Cost of Living in Durham, NC

An Overview of Cost of Living in Durham, NC

Getting a feel for the cost of living in Durham is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Durham is 105, which is 5% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

Everyday expenditures like food, housing, goods and services, transportation and health care in Durham are priced in a manner consistent with other areas. This means that residents of Durham can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

Housing costs are a major factor in the Durham cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 26.8% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Durham?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 28 locals to understand their opinions on the cost of living in Durham. The results indicated that 79% found it reasonably priced with decreasing prices of goods and services, while 21% viewed it as quite expensive, with increasing prices.

Is Durham Affordable?

Is Durham affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Durham, for instance, where the median home price falls 31.6% higher than the national average, and monthly rent rates are 15.7% higher than usual. Additionally, median income levels contribute to the equation, with Durham flaunting a median household income of $61,962, 12% higher than the national norm.

What Factors can Influence the Cost of Living in Durham?

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Durham, the groceries index is 2.5% higher than the national average.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Durham, the transportation index is 11.2% lower than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Durham, the standard sales tax rate starts at 4.75%, and the income tax rates commence at 4.99%.

Where is the Data From?

The Durham cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.