What is the Average Cost of Living in the US in 2025?

Thinking about moving or planning a budget in America? The cost of living in the US changes a lot depending on where you live. In 2025, the national cost-of-living index is 64.8, and the median index is around 70.4. These numbers show a country split between affordable regions and expensive urban hubs.

California (144.8) and New York (123.3) are among the costliest states. By contrast, Texas (94.4) and Florida (102.8) are more affordable. Therefore, your money stretches much further in the South and Midwest than on the coasts.

What is the Average Cost of Living in the US in 2025?

To live comfortably in America today, you’ll need about $83,730 a year. That’s the national baseline. However, in big cities, middle-class comfort starts closer to $74,225.

Here’s how typical monthly expenses stack up:

• Rent: Around $1,711 for a 0–2 bedroom unit
• Utilities: About $242, including electricity, heating, and water
• Groceries: Based on the national baseline index of 100
• Transportation: Roughly $12,000 annually if you own a car
• Healthcare: About $13,492 per person each year
• Childcare: Around $9,600 annually for center-based care

Costs shift depending on where you live. On the coasts, housing and groceries are higher—sometimes 25% above the national average. In contrast, the Midwest and South often pay 5–15% less for groceries and housing.

Housing and Rental Market Across US Regions

Housing is the biggest factor in cost-of-living differences within the US housing market.

• California: Median home prices reach $884,050—112% above the US average—fueled by tech and entertainment jobs.
• Texas: More affordable at $346,900, or 17% below the national average. Houston rents are about 30% cheaper, making it appealing for families.
• Florida: Homes average $403,000, just under the national average. However, Miami rents jump to $2,700, which is 58% higher than average.
• New York City: Rent sits at $4,048 a month, or 147% above the US average.
• Chicago: At $1,860, rents are only 9% higher than the national figure, balancing cost with big-city living.

So, if housing is your top concern, Texas and the Midwest may stretch your dollars further.

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Utilities and Other Living Expenses in the US

Utilities cost an average of $242 per month, but they vary widely.

• High-cost states: Hawaii, California, and New England, where bills run 20–35% above average.
• Lower-cost states: Texas and Georgia, where utilities are 5–15% cheaper.

Other daily costs also matter:

• Groceries: 10–25% more on the coasts, but 5–15% cheaper in the South and Midwest.
• Gasoline: The national average is $3.84 per gallon. California drivers usually pay more, while Texas drivers pay less.
• Public transportation: A New York MetroCard costs $132 monthly. Meanwhile, car-heavy cities like Houston trade transit passes for fuel and insurance bills.

Income & Salary Landscape

The national median income is $83,730, but what you need depends heavily on your city:

• New York City: Expect to need $100,000 or more to stay comfortable.
• Houston: Around $43,000 may be enough.
• Miami & Chicago: In the $56,000–$59,000 range.

Even though salaries are higher in cities like New York or San Francisco, they don’t always keep up with the steep costs of living there.

Is the Cost of Living in the US Worth It?

That depends on what you value. Coastal cities give you career opportunities, nightlife, and cultural perks. However, you’ll pay a premium for the experience.

On the other hand, living in the South or Midwest often means cheaper housing, lower utility bills, and less financial stress—though sometimes at the cost of big-city excitement.

Regional Insights

• California: High housing costs driven by tech and entertainment.
• New York: Sky-high rents thanks to finance and dense urban life.
• Texas: A business-friendly hub with affordable housing and utilities.
• Florida: Retiree-friendly and weather-driven demand keeps housing steady.

Tips for Budgeting or Relocating

• Compare housing prices against your income.
• Don’t forget childcare and healthcare—they vary a lot.
• Consider whether you’ll drive or rely on public transit.
• Keep an eye on local wage trends so your salary matches costs.

Final Thoughts on the Cost of Living in the US

The average cost of living in the US in 2025 is a mix of affordable heartland regions and expensive coastal hubs. National numbers give you a starting point, but the real story is local.

If you’re planning a move, weigh the trade-off between cost, career options, and lifestyle. That balance will guide where you’ll feel most at home.

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