Cost of Achieving the American Dream in Every State

Anyone still pursuing the American dream in 2020 may need to wake up to the reality of modern personal finance. The average cost of raising a child is over $230,000, according to the U.S. Department of Agriculture. Home prices are expected to continue rising, albeit more slowly. And, workers’ wages remain largely stagnant while their bosses’ bank accounts expand. With this outlook, is the American dream even affordable anymore?

According to a new study by GOBankingRates, the answer may depend on where you live. To start, researchers defined the American dream as a married couple with two children, a pet, a house and a car. The study analyzed the annual costs to maintain those things — along with other necessities such as utilities and healthcare — and came up with a final cost needed to achieve the American dream in every state.

Regardless of the current state of your finances, there’s one finding from GOBankingRates’ study that’s important to note: Your best bet for success lies in the South, which is home to some of the most affordable states in America. Moving to a region with a cheaper cost of living might just help you attain your own version of the American dream.

Last updated: Aug. 24, 2020

1. Mississippi

Annual grocery cost: $11,205.30
Annual pet care cost: $754.36
Annual car cost: $8,499
Annual healthcare cost: $5,590
Annual utility cost: $4,805
Annual education cost: $2,335
Annual child care cost: $10,220
Annual mortgage cost: $10,548
Total annual costs: $53,956.26

True cost of the American dream: $107,913

2. Arkansas

Annual grocery cost: $10,735.48
Annual pet care cost: $763.06
Annual car cost: $9,107
Annual healthcare cost: $5,205
Annual utility cost: $4,895
Annual education cost: $2,362
Annual child care cost: $12,368
Annual mortgage cost: $9,780
Total annual costs: $55,215.73

True cost of the American dream: $110,431

3. Alabama

Annual grocery cost: $11,264.03
Annual pet care cost: $776.11
Annual car cost: $8,282
Annual healthcare cost: $5,425
Annual utility cost: $5,571
Annual education cost: $2,402
Annual child care cost: $11,185
Annual mortgage cost: $12,312
Total annual costs: $57,217.02

True cost of the American dream: $114,434

4. Kentucky

Annual grocery cost: $10,582.79
Annual pet care cost: $797.86
Annual car cost: $8,951
Annual healthcare cost: $5,510
Annual utility cost: $5,247
Annual education cost: $2,469
Annual child care cost: $12,821
Annual mortgage cost: $11,136
Total annual costs: $57,514.47

True cost of the American dream: $115,029

5. West Virginia

Annual grocery cost: $10,829.44
Annual pet care cost: $801.34
Annual car cost: $8,612
Annual healthcare cost: $5,474
Annual utility cost: $4,810
Annual education cost: $2,480
Annual child care cost: $16,380
Annual mortgage cost: $9,192
Total annual costs: $58,578.63

True cost of the American dream: $117,157

6. Oklahoma

Annual grocery cost: $11,123.08
Annual pet care cost: $758.71
Annual car cost: $8,376
Annual healthcare cost: $5,749
Annual utility cost: $5,050
Annual education cost: $2,348
Annual child care cost: $15,181
Annual mortgage cost: $10,752
Total annual costs: $59,336.99

True cost of the American dream: $118,674

7. Louisiana

Annual grocery cost: $11,710.36
Annual pet care cost: $814.39
Annual car cost: $8,644
Annual healthcare cost: $5,895
Annual utility cost: $4,768
Annual education cost: $2,521
Annual child care cost: $14,630
Annual mortgage cost: $11,424
Total annual costs: $60,406.55

True cost of the American dream: $120,813

8. South Carolina

Annual grocery cost: $11,910.04
Annual pet care cost: $834.40
Annual car cost: $8,315
Annual healthcare cost: $5,920
Annual utility cost: $5,608
Annual education cost: $2,583
Annual child care cost: $13,013
Annual mortgage cost: $13,116
Total annual costs: $61,299.39

True cost of the American dream: $122,599

9. South Dakota

Annual grocery cost: $11,839.56
Annual pet care cost: $857.03
Annual car cost: $8,467
Annual healthcare cost: $6,482
Annual utility cost: $4,752
Annual education cost: $2,653
Annual child care cost: $12,860
Annual mortgage cost: $13,668
Total annual costs: $61,577.90

True cost of the American dream: $123,156

10. Missouri

Annual grocery cost: $11,440.21
Annual pet care cost: $768.28
Annual car cost: $8,599
Annual healthcare cost: $5,950
Annual utility cost: $5,247
Annual education cost: $2,378
Annual child care cost: $17,055
Annual mortgage cost: $11,004
Total annual costs: $62,441.17

True cost of the American dream: $124,882

11. Ohio

Annual grocery cost: $11,534.18
Annual pet care cost: $802.21
Annual car cost: $8,356
Annual healthcare cost: $5,914
Annual utility cost: $4,975
Annual education cost: $2,483
Annual child care cost: $17,592
Annual mortgage cost: $11,460
Total annual costs: $63,116.04

True cost of the American dream: $126,232

12. Tennessee

Annual grocery cost: $10,864.68
Annual pet care cost: $773.50
Annual car cost: $8,497
Annual healthcare cost: $5,351
Annual utility cost: $5,050
Annual education cost: $2,394
Annual child care cost: $16,199
Annual mortgage cost: $14,052
Total annual costs: $63,181.29

True cost of the American dream: $126,363

13. New Mexico

Annual grocery cost: $12,121.46
Annual pet care cost: $795.25
Annual car cost: $8,503
Annual healthcare cost: $6,176
Annual utility cost: $4,688
Annual education cost: $2,461
Annual child care cost: $16,226
Annual mortgage cost: $12,972
Total annual costs: $63,942.71

True cost of the American dream: $127,885

14. Iowa

Annual grocery cost: $11,346.25
Annual pet care cost: $800.47
Annual car cost: $8,071
Annual healthcare cost: $5,999
Annual utility cost: $5,247
Annual education cost: $2,478
Annual child care cost: $19,011
Annual mortgage cost: $11,316
Total annual costs: $64,268.26

True cost of the American dream: $128,537

15. Georgia

Annual grocery cost: $11,557.67
Annual pet care cost: $788.29
Annual car cost: $8,716
Annual healthcare cost: $5,968
Annual utility cost: $4,741
Annual education cost: $2,440
Annual child care cost: $15,836
Annual mortgage cost: $14,604
Total annual costs: $64,651.46

True cost of the American dream: $129,303

16. Idaho

Annual grocery cost: $10,876.43
Annual pet care cost: $816.13
Annual car cost: $8,691
Annual healthcare cost: $6,030
Annual utility cost: $4,518
Annual education cost: $2,526
Annual child care cost: $13,927
Annual mortgage cost: $17,928
Total annual costs: $65,311.67

True cost of the American dream: $130,623

17. Michigan

Annual grocery cost: $10,230.42
Annual pet care cost: $778.72
Annual car cost: $8,722
Annual healthcare cost: $5,657
Annual utility cost: $5,172
Annual education cost: $2,410
Annual child care cost: $19,751
Annual mortgage cost: $12,888
Total annual costs: $65,609.08

True cost of the American dream: $131,218

18. Kansas

Annual grocery cost:$10,982.14
Annual pet care cost: $779.59
Annual car cost: $8,631
Annual healthcare cost: $5,975
Annual utility cost: $5,465
Annual education cost: $2,413
Annual child care cost: $20,020
Annual mortgage cost: $12,036
Total annual costs: $66,301

True cost of the American dream: $132,602

19. North Dakota

Annual grocery cost: $12,497.32
Annual pet care cost: $857.03
Annual car cost: $8,496
Annual healthcare cost: $6,812
Annual utility cost: $4,890
Annual education cost: $2,653
Annual child care cost: $17,312
Annual mortgage cost: $13,356
Total annual costs: $66,872.88

True cost of the American dream: $133,746

20. Indiana

Annual grocery cost: $10,911.66
Annual pet care cost: $787.42
Annual car cost: $8,590
Annual healthcare cost: $5,810
Annual utility cost: $5,151
Annual education cost: $2,437
Annual child care cost: $22,170
Annual mortgage cost: $11,028
Total annual costs: $66,884.47

True cost of the American dream: $133,769

21. North Carolina

Annual grocery cost: $11,322.76
Annual pet care cost: $821.35
Annual car cost: $8,423
Annual healthcare cost: $6,708
Annual utility cost: $5,044
Annual education cost: $2,542
Annual child care cost: $17,593
Annual mortgage cost: $15,120
Total annual costs: $67,574.10

True cost of the American dream: $135,148

22. Wyoming

Annual grocery cost: $11,839.56
Annual pet care cost: $832.66
Annual car cost: $9,245
Annual healthcare cost: $6,023
Annual utility cost: $4,597
Annual education cost: $2,577
Annual child care cost: $19,657
Annual mortgage cost: $13,740
Total annual costs: $68,512.04

True cost of the American dream: $137,024

23. Texas

Annual grocery cost: $10,488.82
Annual pet care cost: $796.12
Annual car cost: $8,858
Annual healthcare cost: $5,852
Annual utility cost: $5,385
Annual education cost: $2,464
Annual child care cost: $16,386
Annual mortgage cost: $18,384
Total annual costs: $68,614.21

True cost of the American dream: $137,228

24. Florida

Annual grocery cost: $12,368.12
Annual pet care cost: $862.25
Annual car cost: $8,650
Annual healthcare cost: $5,883
Annual utility cost: $5,475
Annual education cost: $2,669
Annual child care cost: $16,520
Annual mortgage cost: $17,088
Total annual costs: $69,515.64

True cost of the American dream: $139,031

25. Montana

Annual grocery cost: $12,285.90
Annual pet care cost: $913.58
Annual car cost: $8,099
Annual healthcare cost: $6,195
Annual utility cost: $4,470
Annual education cost: $2,828
Annual child care cost: $17,883
Annual mortgage cost: $17,748
Total annual costs: $70,421.64

True cost of the American dream: $140,843

26. Pennsylvania

Annual grocery cost: $11,816.07
Annual pet care cost: $859.64
Annual car cost: $8,514
Annual healthcare cost: $5,639
Annual utility cost: $5,715
Annual education cost: $2,661
Annual child care cost: $21,614
Annual mortgage cost: $13,704
Total annual costs: $70,522.07

True cost of the American dream: $141,044

27. Delaware

Annual grocery cost: $13,061.11
Annual pet care cost: $931.85
Annual car cost: $8,127
Annual healthcare cost: $6,097
Annual utility cost: $5,156
Annual education cost: $2,884
Annual child care cost: $19,897
Annual mortgage cost: $15,420
Total annual costs: $71,573.79

True cost of the American dream: $143,148

28. Maine

Annual grocery cost: $12,732.23
Annual pet care cost: $1,020.60
Annual car cost: $8,671
Annual healthcare cost: $7,264
Annual utility cost: $5,853
Annual education cost: $3,159
Annual child care cost: $17,741
Annual mortgage cost: $15,372
Total annual costs: $71,812.53

True cost of the American dream: $143,625

29. Nebraska

Annual grocery cost: $11,334.50
Annual pet care cost: $803.08
Annual car cost: $8,325
Annual healthcare cost: $6,072
Annual utility cost: $4,853
Annual education cost: $2,486
Annual child care cost: $23,991
Annual mortgage cost: $14,220
Total annual costs: $72,084.68

True cost of the American dream: $144,169

30. Utah

Annual grocery cost: $11,863.06
Annual pet care cost: $857.03
Annual car cost: $9,096
Annual healthcare cost: $5,840
Annual utility cost: $4,879
Annual education cost: $2,653
Annual child care cost: $17,591
Annual mortgage cost: $19,392
Total annual costs: $72,171.65

True cost of the American dream: $144,343

31. Arizona

Annual grocery cost: $11,616.40
Annual pet care cost: $878.78
Annual car cost: $9,317
Annual healthcare cost: $5,877
Annual utility cost: $6,311
Annual education cost: $2,720
Annual child care cost: $19,495
Annual mortgage cost: $16,068
Total annual costs: $72,282.74

True cost of the American dream: $144,565

32. Wisconsin

Annual grocery cost: $11,428.47
Annual pet care cost: $837.88
Annual car cost: $8,417
Annual healthcare cost: $6,903
Annual utility cost: $5,247
Annual education cost: $2,593
Annual child care cost: $22,764
Annual mortgage cost: $15,036
Total annual costs: $73,226.02

True cost of the American dream: $146,452

33. Illinois

Annual grocery cost: $11,287.52
Annual pet care cost: $826.57
Annual car cost: $8,891
Annual healthcare cost: $6,097
Annual utility cost: $5,140
Annual education cost: $2,558
Annual child care cost: $24,174
Annual mortgage cost: $16,788
Total annual costs: $75,761.96

True cost of the American dream: $151,524

34. Nevada

Annual grocery cost: $12,790.96
Annual pet care cost: $950.12
Annual car cost: $9,888
Annual healthcare cost: $6,543
Annual utility cost: $4,842
Annual education cost: $2,941
Annual child care cost: $20,459
Annual mortgage cost: $17,904
Total annual costs: $76,317.93

True cost of the American dream: $152,636

35. Virginia

Annual grocery cost: $11,369.74
Annual pet care cost: $881.39
Annual car cost: $8,255
Annual healthcare cost: $6,042
Annual utility cost: $5,220
Annual education cost: $2,728
Annual child care cost: $24,929
Annual mortgage cost: $16,992
Total annual costs: $76,416.83

True cost of the American dream: $152,834

36. Vermont

Annual grocery cost: $12,978.89
Annual pet care cost: $1,017.12
Annual car cost: $8,813
Annual healthcare cost: $6,231
Annual utility cost: $6,236
Annual education cost: $3,148
Annual child care cost: $24,529
Annual mortgage cost: $17,496
Total annual costs: $80,449.40

True cost of the American dream: $160,899

37. New Hampshire

Annual grocery cost: $11,851.31
Annual pet care cost: $943.16
Annual car cost: $7,980
Annual healthcare cost: $7,129
Annual utility cost: $6,124
Annual education cost: $2,919
Annual child care cost: $23,140
Annual mortgage cost: $20,724
Total annual costs: $80,811.14

True cost of the American dream: $161,622

38. Maryland

Annual grocery cost: $12,743.98
Annual pet care cost: $1,132.84
Annual car cost: $8,659
Annual healthcare cost: $5,461
Annual utility cost: $5,619
Annual education cost: $3,506
Annual child care cost: $25,589
Annual mortgage cost: $18,708
Total annual costs: $81,419.24

True cost of the American dream: $162,838

39. Minnesota

Annual grocery cost: $12,532.56
Annual pet care cost: $886.61
Annual car cost: $8,833
Annual healthcare cost: $6,757
Annual utility cost: $5,268
Annual education cost: $2,744
Annual child care cost: $28,338
Annual mortgage cost: $16,140
Total annual costs: $81,498.51

True cost of the American dream: $162,997

40. Rhode Island

Annual grocery cost: $12,532.56
Annual pet care cost: $1,051.92
Annual car cost: $8,288
Annual healthcare cost: $6,720
Annual utility cost: $6,641
Annual education cost: $3,256
Annual child care cost: $24,383
Annual mortgage cost: $20,148
Total annual costs: $83,019.98

True cost of the American dream: $166,040

41. Oregon

Annual grocery cost: $13,143.33
Annual pet care cost: $1,158.07
Annual car cost: $8,145
Annual healthcare cost: $6,915
Annual utility cost: $4,635
Annual education cost: $3,584
Annual child care cost: $23,677
Annual mortgage cost: $21,912
Total annual costs: $83,169.38

True cost of the American dream: $166,339

42. Alaska

Annual grocery cost: $16,279.40
Annual pet care cost: $1,128.49
Annual car cost: $7,954
Annual healthcare cost: $8,962
Annual utility cost: $7,822
Annual education cost: $3,493
Annual child care cost: $22,207
Annual mortgage cost: $16,920
Total annual costs: $84,765.66

True cost of the American dream: $169,531

43. Colorado

Annual grocery cost: $11,957.02
Annual pet care cost: $921.41
Annual car cost: $8,500
Annual healthcare cost: $6,280
Annual utility cost: $4,629
Annual education cost: $2,852
Annual child care cost: $27,715
Annual mortgage cost: $22,212
Total annual costs: $85,066.75

True cost of the American dream: $170,134

44. New Jersey

Annual grocery cost: $12,837.94
Annual pet care cost: $1,091.08
Annual car cost: $8,724
Annual healthcare cost: $6,359
Annual utility cost: $5,507
Annual education cost: $3,377
Annual child care cost: $23,843
Annual mortgage cost: $23,688
Total annual costs: $85,427.72

True cost of the American dream: $170,855

45. Washington

Annual grocery cost: $12,661.76
Annual pet care cost: $958.83
Annual car cost: $8,805
Annual healthcare cost: $7,257
Annual utility cost: $4,768
Annual education cost: $2,968
Annual child care cost: $25,605
Annual mortgage cost: $23,772
Total annual costs: $86,795.69

True cost of the American dream: $173,591

46. Connecticut

Annual grocery cost: $13,096.34
Annual pet care cost: $1,121.53
Annual car cost: $8,374
Annual healthcare cost: $6,983
Annual utility cost: $6,907
Annual education cost: $3,471
Annual child care cost: $28,232
Annual mortgage cost: $21,432
Total annual costs: $89,616.12

True cost of the American dream: $179,232

47. New York

Annual grocery cost: $13,155.07
Annual pet care cost: $1,177.21
Annual car cost: $8,628
Annual healthcare cost: $6,366
Annual utility cost: $5,688
Annual education cost: $3,644
Annual child care cost: $27,752
Annual mortgage cost: $24,456
Total annual costs: $90,866.01

True cost of the American dream: $181,732

48. California

Annual grocery cost: $13,953.77
Annual pet care cost: $1,210.28
Annual car cost: $9,384
Annual healthcare cost: $6,824
Annual utility cost: $6,268
Annual education cost: $3,746
Annual child care cost: $28,420
Annual mortgage cost: $29,076
Total annual costs: $98,881.94

True cost of the American dream: $197,764

49. Massachusetts

Annual grocery cost: $13,389.98
Annual pet care cost: $1,167.64
Annual car cost: $8,251
Annual healthcare cost: $7,245
Annual utility cost: $5,896
Annual education cost: $3,614
Annual child care cost: $36,008
Annual mortgage cost: $26,952
Total annual costs: $102,523.57

True cost of the American dream: $205,047

50. Hawaii

Annual grocery cost: $19,485.95
Annual pet care cost: $1,671.42
Annual car cost: $8,692
Annual healthcare cost: $7,203
Annual utility cost: $8,700
Annual education cost: $5,173
Annual child care cost: $22,667
Annual mortgage cost: $29,796
Total annual costs: $103,387.72

True cost of the American dream: $206,775

More From GOBankingRates

Methodology: GOBankingRates determined the true cost of the American dream by defining the American dream as a married couple with two children living in a house for four and owning a home, car and pet. From there, all the states were analyzed according to the following criteria: (1) annual cost of groceries, based on the U.S. Department of Agriculture’s average monthly figures for children ages 2-11 — coming out to $11,745.60 annually on the national level — which was then adjusted to each state’s cost of living using the Missouri Economic Research and Information Center’s cost-of-living indices; (2) pet care costs, based on the average annual cost of a small dog, medium dog, large dog and cat, sourced from the American Society for the Prevention of Cruelty to Animals, which was then adjusted to each state’s cost of living; (3) annual mortgage, based on the state’s median home listing price, sourced from Zillow’s July 2019 index, plus a 20% down payment and a 3.49% 30-year fixed mortgage, based on the Sept. 5, 2019, rate from Freddie Mac and the average state property tax rate; (4) annual healthcare costs, (5) utility costs and (6) education costs, which were adjusted to each state’s cost of living and based on the Bureau of Labor Statistics’ 2018 Consumer Expenditure Survey, using the consumer unit “Married Couple with Children — Total” since the average consumer unit size was four people; and (7) annual cost of child care for two children, sourced from the Economic Policy Institute. All these annual costs were added up, representing 50% of a household’s income devoted to necessities, and then doubled (to account for 30% discretionary spending plus 20% for savings) to determine the “true cost of the American dream.” All data used to conduct this study was compiled and verified on Sept. 11, 2019.