Here’s the Living Wage a Millennial Needs To Live Comfortably in the Midwest

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Millennials across the U.S. are feeling the pressure of rising costs, with inflation spiking over the past few years. As many as 42% of millennials are now stressed about the cost of living in their area, according to the World Economic Forum.

If you’re worried about making ends meet on your current income, the first step is to get informed. Understanding the typical cost of living in your state will help you plan for the future, establish a budget and know when you need to expand your income. 

To help you get started, GOBankingRates examined the average cost of living in 12 Midwestern states. The data is sourced from a GOBankingRates study conducted this year. Here’s what you need to know.

You can also find out how much the definition of the middle class has changed in the Midwest.

Costs and Wages in the Midwest

The cost of living index is a measure of each state’s average costs. While states along the West Coast and in the Northeast rank highest on the index, most Midwestern states rank lower, per World Population Review.

However, that doesn’t necessarily mean residents of those states live more comfortably than in other parts of the country. To understand the full picture, you have to compare the costs to the standard wage in a particular state. 

Here’s an overview of median wages, housing costs and the income you need to live comfortably in each Midwestern state.

Indiana

• Median household income: $67,173
• Average monthly mortgage cost: $1,459
• Average monthly expenditure cost: $1,799
• Average monthly cost of living total: $3,258
• Average annual cost of living total: $39,095
• Living wage needed to live comfortably: $78,189

Illinois

• Median household income: $78,433
• Average monthly mortgage cost: $1,612
• Average monthly expenditure cost: $1,854
• Average monthly cost of living total: $3,466
• Average annual cost of living total: $41,593
• Living wage needed to live comfortably: $83,185

Michigan

• Median household income: $68,505
• Average monthly mortgage cost: $1,466
• Average monthly expenditure cost: $1,828
• Average monthly cost of living total: $3,294
• Average annual cost of living total: $39,530
• Living wage needed to live comfortably: $79,060

Ohio

• Median household income: $66,990
• Average monthly mortgage cost: $1,394
• Average monthly expenditure cost: $1,848
• Average monthly cost of living total: $3,243
• Average annual cost of living total: $38,913
• Living wage needed to live comfortably: $77,827

Wisconsin

• Median household income: $72,458
• Average monthly mortgage cost: $1,833
• Average monthly expenditure cost: $1,863
• Average monthly cost of living total: $3,695
• Average annual cost of living total: $44,342
• Living wage needed to live comfortably: $88,684

Iowa

• Median household income: $70,571
• Average monthly mortgage cost: $1,343
• Average monthly expenditure cost: $1,816
• Average monthly cost of living total: $3,159
• Average annual cost of living total: $37,910
• Living wage needed to live comfortably: $75,821

Kansas

• Median household income: $69,747
• Average monthly mortgage cost: $1,374
• Average monthly expenditure cost: $1,764
• Average monthly cost of living total: $3,138
• Average annual cost of living total: $37,653
• Living wage needed to live comfortably: $75,306

Minnesota

• Median household income: $84,313
• Average monthly mortgage cost: $2,055
• Average monthly expenditure cost: $1,877
• Average monthly cost of living total: $3,931
• Average annual cost of living total: $47,177
• Living wage needed to live comfortably: $94,354

Missouri

• Median household income: $65,920
• Average monthly mortgage cost: $1,487
• Average monthly expenditure cost: $1,728
• Average monthly cost of living total: $3,215
• Average annual cost of living total: $38,579
• Living wage needed to live comfortably: $77,157

Nebraska

• Median household income: $71,722
• Average monthly mortgage cost: $1,580
• Average monthly expenditure cost: $1,833
• Average monthly cost of living total: $3,412
• Average annual cost of living total: $40,949
• Living wage needed to live comfortably: $81,898

North Dakota

• Median household income: $73,959
• Average monthly mortgage cost: $1,576
• Average monthly expenditure cost: $1,828
• Average monthly cost of living total: $3,405
• Average annual cost of living total: $40,857
• Living wage needed to live comfortably: $81,714

South Dakota

• Median household income: $69,457
• Average monthly mortgage cost: $1,829
• Average monthly expenditure cost: $1,845
• Average monthly cost of living total: $3,675
• Average annual cost of living total: $44,095
• Living wage needed to live comfortably: $88,191

Methodology: For this study, GOBankingRates analyzed each state to find the comfortable living wage for millennials. Millennials for this study are defined as being born between 1981 and 1997. For each state, a number of factors were found including: total population, total households, household median income all sourced from the U.S. Census American Community Survey. The average single family home value from May 2024 was sourced from Zillow Home Value Index, and by assuming a 10% down payment and using the national 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The cost-of-living indexes were sourced from Sperling’s BestPlaces, and by using the national average expenditure costs for residents born between 1981 and 1997, the average expenditure cost can be calculated. The expenditure cost and mortgage costs can be used to calculate the average total cost of living. Using the 50-30-20 budget rule, which allocates 50% of income for necessities, the study doubled the total annual expenditure on necessities in order to determine the living wage for millennials in each state. All data was collected on and is up to date as of Jul. 15, 2024.

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