The Second-Best State To Live In Is Also Ideal For Building Wealth

Idaho isn't just a scenic gem with affordable towns for retirees. It's also ranked as the second-best state to live in and offers one of the strongest environments for building long-term wealth, according to WalletHub's 2025 Best States to Live In analysis. The report compared all 50 states across 51 key metrics, ranging from affordability and education quality to safety, health care, and overall quality of life.

Idaho stood out for having the highest income growth in the nation, based on a comparison of 2019 and 2023 median annual household incomes. Its schools and healthcare access also ranked favorably, while its crime rate is the second lowest in the country. Residents also enjoy shorter commute times than those in more populated states, which can contribute to overall life satisfaction. These factors make the state an appealing option for families and young professionals focusing on their career. Combining WalletHub's findings with the breadth of outdoor recreational opportunities that the state is known for, it is clear why Idaho earned its spot as one of the best states to live in.

WalletHub gave Idaho a high economy score, which reflected the state's strong income growth, job opportunities, and business development. Idaho remains an affordable state, unlike many others, including Massachusetts, which has one of the highest costs of living for individuals. Although it's not among the group of states without an income tax, Idaho does boast one of the lowest tax burdens in the nation. It has a flat income tax rate of 5.69% and a sales tax of just 6%. With low taxes and strong incomes, residents are able to stretch their paychecks further and live comfortably.

Homeownership also plays a major role in wealth creation, and Idaho consistently reports one of the highest ownership rates in the country. According to DataUSA, 72.4% of Idaho residents are homeowners compared to the national average of 65%. Although interest rates have remained higher than they were 10 years ago and during the COVID-19 era, Idaho's housing market remains generally affordable compared to many neighboring states. According to Redfin, the median home price in Idaho sits at $494,700; meanwhile homes in neighboring Utah go for $586,800 on average, while the average home price in Washington state is $630,700. Thanks to Idaho's affordable real estate market, more families have been able to purchase homes and build equity and wealth over time.