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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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This article originally appeared on GOBankingRates.com: The True Cost of the American Dream in Every State
