The 10 Most Affordable States for Gen Z

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Gen Z, the generation born between 1997 and 2012, may be young, but they aren’t naive, at least not when it comes to money. Gen Z, as a whole, is savvy with their spending habits and keen on saving money. Some research shows that Gen Z women, more so than their male peers, are particularly aggressive when it comes to saving. 

But no matter how focused and determined Gen Z may be, they, like every other generation, have their fair share of financial challenges (e.g., the staggeringly high price of a college education and costs of living rising faster than those wages, particularly for jobs lower on the totem pole). To help keep them on track toward achieving financial freedom — or maintaining it — Gen Z must cut costs wherever possible. For some Gen Zers, this means moving somewhere affordable (not an easy feat in the U.S.).

A new study by GOBankingRates study analyzed each U.S. state for different generations, including Gen Z.  So, which states are the most affordable for Gen Z?

10. Indiana

• Median household income: $67,173   
• Single-family home value: $246,479  
• Annual cost of living for Gen Z: $38,649 

9. Kansas

• Median household income: $69,747   
• Single-family home value: $233,595  
• Annual cost of living for Gen Z: $38,619 

8. Alabama 

• Median household income: $59,609 
• Single-family home value: $229,960  
• Annual cost of living for Gen Z: $37,896   

7. Iowa

• Median household income: $70,571   
• Single-family home value: $227,918  
• Annual cost of living for Gen Z: $37,562  

6. Oklahoma 

• Median household income: $61,364   
• Single-family home value: $210,082  
• Annual cost of living for Gen Z: $36,220 

5. Kentucky 

• Median household income: $60,183   
• Single-family home value: $210,663  
• Annual cost of living for Gen Z: $35,790 

4. Arkansas 

• Median household income: $56,335   
• Single-family home value: $210,131  
• Annual cost of living for Gen Z: $35,780 

3. West Virginia

• Median household income: $55,217   
• Single-family home value: $169,401  
• Annual cost of living for Gen Z: $34,618 

2. Louisiana

• Median household income: $57,852 
• Single-family home value: $206,641 
• Annual cost of living for Gen Z: $34,548 

1. Mississippi

• Median household income: $52,985 
• Single-family home value: $182,825 
• Annual cost of living for Gen Z: $33,984 

Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average monthly expenses and the highest expenditure cost for different generations. First, GOBankingRates found information on each state including; total population, population ages 65 and over, total households, household median income all sourced from the U.S. Census American Community Survey. The cost of living indexes for each state as sourced from Missouri Economic Research Information Center. For each cost of living index the average expenditure cost can be calculated using the Bureau of Labor Statistics Consumer Expenditure Survey 2602 for different generations. The generations are defined as; Gen Z born between 1997 or later, millennials born between 1981-1997, Gen X born between 1965-1980, and boomers born between 1946-1964. This calculation gives the average expenditure cost of living for each generation in each state. Using the average home value as sourced from Zillow Home Value Index for August 2024, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the average mortgage and expenditure costs the total cost of living can be calculated for each state and for each generation. The highest expenditure index and average monthly cost were also shown to find the highest expenditure cost for each state. The states were sorted to show the cheapest to most expensive total cost of living. The data was collected on and is up to date as of Aug. 24, 2024.

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