Bustling Midwest city tops new study of most affordable places to live in America

The vibrant Midwestern city of Detroit has been named the most affordable city in the US.

This is evident from a new report from the online bill payment platform Doxo.

The great Michigan city, birthplace of Motown, has taken the top spot for the third year in a row.

According to Doxo, monthly expenses in the city average $1,640, which is 23 percent less than the average cost in the U.S. as a whole.

The Doxo report, which analyzes household spending in the 50 largest U.S. cities, is based on actual billing data.

It calculates the average monthly costs for ten essential household bills, including rent, utilities and insurance, and compares cities to the national average.

But while the cost of living in Detroit is low compared to the rest of the country, bills in the city take up a significant portion of the average household’s $37,360 income.

“In Detroit, household bills represent 53 percent of household income, making it a great city for those looking for a lower cost of living, but also highlighting economic challenges,” Liz Powell, senior director of Insights at Doxo, told me . Forbes.

That, according to Doxo, is compared to the national average, where the average household spends 34 percent of its income on bills.

According to the report, the average American household spends $2,126 per month on essential bills.

Despite high inflation, monthly spending in Detroit has remained relatively stable, further strengthening Detroit’s position as the most affordable city in America.

The so-called ‘Motor City’ was once an industrial powerhouse and home to the largest automakers in the US.

But the demise of the major automakers, coupled with the mortgage crisis, drove millions of people from their homes in the 2000s as their properties were left worthless.

Less than 20 years ago, one in five homes in the city stood empty, as foreclosures soared and properties on deserted streets sold for $1.

But as the auto industry – this time with an emphasis on electric vehicles – starts to get back up to speed, the… The value of homes in the city has risen rapidly.

Despite the short-term price increase, Detroit still remains affordable, as much of the growth has been catching up after years of decline.

And Detroit isn’t the only affordable Midwestern city on the list.

According to Doxo, monthly expenses in Detroit average $1,640, which is 23 percent less than the average cost in the U.S. as a whole

As the auto industry – this time with an emphasis on electric vehicles – starts to get back up to speed, Detroit home values ​​have risen rapidly

The mortgage crisis and the fall of the major automakers into bankruptcy drove millions of people from their homes in Detroit (photo: abandoned properties in 2015)

Two Ohio cities ranked next – with Cleveland as the second most affordable place to live in America, followed by Dayton.

In Cleveland, monthly expenses average $1,735, which is 18 percent below the national average, while in Dayton, costs are 17 percent cheaper than the national average of $1,773.

Indianapolis also rounded out the top 10, where household bills are 7 percent below the national average.

“The findings show that Midwestern cities have among the lowest average household expenses, offering an alternative for Americans looking to save on essential bills,” Powell told Forbes.

On the other end of the spectrum, Doxo named San Jose, California, as the least affordable place to live in America.

Here, in the heart of Silicon Valley, residents pay an average of $3,695 per month in household bills.

This is no less than 74 percent above the national average.

The second most expensive city is New York, followed by Boston and San Francisco.

The rankings haven’t changed much since Doxo started this report in 2022, Powell told Forbes.

“Although the same four cities top the list of most expensive cities in both 2023 and 2024, the order has shifted slightly this year,” she said.