Yahoo Finance The True Cost of the American Dream in Every State
Do you think you can afford the American dream in 2024? 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, owning a home for four along with 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 for two children. All annual costs were added up to represent 50% of a household’s income and doubled to account for 30% of discretionary spending and 20% for savings.
Read More: 5 Vacation Destinations That Middle-Class Families Can’t Afford Anymore
Check Out: Owe Money to the IRS? Most People Don’t Realize They Should Do This One Thing
Ranked from most to least expensive, see the true cost of the American dream in all 50 states.
50. Hawaii
True cost of the American dream: $260,734
Total annual cost: $130,367
Grocery cost per year: $9,697
Pet care costs: $2,290
Annual car costs: $8,692
Median home price: $967,296
Annual mortgage: $64,067
Healthcare annual costs: $9,097
Utilities annual costs: $9,013
Education annual costs: $4,845
Child care annual costs: $22,667
Read Next: 9 American Travel Brands to Stay Away From
Be Aware: 5 Genius Things All Wealthy People Do With Their Money
49. California
True cost of the American dream: $245,723
Total annual cost: $122,861
Grocery cost per year: $9,306
Pet care costs: $1,759
Annual car costs: $8,694
Median home price: $785,294
Annual mortgage: $55,389
Healthcare annual costs: $8,018
Utilities annual costs: $7,553
Education annual costs: $3,721
Child care annual costs: $28,420
Discover More: 8 Tips To Fly Business Class for the Price of Economy
48. Massachusetts
True cost of the American dream: $242,982
Total annual cost: $121,491
Grocery cost per year: $8,749
Pet care costs: $1,861
Annual car costs: $8,693
Median home price: $616,983
Annual mortgage: $45,924
Healthcare annual costs: $8,343
Utilities annual costs: $7,976
Education annual costs: $3,936
Child care annual costs: $36,008
47. Washington
True cost of the American dream: $209,416
Total annual cost: $104,708
Grocery cost per year: $9,123
Pet care costs: $1,473
Annual car costs: $8,697
Median home price: $589,807
Annual mortgage: $42,309
Healthcare annual costs: $8,898
Utilities annual costs: $5,486
Education annual costs: $3,117
Child care annual costs: $25,605
46. New Jersey
True cost of the American dream: $207,462
Total annual cost: $103,731
Grocery cost per year: $8,525
Pet care costs: $1,447
Annual car costs: $8,698
Median home price: $519,941
Annual mortgage: $44,368
Healthcare annual costs: $7,338
Utilities annual costs: $6,451
Education annual costs: $3,060
Child care annual costs: $23,843
45. New Hampshire
True cost of the American dream: $200,291
Total annual cost: $100,145
Grocery cost per year: $8,475
Pet care costs: $1,449
Annual car costs: $8,705
Median home price: $475,398
Annual mortgage: $39,141
Healthcare annual costs: $8,365
Utilities annual costs: $7,804
Education annual costs: $3,066
Child care annual costs: $23,140
Explore More: I’m a Financial Advisor: Here’s Why My Rich Clients Identify With the Middle Class
44. Colorado
True cost of the American dream: $199,235
Total annual cost: $99,617
Grocery cost per year: $8,425
Pet care costs: $1,335
Annual car costs: $8,699
Median home price: $550,989
Annual mortgage: $37,761
Healthcare annual costs: $7,420
Utilities annual costs: $5,439
Education annual costs: $2,824
Child care annual costs: $27,715
43. Connecticut
True cost of the American dream: $197,635
Total annual cost: $98,818
Grocery cost per year: $8,450
Pet care costs: $1,433
Annual car costs: $8,696
Median home price: $409,905
Annual mortgage: $33,175
Healthcare annual costs: $8,033
Utilities annual costs: $7,768
Education annual costs: $3,031
Child care annual costs: $28,232
42. New York
True cost of the American dream: $194,067
Total annual cost: $97,033
Grocery cost per year: $8,575
Pet care costs: $1,599
Annual car costs: $8,695
Median home price: $428,712
Annual mortgage: $33,025
Healthcare annual costs: $7,863
Utilities annual costs: $6,142
Education annual costs: $3,383
Child care annual costs: $27,752
41. Oregon
True cost of the American dream: $190,481
Total annual cost: $95,240
Grocery cost per year: $9,040
Pet care costs: $1,457
Annual car costs: $8,701
Median home price: $494,780
Annual mortgage: $35,789
Healthcare annual costs: $7,782
Utilities annual costs: $5,713
Education annual costs: $3,082
Child care annual costs: $23,677
Try This: Net Worth for US Families: How To Tell if You’re Poor, Middle-Class, Upper Middle-Class or Rich
40. Rhode Island
True cost of the American dream: $190,282
Total annual cost: $95,141
Grocery cost per year: $8,450
Pet care costs: $1,406
Annual car costs: $8,702
Median home price: $448,778
Annual mortgage: $34,571
Healthcare annual costs: $7,959
Utilities annual costs: $6,696
Education annual costs: $2,975
Child care annual costs: $24,383
39. Alaska
True cost of the American dream: $186,207
Total annual cost: $93,104
Grocery cost per year: $10,262
Pet care costs: $1,590
Annual car costs: $8,700
Median home price: $362,644
Annual mortgage: $26,630
Healthcare annual costs: $10,945
Utilities annual costs: $9,406
Education annual costs: $3,364
Child care annual costs: $22,207
38. Maryland
True cost of the American dream: $184,579
Total annual cost: $92,289
Grocery cost per year: $8,841
Pet care costs: $1,480
Annual car costs: $8,704
Median home price: $418,225
Annual mortgage: $30,753
Healthcare annual costs: $7,198
Utilities annual costs: $6,594
Education annual costs: $3,130
Child care annual costs: $25,589
37. Vermont
True cost of the American dream: $184,223
Total annual cost: $92,111
Grocery cost per year: $8,708
Pet care costs: $1,464
Annual car costs: $8,706
Median home price: $375,943
Annual mortgage: $30,577
Healthcare annual costs: $7,833
Utilities annual costs: $7,196
Education annual costs: $3,098
Child care annual costs: $24,529
Check Out: Toilet Paper to Discontinued Items: 7 Ways Shrinkflation Has Come to Costco
36. Virginia
True cost of the American dream: $174,580
Total annual cost: $87,290
Grocery cost per year: $8,359
Pet care costs: $1,294
Annual car costs: $8,707
Median home price: $383,327
Annual mortgage: $27,497
Healthcare annual costs: $7,553
Utilities annual costs: $6,213
Education annual costs: $2,738
Child care annual costs: $24,929
35. Minnesota
True cost of the American dream: $173,850
Total annual cost: $86,925
Grocery cost per year: $8,159
Pet care costs: $1,195
Annual car costs: $8,703
Median home price: $328,696
Annual mortgage: $24,367
Healthcare annual costs: $8,070
Utilities annual costs: $5,564
Education annual costs: $2,528
Child care annual costs: $28,338
34. Utah
True cost of the American dream: $173,440
Total annual cost: $86,720
Grocery cost per year: $8,251
Pet care costs: $1,311
Annual car costs: $8,712
Median home price: $519,469
Annual mortgage: $35,705
Healthcare annual costs: $6,725
Utilities annual costs: $5,653
Education annual costs: $2,773
Child care annual costs: $17,591
33. Nevada
True cost of the American dream: $169,717
Total annual cost: $84,859
Grocery cost per year: $8,550
Pet care costs: $1,283
Annual car costs: $8,708
Median home price: $441,950
Annual mortgage: $30,465
Healthcare annual costs: $6,777
Utilities annual costs: $5,903
Education annual costs: $2,714
Child care annual costs: $20,459
Find Out: A $150K Income Is ‘Lower Middle Class’ In These High-Cost Cities
32. Arizona
True cost of the American dream: $167,693
Total annual cost: $83,847
Grocery cost per year: $8,492
Pet care costs: $1,377
Annual car costs: $8,711
Median home price: $436,307
Annual mortgage: $30,251
Healthcare annual costs: $6,932
Utilities annual costs: $5,677
Education annual costs: $2,913
Child care annual costs: $19,495
31. Montana
True cost of the American dream: $167,336
Total annual cost: $83,668
Grocery cost per year: $8,517
Pet care costs: $1,307
Annual car costs: $8,717
Median home price: $450,517
Annual mortgage: $31,731
Healthcare annual costs: $7,220
Utilities annual costs: $5,528
Education annual costs: $2,765
Child care annual costs: $17,883
30. Maine
True cost of the American dream: $163,625
Total annual cost: $81,813
Grocery cost per year: $8,459
Pet care costs: $1,396
Annual car costs: $8,714
Median home price: $379,011
Annual mortgage: $28,590
Healthcare annual costs: $7,604
Utilities annual costs: $6,356
Education annual costs: $2,953
Child care annual costs: $17,741
29. Wisconsin
True cost of the American dream: $161,510
Total annual cost: $80,755
Grocery cost per year: $8,243
Pet care costs: $1,208
Annual car costs: $8,710
Median home price: $289,236
Annual mortgage: $22,888
Healthcare annual costs: $8,299
Utilities annual costs: $6,088
Education annual costs: $2,555
Child care annual costs: $22,764
Read Next: 7 Popular Clothing Brands the Middle Class Can’t Afford Anymore
28. Delaware
True cost of the American dream: $160,494
Total annual cost: $80,247
Grocery cost per year: $8,475
Pet care costs: $1,284
Annual car costs: $8,715
Median home price: $371,763
Annual mortgage: $25,701
Healthcare annual costs: $7,626
Utilities annual costs: $5,832
Education annual costs: $2,717
Child care annual costs: $19,897
27. Florida
True cost of the American dream: $159,932
Total annual cost: $79,966
Grocery cost per year: $8,267
Pet care costs: $1,279
Annual car costs: $8,718
Median home price: $409,638
Annual mortgage: $29,548
Healthcare annual costs: $7,131
Utilities annual costs: $5,796
Education annual costs: $2,706
Child care annual costs: $16,520
26. Illinois
True cost of the American dream: $156,739
Total annual cost: $78,369
Grocery cost per year: $8,143
Pet care costs: $1,170
Annual car costs: $8,709
Median home price: $255,278
Annual mortgage: $21,401
Healthcare annual costs: $7,021
Utilities annual costs: $5,278
Education annual costs: $2,475
Child care annual costs: $24,174
25. Idaho
True cost of the American dream: $156,593
Total annual cost: $78,296
Grocery cost per year: $8,392
Pet care costs: $1,252
Annual car costs: $8,726
Median home price: $443,630
Annual mortgage: $30,936
Healthcare annual costs: $7,309
Utilities annual costs: $5,105
Education annual costs: $2,649
Child care annual costs: $13,927
Check Out: How Much Household Income Will Be Considered Upper Middle Class in 5 Years?
24. Nebraska
True cost of the American dream: $153,182
Total annual cost: $76,591
Grocery cost per year: $7,960
Pet care costs: $1,154
Annual car costs: $8,713
Median home price: $251,976
Annual mortgage: $19,990
Healthcare annual costs: $7,235
Utilities annual costs: $5,105
Education annual costs: $2,442
Child care annual costs: $23,991
23. Wyoming
True cost of the American dream: $152,110
Total annual cost: $76,055
Grocery cost per year: $8,500
Pet care costs: $1,173
Annual car costs: $8,720
Median home price: $333,745
Annual mortgage: $22,906
Healthcare annual costs: $7,397
Utilities annual costs: $5,218
Education annual costs: $2,483
Child care annual costs: $19,657
22. Pennsylvania
True cost of the American dream: $151,512
Total annual cost: $75,756
Grocery cost per year: $8,267
Pet care costs: $1,214
Annual car costs: $8,716
Median home price: $256,822
Annual mortgage: $20,015
Healthcare annual costs: $6,969
Utilities annual costs: $6,392
Education annual costs: $2,569
Child care annual costs: $21,614
21. North Carolina
True cost of the American dream: $149,883
Total annual cost: $74,941.71
Grocery cost per year: $8,151.13
Pet care costs: $1,210.31
Annual car costs: $8,721
Median home price: $324,113
Annual mortgage: $23,088
Healthcare annual costs: $7,989
Utilities annual costs: $5,629
Education annual costs: $2,561
Childcare annual costs: $17,593
Find Out: 7 Things the Middle Class Won’t Be Able To Afford in the Next 5 Years
20. Texas
True cost of the American dream: $147,535
Total annual cost: $73,767
Grocery cost per year: $7,952
Pet care costs: $1,177
Annual car costs: $8,719
Median home price: $299,474
Annual mortgage: $23,908
Healthcare annual costs: $6,939
Utilities annual costs: $6,195
Education annual costs: $2,491
Child care annual costs: $16,386
19. Indiana
True cost of the American dream: $145,431
Total annual cost: $72,715
Grocery cost per year: $8,184
Pet care costs: $1,156
Annual car costs: $8,722
Median home price: $231,797
Annual mortgage: $16,558
Healthcare annual costs: $7,124
Utilities annual costs: $6,356
Education annual costs: $2,445
Child care annual costs: $22,170
18. Georgia
True cost of the American dream: $144,343
Total annual cost: $72,172
Grocery cost per year: $8,151
Pet care costs: $1,153
Annual car costs: $8,727
Median home price: $323,386
Annual mortgage: $23,359
Healthcare annual costs: $7,412
Utilities annual costs: $5,093
Education annual costs: $2,440
Child care annual costs: $15,836
17. Michigan
True cost of the American dream: $141,808
Total annual cost: $70,904
Grocery cost per year: $8,209
Pet care costs: $1,151
Annual car costs: $8,725
Median home price: $230,579
Annual mortgage: $17,716
Healthcare annual costs: $6,895
Utilities annual costs: $6,023
Education annual costs: $2,434
Child care annual costs: $19,751
Trending Now: 7 Ways the Upper Middle Class Can Become Rich in 2024
16. Kansas
True cost of the American dream: $140,893
Total annual cost: $70,446
Grocery cost per year: $8,076
Pet care costs: $1,106
Annual car costs: $8,724
Median home price: $218,078
Annual mortgage: $16,668
Healthcare annual costs: $7,161
Utilities annual costs: $6,350
Education annual costs: $2,340
Child care annual costs: $20,020
15. Tennessee
True cost of the American dream: $140,557
Total annual cost: $70,279
Grocery cost per year: $8,118
Pet care costs: $1,147
Annual car costs: $8,730
Median home price: $310,207
Annual mortgage: $21,632
Healthcare annual costs: $6,511
Utilities annual costs: $5,516
Education annual costs: $2,426
Child care annual costs: $16,199
14. North Dakota
True cost of the American dream: $140,239
Total annual cost: $70,119
Grocery cost per year: $7,827
Pet care costs: $1,201
Annual car costs: $8,723
Median home price: $252,455
Annual mortgage: $18,387
Healthcare annual costs: $8,218
Utilities annual costs: $5,909
Education annual costs: $2,542
Child care annual costs: $17,312
13. New Mexico
True cost of the American dream: $140,113
Total annual cost: $70,056
Grocery cost per year: $8,010
Pet care costs: $1,194
Annual car costs: $8,729
Median home price: $293,801
Annual mortgage: $20,488
Healthcare annual costs: $7,338
Utilities annual costs: $5,546
Education annual costs: $2,526
Child care annual costs: $16,226
Learn More: How Far a $100,000 Salary Goes in America’s 50 Largest Cities
12. Iowa
True cost of the American dream: $138,014
Total annual cost: $69,007
Grocery cost per year: $8,026
Pet care costs: $1,147
Annual car costs: $8,728
Median home price: $212,618
Annual mortgage: $16,634
Healthcare annual costs: $7,346
Utilities annual costs: $5,689
Education annual costs: $2,426
Child care annual costs: $19,011
11. Ohio
True cost of the American dream: $137,842
Total annual cost: $68,921
Grocery cost per year: $8,425
Pet care costs: $1,203
Annual car costs: $8,731
Median home price: $218,937
Annual mortgage: $17,281
Healthcare annual costs: $7,235
Utilities annual costs: $5,909
Education annual costs: $2,545
Child care annual costs: $17,592
10. South Dakota
True cost of the American dream: $135,319
Total annual cost: $67,659
Grocery cost per year: $8,060
Pet care costs: $1,173
Annual car costs: $8,733
Median home price: $293,085
Annual mortgage: $21,903
Healthcare annual costs: $7,235
Utilities annual costs: $5,212
Education annual costs: $2,483
Child care annual costs: $12,860
9. Missouri
True cost of the American dream: $134,428
Total annual cost: $67,214
Grocery cost per year: $7,918
Pet care costs: $1,124
Annual car costs: $8,732
Median home price: $239,144
Annual mortgage: $17,489
Healthcare annual costs: $6,644
Utilities annual costs: $5,874
Education annual costs: $2,378
Child care annual costs: $17,055
Explore More: What Income Level Is Considered Middle Class in Your State?
8. South Carolina
True cost of the American dream: $133,939
Total annual cost: $66,969
Grocery cost per year: $8,243
Pet care costs: $1,210
Annual car costs: $8,734
Median home price: $289,251
Annual mortgage: $19,881
Healthcare annual costs: $6,984
Utilities annual costs: $6,344
Education annual costs: $2,561
Child care annual costs: $13,013
7. Oklahoma
True cost of the American dream: $124,555
Total annual cost: $62,277
Grocery cost per year: $7,844
Pet care costs: $1,095
Annual car costs: $8,736
Median home price: $200,364
Annual mortgage: $14,413
Healthcare annual costs: $6,843
Utilities annual costs: $5,850
Education annual costs: $2,316
Child care annual costs: $15,181
6. Louisiana
True cost of the American dream: $121,101
Total annual cost: $60,550
Grocery cost per year: $7,894
Pet care costs: $1,156
Annual car costs: $8,735
Median home price: $195,141
Annual mortgage: $13,393
Healthcare annual costs: $7,294
Utilities annual costs: $5,004
Education annual costs: $2,445
Child care annual costs: $14,630
5. West Virginia
True cost of the American dream: $120,559
Total annual cost: $60,279
Grocery cost per year: $8,176
Pet care costs: $1,114
Annual car costs: $8,737
Median home price: $155,333
Annual mortgage: $10,677
Healthcare annual costs: $7,139
Utilities annual costs: $5,701
Education annual costs: $2,356
Child care annual costs: $16,380
Read Next: 6 Industries That Won’t Exist by 2040
4. Alabama
True cost of the American dream: $117,924
Total annual cost: $58,962
Grocery cost per year: $7,985
Pet care costs: $1,121
Annual car costs: $8,739
Median home price: $217,961
Annual mortgage: $14,611
Healthcare annual costs: $6,429
Utilities annual costs: $6,100
Education annual costs: $2,373
Child care annual costs: $11,604
3. Kentucky
True cost of the American dream: $116,815
Total annual cost: $58,407
Grocery cost per year: $8,417
Pet care costs: $1,168
Annual car costs: $8,738
Median home price: $196,576
Annual mortgage: $14,022
Healthcare annual costs: $6,185
Utilities annual costs: $6,219
Education annual costs: $2,472
Child care annual costs: $11,185
2. Arkansas
True cost of the American dream: $116,511
Total annual cost: $58,256
Grocery cost per year: $7,918
Pet care costs: $1,130
Annual car costs: $8,740
Median home price: $198,530
Annual mortgage: $13,785
Healthcare annual costs: $6,466
Utilities annual costs: $5,457
Education annual costs: $2,391
Child care annual costs: $12,368
1. Mississippi
True cost of the American dream: $109,516
Total annual cost: $54,758
Grocery cost per year: $8,076
Pet care costs: $1,096
Annual car costs: $8,741
Median home price: $170,810
Annual mortgage: $11,911
Healthcare annual costs: $7,272
Utilities annual costs: $5,123
Education annual costs: $2,319
Child care annual costs: $10,220
Heather Taylor contributed to the reporting for this piece.
Methodology: GOBankingRates determined the true cost of the American dream by defining the American dream as a married couple with two children, for a house of four; owning a home, pet and car. From there, each state was analyzed according to the following criteria: (1) annual cost of groceries, based on the 2022 Bureau of Labor Statistics 2022 Consumer Expenditure Survey; this was then adjusted to the 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 dog and cat, sourced from the ASPCA; this 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 February 2024 index, plus a 20% down payment, 6.87% 30-year fixed mortgage, based on the March 21, 2024 rate from Freddie Mac and average state property tax rate; (4) annual healthcare costs, (5) utilities costs and (6) educations costs, were based on the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey, using the consumer unit — Married Couple with Children – Total — since the average consumer unit size was four people, adjusted to each state’s cost of living; (7) annual cost of childcare for two children, sourced from the Economic Policy Institute. All these annual costs were added up, representing 50% of a households’ income which should be devoted to necessities, and then doubled (to account for 30% discretionary spending + 20% for savings) to determine the “true cost of the American dream.” All data compiled on April 19, 2024.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: The True Cost of the American Dream in Every State
