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

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. Compare this to another recent report on the best places to live in the U.S., where affordability is also a consideration.

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

“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. However, these costs vary widely depending on location.

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

One thing to note: While Detroit’s cost of living is low, household bills take up a significant portion of median income, which is $37,360 annually. “In Detroit, household bills account for 53% of household income, making it a great city for those seeking reduced living costs but also highlighting economic challenges,” says Powell.

Despite climbing inflation, Detroit’s average monthly expenses have also remained relatively stable, further cementing its position as the most affordable city in the rankings.

Determining The Most Expensive Cities In The U.S.

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.: Trends

The report also highlight 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.

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.

Whether you’re considering a move or simply curious about how your city stacks up, the report offers a detailed breakdown of the most affordable cities to live in the U.S., as well as the least expensive cities in the nation. 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, you can check out the full report here.

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)

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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