19 States Where Affordability Is a Growing Concern

Finding an affordable place to live isn’t quite as simple as looking for the state with the cheapest houses. A place might have relatively reasonable home prices but expensive insurance, property taxes, or utilities. Somewhere else might have excellent salaries but housing costs that eat up a remarkable portion of those paychecks. And if you’re thinking about relocating, those differences can make a bigger impact on your budget than you might expect.

Here in the Pacific Northwest, Washington and Oregon offer plenty of reasons to stay, from the coastline and mountains to the cities and smaller communities scattered throughout the region. Unfortunately, affordability is a concern in many of those places, particularly for first-time buyers and residents living on fixed incomes. Similar challenges exist across the country, although they’re not always caused by the same expenses.

We’ve taken a closer look at 19 states where housing and everyday expenses deserve some consideration, especially if you’re planning a move or comparing retirement destinations. For context, we’re using the Bureau of Economic Analysis’ regional price parities, which compare overall state price levels with the national average of 100. The latest available comparison covers 2024 and was released in February 2026. We’ve also considered housing-cost research from the U.S. Census Bureau and Harvard’s Joint Center for Housing Studies. This isn’t a ranking of the country’s 19 most expensive states, and it doesn’t predict future prices. It’s a look at different affordability challenges, including why a state with below-average prices can still be difficult for some households to afford.

California

California has one of the largest and most diverse economies in the world, with major industries ranging from technology and entertainment to agriculture and manufacturing. But having an enormous economy doesn’t necessarily make life affordable for the people living there. According to the Bureau of Economic Analysis, California’s overall price level in 2024 was 10.7% above the national average, the highest among the 50 states. Housing is a particularly significant part of that difference, especially in coastal metropolitan areas.

For someone hoping to buy a home in San Francisco, San Jose, Los Angeles, or San Diego, the financial challenge can be substantial even with a reasonably good salary. The Census Bureau reported that California homeowners with a mortgage faced median monthly owner costs of $3,001 in 2024, among the highest figures nationwide. Of course, California is a large state, and prices differ considerably between the coast, the Central Valley, and inland communities. Someone living in Bakersfield will have a very different housing budget from someone in Silicon Valley. The important consideration is whether local earnings can realistically support housing, transportation, insurance, and everything else that comes with living in the Golden State.

Texas

Texas has long attracted people looking for employment opportunities, relatively spacious housing, and the financial benefits of living in a state without a personal income tax. Major metropolitan areas such as Dallas-Fort Worth, Houston, Austin, and San Antonio have substantial economies supported by energy, technology, manufacturing, healthcare, and other industries. But while Texas can still offer better housing values than some coastal states, the overall cost of living isn’t quite as simple as the state’s low-tax reputation might suggest. Its 2024 price level was 2.9% below the national average.

The biggest expenses to watch are often property taxes, homeowners insurance, and housing costs in high-demand neighborhoods. The Federal Reserve Bank of Dallas reported in April 2026 that the median Texas homeowner paid 60% more for home insurance in 2024 than in 2019, compared with a 30% national increase over the same period. Those additional costs can significantly change the monthly budget for someone buying a house. And while a home in a smaller Texas community may be relatively affordable, prices around popular suburbs and major employment centers can tell a different story. Texas remains a reasonable option for many movers, but calculating the total cost of ownership matters considerably more than focusing on the absence of a state income tax.

New York

New York is another state where economic opportunity and affordability don’t always go hand in hand. New York City is one of the world’s most important financial, entertainment, and business centers, offering employment opportunities across a remarkable number of industries. Unfortunately, housing costs in the city and surrounding metropolitan area can be substantial, particularly for renters and first-time buyers. The state’s overall price level was 7.9% above the national average in 2024, according to the Bureau of Economic Analysis.

However, describing all of New York as expensive overlooks a major distinction. Living in Manhattan or Brooklyn is a completely different financial experience from living in Buffalo, Rochester, or many communities across upstate New York. Some smaller cities offer more approachable home prices, although property taxes, heating expenses, and local employment opportunities can still influence affordability. New York City residents also face a local income tax on top of state and federal taxes. For anyone considering a move, the question isn’t simply whether New York is affordable. It’s which part of New York they’re considering, how much they’ll earn, and whether the advantages of that location justify the additional expenses.

Florida

Florida is famous for its warm weather, beaches, and appeal to retirees, but the financial picture has become more complicated for people considering a move. The state has no personal income tax, which can certainly be attractive. Unfortunately, that benefit doesn’t automatically make up for housing, property insurance, association fees, and other expenses. According to the Bureau of Economic Analysis, Florida’s overall price level was 3.4% above the national average in 2024, with substantial differences between communities.

South Florida is particularly challenging for many households, with housing prices and rents that can consume a significant portion of local incomes. A May 2026 Congressional Research Service analysis found that 59.3% of Florida renter households were cost-burdened in 2024, meaning they spent more than 30% of their income on housing. That’s an especially important figure for retirees or workers whose income may not rise alongside their expenses. Homeowners face additional concerns involving hurricanes, flood risk, insurance premiums, and condominium or homeowners association assessments. Of course, the costs of living in Miami or Naples are different from those in smaller inland communities. Florida can still be an appealing place to live, but the full monthly budget deserves considerably more attention than the state’s income-tax policy alone.

Illinois

Illinois is a good reminder that a state can have a major metropolitan economy without being among the country’s most expensive places overall. Chicago remains an important center for finance, transportation, healthcare, manufacturing, and technology, while smaller cities and agricultural communities contribute to the state’s diverse economy. According to the Bureau of Economic Analysis, Illinois had an overall price index of 100.0 in 2024, exactly matching the national average. That doesn’t mean every community has average prices, of course, but it puts the state’s overall affordability in perspective.

Housing costs in Chicago vary widely depending on the neighborhood and nearby suburbs. Some locations command premium prices, while other parts of the metropolitan area remain comparatively accessible. Property taxes can also become a major consideration for homeowners, particularly when evaluating the actual monthly cost of purchasing a house. Elsewhere, cities such as Peoria, Rockford, and Springfield may offer less expensive housing than neighborhoods closer to downtown Chicago. For people thinking about relocating, Illinois is worth evaluating at the local level instead of relying on its reputation as a high-tax or high-cost state. Depending on where you choose to live, the numbers can look surprisingly different.

Pennsylvania

Pennsylvania has a long industrial history, but its economy extends well beyond the steel mills and factories that once defined much of the state. Philadelphia, Pittsburgh, and other population centers now support major healthcare, education, technology, finance, and manufacturing industries. The state also includes smaller cities and rural communities where housing can be substantially less expensive. Its overall price level was 2.4% below the national average in 2024, according to the Bureau of Economic Analysis.

For households considering Pennsylvania, location is particularly important. Philadelphia’s desirable neighborhoods and surrounding suburbs can have housing costs that are difficult to manage on a modest income, while some smaller communities offer significantly lower prices. Property taxes, school district boundaries, home maintenance, and winter utility expenses can also influence the long-term cost of living. Pittsburgh is frequently considered by people looking for a larger city with comparatively approachable housing prices, although affordability still varies by neighborhood. Pennsylvania isn’t uniformly expensive, and that’s part of why it deserves a closer look. A household comparing homes across the state may find that its budget goes considerably further in one county than another.

Ohio

Ohio might seem like an unusual inclusion in a discussion about affordability challenges, and there’s a good reason for that. Compared with many states, Ohio remains relatively inexpensive. The Bureau of Economic Analysis placed its overall price level 7.2% below the national average in 2024. Cities such as Cleveland, Cincinnati, Dayton, and Toledo offer a range of housing options, while Columbus has developed into an increasingly important center for education, healthcare, technology, and business.

That doesn’t mean affordability is irrelevant for Ohio residents. Lower home prices don’t automatically solve the problem for households with limited incomes, particularly when wages, property taxes, healthcare costs, and home maintenance are factored into the equation. Older housing can also come with substantial renovation and repair expenses that aren’t obvious from an attractive listing price. Columbus and some of its surrounding communities have experienced significant housing demand, creating different conditions from markets elsewhere in the state. Ohio is generally more affordable than many of the coastal destinations in this slideshow, and it would be misleading to suggest otherwise. But as with most places, whether someone can comfortably live there depends on their earnings and the particular community they’re considering.

Georgia

Georgia has attracted businesses and residents through its growing employment opportunities, particularly around Atlanta. The metropolitan area supports major industries including transportation, healthcare, technology, film production, and financial services. That growth has helped make Atlanta an important economic center, but it has also placed pressure on housing in desirable neighborhoods and rapidly developing suburbs. Despite those localized challenges, Georgia’s overall price level remained 3.7% below the national average in 2024, according to the Bureau of Economic Analysis.

The distinction between statewide affordability and individual housing markets matters quite a bit here. Homes in parts of metro Atlanta can be substantially more expensive than properties in smaller cities or rural communities. Households also need to consider commuting expenses, transportation requirements, property taxes, and insurance when deciding whether a particular neighborhood fits their budget. Georgia’s economy includes agriculture and manufacturing alongside its service and technology sectors, creating very different employment and income conditions throughout the state. While Georgia may still offer relatively attractive costs compared with some major coastal markets, that doesn’t necessarily mean every growing community is affordable for local residents or first-time buyers.

New Jersey

New Jersey offers easy access to New York City and Philadelphia, an extensive transportation network, and major employment opportunities in healthcare, pharmaceuticals, technology, and finance. Those advantages help explain why the state remains desirable for so many households. Unfortunately, the costs can be substantial. The Bureau of Economic Analysis reported that New Jersey’s overall price level was 8.8% above the national average in 2024, placing it among the country’s most expensive states.

Housing and property taxes are particularly important considerations, especially for buyers interested in communities with convenient rail access to Manhattan. Census Bureau data showed that New Jersey homeowners with mortgages had median monthly owner costs of $2,797 in 2024, among the highest in the country. Some smaller communities farther from major employment centers offer more attainable housing, although commuting costs can offset part of those savings. The state’s strong schools, location, and economic opportunities remain attractive, but anyone evaluating New Jersey needs to look beyond the advertised home price. Taxes, insurance, transportation, and ongoing household expenses can make a major difference in how comfortable that purchase actually feels.

North Carolina

North Carolina continues to appeal to people interested in warmer weather, outdoor recreation, and growing employment opportunities. Charlotte is an important financial center, while the Raleigh-Durham region attracts employers in technology, healthcare, education, and research. The state’s mountains and coast offer still more reasons people consider moving there. According to the Bureau of Economic Analysis, North Carolina’s overall price level was 5.7% below the national average in 2024, making it relatively affordable in a nationwide comparison.

However, housing costs can vary substantially within the state. Desirable areas around Charlotte, Raleigh, and Asheville may require much larger budgets than smaller inland communities. Coastal properties also introduce additional concerns involving flood risk, homeowners insurance, and storm-related expenses. The Government Accountability Office identified parts of North Carolina among the areas experiencing especially large insurance-premium increases relative to inflation between 2019 and 2024. That means a house with an attractive asking price may still carry significant ongoing expenses. North Carolina remains appealing to many households, but it’s worth examining the local market rather than assuming the state’s below-average overall cost of living applies equally to every community.

Washington

Washington has plenty going for it, particularly if you appreciate the Pacific Northwest’s combination of mountains, coastline, forests, and major employment centers. Its economy includes technology, aerospace, agriculture, manufacturing, healthcare, and international trade. But the success of companies in and around Seattle doesn’t necessarily translate into affordable housing for the people who work and live nearby. According to the Bureau of Economic Analysis, Washington’s overall price level was 7% above the national average in 2024, making it one of the more expensive states in the country.

Much of the affordability challenge is concentrated around the Puget Sound region, particularly Seattle, Bellevue, and communities with convenient access to major employers. Even households earning relatively strong salaries can find homeownership difficult when mortgage payments, insurance, property taxes, and everyday expenses are combined. The financial picture changes considerably farther from the Seattle metropolitan area, with communities in eastern Washington and smaller towns offering different housing markets. Of course, relocating to a less expensive area can introduce longer commutes or fewer local job opportunities. Washington also has no broad-based individual income tax, but that advantage doesn’t erase its housing costs. For anyone hoping to remain in the Evergreen State, choosing the right community may be just as important as determining the size of the household budget.

Oregon

Oregon is another Pacific Northwest state where beautiful scenery and desirable communities can come with substantial living expenses. Portland’s metropolitan area provides access to technology jobs, healthcare, education, entertainment, and an extensive collection of neighborhoods with very different personalities. Elsewhere, communities around Bend and along the Oregon Coast have become appealing destinations for people looking to retire, relocate, or spend more time outdoors. But those desirable locations aren’t necessarily affordable for everyone. According to the Bureau of Economic Analysis, Oregon’s overall price level was 3.4% above the national average in 2024.

Housing is a major consideration, particularly in Portland’s more desirable neighborhoods, Bend, and some of the state’s coastal communities. Oregon also has a relatively high personal income tax compared with several neighboring states, although it does not have a general statewide sales tax. That combination can affect households differently depending on income, spending habits, and whether they rent or own. Smaller communities in southern and eastern Oregon may offer lower home prices, but employment opportunities and access to services can be more limited. For someone comparing Oregon with Washington, California, or another potential destination, it’s important to consider the entire budget rather than any single tax or housing statistic. Oregon certainly remains an attractive place to live, but affordability can look very different from one county to the next.

Massachusetts

Massachusetts is known for its universities, healthcare institutions, biotechnology companies, and rich American history. The Boston metropolitan area is an important center for medical research, education, finance, and technology, offering career opportunities across several well-paying industries. Unfortunately, its housing market can be extraordinarily difficult for buyers and renters. The Bureau of Economic Analysis reported that Massachusetts’ overall price level was 5.8% above the national average in 2024.

Housing expenses around Boston and Cambridge are especially significant, with high demand for homes near major employment centers and transit routes. According to the Census Bureau, Massachusetts homeowners with mortgages faced median monthly owner costs of $2,755 in 2024, one of the highest state-level figures. Some communities in central and western Massachusetts provide more accessible housing options, although the availability of employment, transportation, and services can differ. Residents also need to account for winter heating expenses, insurance, taxes, and other costs. Massachusetts offers substantial economic and cultural advantages, but those advantages don’t necessarily make it easy for a middle-income household to buy a home in a desirable community near Boston.

Virginia

Virginia has a varied economy supported by government contracting, defense, technology, manufacturing, agriculture, and healthcare. Its northern suburbs provide convenient access to Washington, D.C., creating substantial employment opportunities in technology and federal contracting. Meanwhile, Richmond, Hampton Roads, and communities farther west have very different economic and housing conditions. According to the Bureau of Economic Analysis, Virginia’s overall price level was 1.1% above the national average in 2024.

That relatively modest statewide difference hides some important local variations. Northern Virginia communities such as Arlington, Alexandria, and Fairfax can be expensive places to purchase a home, particularly for first-time buyers who want convenient access to employment centers and public transportation. Elsewhere, buyers may find more approachable home prices but potentially lower salaries or different commuting requirements. Coastal parts of Virginia also require attention to flood exposure and insurance costs. Virginia is another example of why a statewide price comparison should be treated as a starting point rather than the final answer. Someone buying a home near Washington, D.C., may face a completely different financial situation from someone relocating to a smaller town in the Shenandoah Valley.

Michigan

Michigan is frequently associated with the automobile industry, but its economy now includes healthcare, technology, education, research, and tourism alongside manufacturing. Detroit remains an important industrial and cultural center, while Grand Rapids, Ann Arbor, and other communities offer different employment and lifestyle opportunities. In a nationwide comparison, Michigan remains relatively affordable. Its overall price level was 3.8% below the national average in 2024, according to the Bureau of Economic Analysis.

For potential homebuyers, Michigan can offer comparatively accessible prices, particularly in cities and neighborhoods where housing values remain below those in major coastal markets. However, a lower purchase price doesn’t automatically mean a house is inexpensive to own. Older properties can require significant repairs, and households need to consider heating costs, property taxes, insurance, and local employment prospects. Desirable communities near Ann Arbor or in popular lakeside areas can also command substantially higher prices than the statewide average might suggest. Michigan doesn’t belong in a list of America’s most expensive states, but it does illustrate why affordability involves more than comparing house prices. A home that looks like a bargain can become considerably less appealing once the full cost of maintaining it is taken into account.

Colorado

Colorado has become an appealing destination for people interested in outdoor recreation, growing employment opportunities, and access to the Rocky Mountains. Denver and its surrounding communities support industries including technology, aerospace, healthcare, finance, and professional services. However, the state’s popularity has also contributed to substantial housing demand in several major markets. Colorado’s overall price level was 3.1% above the national average in 2024, according to the Bureau of Economic Analysis.

Housing costs are especially important in the Denver-Boulder region and certain mountain communities, where the combination of limited land, desirable locations, and demand can make properties expensive. Popular resort towns are a particularly unusual case, with local workers sometimes facing housing costs more commonly associated with much larger metropolitan areas. Beyond the mortgage or rent, households should consider transportation, winter utilities, property insurance, and the costs of living in mountain communities where services may be limited. Other parts of Colorado offer more accessible prices, including some communities along the eastern plains and in southern portions of the state. As elsewhere, whether Colorado feels affordable depends heavily on the place you choose and the income available to support your lifestyle.

Tennessee

Tennessee offers several attractions for prospective movers, including its music and entertainment industries, growing healthcare sector, manufacturing employers, and access to the Great Smoky Mountains. Nashville has developed into an important economic and cultural center, while Knoxville, Chattanooga, and Memphis provide different combinations of employment and lifestyle opportunities. Tennessee also has no state income tax on individual earnings. According to the Bureau of Economic Analysis, its overall price level was 8.1% below the national average in 2024.

That makes Tennessee relatively affordable by national standards, but the picture changes when looking at individual housing markets. Nashville’s popularity has created affordability pressures for some local residents, particularly those whose incomes haven’t kept pace with the costs in desirable neighborhoods. Elsewhere, smaller communities can offer substantially lower home prices, although employment prospects and access to services may differ. Tennessee’s reliance on sales taxes also deserves consideration when comparing household budgets across states. Overall, Tennessee remains a potentially attractive choice for people seeking a lower cost of living. It wouldn’t be accurate to describe the entire state as unaffordable, but it’s still worth evaluating whether housing and other expenses fit the income someone expects to earn in their chosen community.

Maryland

Maryland benefits from proximity to Washington, D.C., as well as major employment opportunities in healthcare, biotechnology, federal contracting, cybersecurity, and education. Communities around Bethesda, Rockville, Columbia, and the broader Baltimore-Washington corridor offer convenient access to substantial job markets. Unfortunately, housing in many of those areas can be expensive. The Bureau of Economic Analysis reported that Maryland’s overall price level was 5% above the national average in 2024.

For homeowners, property taxes, insurance, commuting expenses, and housing costs all need to be considered alongside local salaries. Some communities near Washington, D.C., command premium home prices because of their location and access to employment centers, while smaller towns farther from those markets can offer more affordable options. Maryland also includes coastal communities where flood risk and insurance may influence the cost of owning property. The state’s strong employment opportunities help support higher household incomes in some regions, but that doesn’t necessarily make housing affordable for every worker. If you’re planning a move to Maryland, comparing the full monthly cost of living across several communities will provide a much clearer picture than looking at statewide income or home-price figures alone.

Arizona

Arizona has become an increasingly familiar destination for retirees, remote workers, and people interested in sunshine and outdoor recreation. Phoenix and its surrounding communities support major industries including technology, manufacturing, aerospace, logistics, and healthcare. The state also has an established tourism economy, with attractions ranging from the Grand Canyon to Sedona’s red-rock landscapes. According to the Bureau of Economic Analysis, Arizona’s overall price level was 0.7% above the national average in 2024, putting it relatively close to the national figure.

Of course, that doesn’t mean every part of Arizona is equally affordable. Housing costs in Scottsdale and some desirable Phoenix suburbs can differ substantially from those in smaller communities elsewhere in the state. Buyers should also consider homeowners association fees, insurance, and the expense of cooling a home during extremely hot summers. The Census Bureau reported that Arizona was among the states with the highest shares of homeowners paying condominium or homeowners association fees in 2024. Water availability and long-term infrastructure needs are additional considerations in some fast-growing desert communities. Arizona can still provide an appealing lifestyle for people relocating from more expensive states, but understanding the total cost of living is essential before deciding that a move will automatically save money.