Cost of Living in Arlington, TN

An Overview of Cost of Living in Arlington, TN

Understanding the cost of living in Arlington can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Arlington cost of living index is 110, which is 10% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs make up a big chunk of the cost of living in Arlington, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 50% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Is Arlington Affordable?

Is Arlington affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Arlington, the median home price is 39.8% higher than the national average and monthly rent prices are 73.9% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Arlington boasting a median household income of $101,196, 82.9% higher than the national average.

What Factors can Influence the Cost of Living in Arlington?

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Arlington, the prevailing sales tax rate starts at 7%, and income tax rates kick off at 0%.

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Arlington, the groceries index registers 0.2% higher than the national average.

Where is the Data From?

The Arlington cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.