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How Much Does the American Dream Cost in Your State?

July 26, 2025

7 min Read

Written by T. Woods

Edited by Chris Cluff

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GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

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Do you think you can afford the American dream in 2025? Especially with the ever-rising cost of living?

To determine the true cost of the American dream, GOBankingRates began by defining it as a married couple with two children, a home, a car and a pet. From there, each state was analyzed with criteria that included annual grocery costs, pet care costs (based on the average annual cost of a dog and cat), an annual mortgage with a 20% down payment, annual healthcare costs, utilities costs, education costs and cost of child care. All annual costs were added up and doubled to define the cost of the American dream.

Ranked from most to least expensive, see the true cost of the American dream in all 50 states. Also see the cost in the 50 largest cities.

50. Hawaii

True cost of the American dream: $238,680
Total annual cost: $119,340
Grocery cost per year: $11,816
Annual mortgage: $29,022

49. Massachusetts

True cost of the American dream: $217,722
Total annual cost: $108,861
Grocery cost per year: $9,460
Annual mortgage: $19,266

48. California

True cost of the American dream: $209,767
Total annual cost: $104,883
Grocery cost per year: $10,121
Annual mortgage: $23,794

47. Alaska

True cost of the American dream: $195,120
Total annual cost: $97,560
Grocery cost per year: $11,517
Annual mortgage: $11,389

46. Washington

True cost of the American dream: $188,264
Total annual cost: $94,132
Grocery cost per year: $9,568
Annual mortgage: $18,118

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45. New Jersey

True cost of the American dream: $182,445
Total annual cost: $91,222
Grocery cost per year: $9,442
Annual mortgage: $16,744

44. Connecticut

True cost of the American dream: $180,799
Total annual cost: $90,399
Grocery cost per year: $9,297
Annual mortgage: $12,894

43. Colorado

True cost of the American dream: $180,766
Total annual cost: $90,383
Grocery cost per year: $9,124
Annual mortgage: $16,587

42. Vermont

True cost of the American dream: $175,818
Total annual cost: $87,909
Grocery cost per year: $9,623
Annual mortgage: $11,650

41. Oregon

True cost of the American dream: $174,662
Total annual cost: $87,331
Grocery cost per year: $9,623
Annual mortgage: $14,963

40. Minnesota

True cost of the American dream: $173,697
Total annual cost: $86,849
Grocery cost per year: $9,251
Annual mortgage: $10,057

39. New Hampshire

True cost of the American dream: $170,862
Total annual cost: $85,431
Grocery cost per year: $9,052
Annual mortgage: $14,876

38. New York

True cost of the American dream: $170,669
Total annual cost: $85,335
Grocery cost per year: $9,414
Annual mortgage: $13,660

37. Rhode Island

True cost of the American dream: $169,838
Total annual cost: $84,919
Grocery cost per year: $9,233
Annual mortgage: $14,233

36. Maryland

True cost of the American dream: $168,005
Total annual cost: $84,002
Grocery cost per year: $9,704
Annual mortgage: $12,906

35. Nevada

True cost of the American dream: $161,922
Total annual cost: $80,961
Grocery cost per year: $9,351
Annual mortgage: $13,753

34. Arizona

True cost of the American dream: $156,394
Total annual cost: $78,197
Grocery cost per year: $9,161
Annual mortgage: $13,012

33. Wisconsin

True cost of the American dream: $154,655
Total annual cost: $77,327
Grocery cost per year: $8,880
Annual mortgage: $9,222

32. Delaware

True cost of the American dream: $153,910
Total annual cost: $76,955
Grocery cost per year: $9,288
Annual mortgage: $11,415

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31. Maine

True cost of the American dream: $151,734
Total annual cost: $75,867
Grocery cost per year: $9,197
Annual mortgage: $11,628

30. Utah

True cost of the American dream: $149,873
Total annual cost: $74,936
Grocery cost per year: $8,853
Annual mortgage: $15,845

29. Montana

True cost of the American dream: $149,164
Total annual cost: $74,582
Grocery cost per year: $9,179
Annual mortgage: $13,502

28. Virginia

True cost of the American dream: $147,055
Total annual cost: $73,527
Grocery cost per year: $9,025
Annual mortgage: $11,948

27. Ohio

True cost of the American dream: $145,533
Total annual cost: $72,767
Grocery cost per year: $8,961
Annual mortgage: $6,871

26. Florida

True cost of the American dream: $143,700
Total annual cost: $71,850
Grocery cost per year: $9,532
Annual mortgage: $12,148

25. Illinois

True cost of the American dream: $143,153
Total annual cost: $71,576
Grocery cost per year: $8,889
Annual mortgage: $8,121

24. Pennsylvania

True cost of the American dream: $138,994
Total annual cost: $69,497
Grocery cost per year: $8,989
Annual mortgage: $7,987

23. Nebraska

True cost of the American dream: $137,818
Total annual cost: $68,909
Grocery cost per year: $8,989
Annual mortgage: $7,722

22. Idaho

True cost of the American dream: $135,607
Total annual cost: $67,804
Grocery cost per year: $9,387
Annual mortgage: $13,566

21. New Mexico

True cost of the American dream: $135,259
Total annual cost: $67,629
Grocery cost per year: $8,735
Annual mortgage: $9,077

20. Georgia

True cost of the American dream: $134,993
Total annual cost: $67,497
Grocery cost per year: $8,816
Annual mortgage: $9,808

19. Indiana

True cost of the American dream: $133,155
Total annual cost: $66,578
Grocery cost per year: $8,816
Annual mortgage: $7,148

18. South Carolina

True cost of the American dream: $132,681
Total annual cost: $66,340
Grocery cost per year: $8,998
Annual mortgage: $8,882

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17. North Dakota

True cost of the American dream: $132,340
Total annual cost: $66,170
Grocery cost per year: $8,608
Annual mortgage: $8,067

16. North Carolina

True cost of the American dream: $130,518
Total annual cost: $65,259
Grocery cost per year: $8,916
Annual mortgage: $9,847

15. Missouri

True cost of the American dream: $129,476
Total annual cost: $64,738
Grocery cost per year: $8,699
Annual mortgage: $7,401

14. Texas

True cost of the American dream: $129,026
Total annual cost: $64,513
Grocery cost per year: $8,708
Annual mortgage: $8,998

13. Wyoming

True cost of the American dream: $128,406
Total annual cost: $64,203
Grocery cost per year: $9,088
Annual mortgage: $10,477

12. Oklahoma

True cost of the American dream: $127,100
Total annual cost: $63,550
Grocery cost per year: $8,644
Annual mortgage: $6,159

11. Tennessee

True cost of the American dream: $127,028
Total annual cost: $63,514
Grocery cost per year: $8,798
Annual mortgage: $9,540

10. Michigan

True cost of the American dream: $122,509
Total annual cost: $61,255
Grocery cost per year: $8,98
Annual mortgage: $7,190

9. South Dakota

True cost of the American dream: $121,181
Total annual cost: $60,591
Grocery cost per year: $8,834
Annual mortgage: $9,061

8. Iowa

True cost of the American dream: $118,611
Total annual cost: $59,306
Grocery cost per year: $8,753
Annual mortgage: $6,563

7. West Virginia

True cost of the American dream: $117,788
Total annual cost: $58,894
Grocery cost per year: $8,970
Annual mortgage: $4,896

6. Kentucky

True cost of the American dream: $116,613
Total annual cost: $58,306
Grocery cost per year: $9,043
Annual mortgage: $6,262

5. Kansas

True cost of the American dream: $115,895
Total annual cost: $57,947
Grocery cost per year: $8,590
Annual mortgage: $6,762

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4. Louisiana

True cost of the American dream: $113,783
Total annual cost: $56,892
Grocery cost per year: $8,708
Annual mortgage: $5,943

3. Arkansas

True cost of the American dream: $111,758
Total annual cost: $55,879
Grocery cost per year: $8,626
Annual mortgage: $6,262

2. Alabama

True cost of the American dream: $111,534
Total annual cost: $55,767
Grocery cost per year: $8,807
Annual mortgage: $6,674

1. Mississippi

True cost of the American dream: $104,948
Total annual cost: $52,474
Grocery cost per year: $8,726
Annual mortgage: $5,308

Sean Dennison contributed to this article.

Methodology: The American Dream for this study is defined as a married couple who own a home and a car, have two children and a pet. The data included was sourced from the U.S. Census American Community Survey, the Missouri Economic Research and Information Center, the Bureau of Labor Statistics Consumer Expenditure Survey, Zillow Home Value Index, the Federal Reserve, ASPCA’s Annual Pet Costs, the Economic Policy Institute’s Childcare Costs by State. Using the 50/30/20 financial rule that states that needs should not exceed 50% of household income, the total cost of living was doubled to find the income needed to live the American Dream. The states were sorted to show the most income needed first. All data is up to date as of April 17, 2025.

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