UPDATED 7.06pm US President Barack Obama will use his final address to declare his faith in all Americans to bring about change.

Mr Obama is in his hometown of Chicago where he has given his final speech after two terms in the White House.

President Obama used his final address as President to reflect on what he's achieved saying when he took on the presidency there was a lot he wanted to do.

"If I had told you that we would win marriage equality and secure the right to health insurance for another 20 million of our fellow citizens. If I told you all that you might have said our sights were set a little too high, but that's what we did."

He said race relations are better than they were 10 years ago, but they're still not where they need to be.

For racism to end, discrimination laws need to be upheld, he said.

"But laws alone won't be enough hearts must change. They won't change overnight. Social attitudes often times take generations to change."

President Obama lay down a challenge to his successor over healthcare.

Mr Obama said healthcare costs are rising at the slowest rate in fifty years - and that's something he's proud of.

"I've said, and I mean it, if anyone can put together a plan that is demonstrably better than the improvements that we've made to our health care system, that covers as many people, at least cost, I will publicly support it."

Mr Obama thanked the American people for making him the man he's become.

He said over the past few weeks many people have expressed their gratitude to him but he needs to thank the American people for the conversations they've had with him.

"Those conversations are what have kept me honest and kept me inspired and kept me going. Every day I have learned from you. You made me a better President, and you made me a better man."