in Detroit. / Getty

At the opposite end of the spectrum is San Jose, California—in the heart of Silicon Valley—which tops the list as the most expensive city in the U.S. Here, residents pay an average of $3,695 per month on household bills: a whopping 74% above the national average.

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

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 started doing this report in 2022. “While the same four cities top the list of most expensive cities in both 2023 and 2024, the order shifted slightly this year,” she says.

The Most Affordable Cities To Live In The U.S.

A view of San Jose, California—the most expensive city in the U.S. / Getty

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

“Findings show that cities in the Midwest offer some of the lowest average household expenses, providing an alternative for Americans looking to save on essential bills,” says Powell.

The Midwest dominates when it comes to affordability. Pictured here: Indianapolis and the Monument Circle. / Getty

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

Cleveland was named the second most affordable city in the U.S. Pictured here: the Cuyahoga River. / Getty

Ranked: The Most Affordable Cities To Live In The U.S.

  1. Detroit – $1,640/month (23% below national average)
  2. Cleveland – $1,735/month (18% below national average)
  3. Dayton, – $1,773/month (17% below national average)
  4. El Paso, Texas – $1,784/month (16% below national average)
  5. Rochester, New York – $1,858/month (13% below national average)
  6. Oklahoma City – $1,896/month (11% below national average)
  7. Albuquerque, New Mexico – $1,907/month (10% below national average)
  8. Memphis – $1,912/month (10% below national average)
  9. Louisville, Kentucky – $1,936/month (9% below national average)
  10. Indianapolis – $1,976/month (7% below national average)
New York City, the second most expensive city to live. / Getty

Ranked: The Most Expensive Cities In The U.S.

  1. San Jose, California – $3,695/month (74% above national average)
  2. New York City – $3,639/month (71% above national average)
  3. Boston – $3,410/month (60% above national average)
  4. San Francisco – $3,359/month (58% above national average)
  5. San Diego – $3,324/month (56% above national average)
  6. Los Angeles – $3,113/month (46% above national average)
  7. Seattle – $3,049/month (43% above national average)
  8. Washington, D.C. – $2,991/month (41% above national average)
  9. Miami – $2,867/month (35% above national average)
  10. Portland, Oregon – $2,758/month (30% above national average)

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