Even as inflation cools, many Americans are still struggling to keep up with the cost of living.
Federal data from the U.S. Census Bureau, Bureau of Labor Statistics and state financial reports reveal that in several states, residents face a sharper squeeze from rising housing costs, stagnant wages and higher debt loads.
From the Gulf Coast to the Great Plains and Pacific Northwest, people living in these 10 states might struggle with money. See if your state makes the list.
Ohio
According to RentCafe, Ohio’s cost of living is approximately 8% below the U.S. average, but many of the state’s top occupations pay wages that still fall closer to poverty thresholds, per the U.S. Bureau of Labor Statistics (BLS). As jobs stagnate and household incomes fail to keep pace with even modest costs, according to Ohio’s Department of Job and Family Services, residents face pressure despite relatively affordable housing.
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Michigan
In Michigan, nearly 41% of households live below the state’s survival-budget threshold according to United for Alice. An estimated 14% live in poverty and another 27% classified as Alice (Asset Limited, Income Constrained, Employed). With a median household income of $72,400, per USAFacts, rising housing and transportation costs continue to stretch working families across the state.
Iowa
According to United for Alice, about 37% of Iowa households earn above the federal poverty line but still can’t afford basic necessities like housing, childcare and food. The state’s median household income of $75,500, according to USAFacts, is close to the national figure but hasn’t kept pace with inflation in everyday essentials.
Georgia
With a median household income of $80,000, per USAFacts, Georgia’s cost of living is 4% higher than the national average. While most daily necessities, such as housing, utilities, food and healthcare, are below the national average, the costs for clothing, entertainment and grooming are 32% higher. Many residents are making up the gap with credit cards. Credit card use in the state rose 4.1% in 2024, according to Experian data.
Florida
Florida’s sunny image hides a deep affordability crisis, especially in housing and insurance. Per Redfin, some Florida neighborhoods have experienced a 60% increase in home prices, while home insurance premiums are among the highest in the nation, according to the Insurance Information Institute. Florida’s minimum wage increased to $14 an hour. However, advocates said the wage increase isn’t enough for most people to make ends meet, according to the Florida Policy Institute.
Alabama
With a median household income of around $66,700, Alabama remains one of the lowest-income states in the U.S., according to USAFacts. Even with below-average housing costs, about 46% of Alabama households fall below the Alice threshold, meaning they earn too much to be considered poor but not enough to cover basic living expenses.
Nevada
Nevada’s median household income is about $81,000, per USAFacts. Las Vegas city officials reported that 31.5% and 25% of residents, respectively, were either “burdened” or “excessively burdened” by housing costs. Residents also carry heavy consumer debt. The state’s average credit-card balance is $7,308, with a utilization rate of 33%, both of which are among the nation’s highest, per Experian.
Oregon
According to Oregon Housing and Community Services, Oregon’s residents face one of the country’s most severe housing affordability gaps, with a median home value nearly $500,000, per Zillow. Rising energy costs are also adding to daily expenses. Oregon energy officials reported that residential prices have increased by 30% in four years, citing data from the U.S. Energy Information Administration.
Pennsylvania
Pennsylvania’s median household income is $73,800, according to USAFacts. While wages for Pennsylvania workers have increased in recent years, rising prices for food and other daily expenses isn’t enough to keep pace, per the Keystone Research Center.
Maine
Maine’s cost of living is approximately 13% higher than the national average, primarily driven by elevated housing costs that now average around $402,500, according to the Maine Real Estate Information System. The state’s median household income is $76,400, leaving many residents feeling the gap between wages and what it takes to live comfortably in New England.
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This article originally appeared on GOBankingRates.com: People Living in These 10 States Might Struggle With Money — See If Your State Makes the List
