A panorama of Detroit, which has been named the most affordable city to live in the US
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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 costs of living risemany Americans are looking for the most affordable cities to live in the US
To help, Doxo– an online bill payment platform – has released its annual “50 Largest US Cities Household Spend Report 2024,” revealing the most affordable (and most expensive) places to live in the United States. Compare this with another recent report on the best places to live in the US, where affordability is also a consideration.
The Doxo report is based on actual bill payment data, detailing average monthly costs for 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.
“Doxo’s annual ’50 Largest US Cities Household Spend Report’ reveals Americans’ cost of living based on actual bill payment activity for more than 97% of US zip codes, giving consumers full visibility into average household expenses 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 – an increase of 4% from 2023 as inflation continues to impact American consumers. However, these costs vary widely depending on location.
A view of Monroe Avenue, the heart of Detroit’s Greektown District.
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The Most Affordable Cities to Live in the US: The Winner
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. The second most affordable city is Cleveland, Ohio, followed by Dayton, Ohio and El Paso, Texas.
One thing to note: Although the cost of living in Detroit is low, household bills take up a significant portion of the average income, at $37,360 per year. “In Detroit, household bills represent 53% of household income, making it a great city for those looking for a lower cost of living, but also highlighting economic challenges,” Powell said.
Despite rising inflation, Detroit’s average monthly expenses have also remained relatively stable, further strengthening Detroit’s position as the most affordable city in the rankings.
A view of San Jose, California, the most expensive city in the US
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Determining the Most Expensive Cities in the US
At the other end of the spectrum, San Jose, California – in the heart of Silicon Valley – tops the list as the most expensive city in the US. Here, residents pay an average of $3,695 per month in household bills: a whopping 74% above the national average. But it’s not all bad news: “In the heart of Silicon Valley, with a booming job market and beautiful weather, San Jose has several qualities that make it an attractive place for Americans to live if they can afford the higher cost of living ,” says Powell.
This year, New York is the second most expensive city, followed by Boston and San Francisco.
According to Powell, the rankings have not changed much since Doxo started this report in 2022. “While the same four cities will top the list of most expensive cities in both 2023 and 2024, the order has shifted slightly this year,” she says. Meanwhile, the three most affordable cities remain exactly the same as last year.
The Midwest dominates when it comes to affordability. Pictured here: Indianapolis and the Monument Circle.
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The most affordable cities to live in the US: trends
The report also highlights some trends. The Midwest dominates when it comes to affordability, with Cleveland, Dayton and Indianapolis among the least expensive. “The findings show that Midwestern cities have among the lowest average household expenses, providing an alternative for Americans looking to save on essential bills,” Powell said.
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 account for 51% of income – a figure that underscores the financial pressures that come with living in one of America’s largest metropolitan areas.
Whether you’re considering a move or are just curious about how your city fares, the report provides a detailed look at the most affordable cities to live in the US, as well as the least expensive cities in the country. Keep reading for the lists of the 10 most expensive cities and the 10 most affordable cities. For the full rankings and additional insights into household spending trends, view the full report here.
Cleveland was named the second most affordable city in the US. Pictured here: the Cuyahoga River.
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Ranked: The Most Affordable Cities to Live in the US
- Detroit – $1,640/month (23% below national average)
- Cleveland – $1,735/month (18% below national average)
- Dagton, – $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, KY – $1,936/month (9% below national average)
- Indianapolis – $1,976/month (7% below national average)
New York City, the second most expensive city to live in.
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Ranked: The Most Expensive Cities in the US
- San Jose, California – $3,695/month (74% above national average)
- New York City – $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, Ore – $2,758/month (30% above national average)
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