F
34%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
81%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Federal Way Washington National
Cost of living134118100
Goods & Services117111100
Groceries113110100
Health care125120100
Housing181135100
Transportation124123100
Utilities9592100

An Overview of Cost of Living in Federal Way, WA

Getting a feel for the cost of living in Federal Way 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 Federal Way is 134, which is 34% 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.

The cost of living in Federal Way is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Federal Way falls into this category, which may not be suitable for those seeking an economically favorable living environment.

When it comes to the cost of living in Federal Way, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 80.7% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Federal Way, you you will have to spend 17.1% more than average when compared to the typical prices for these items, making it a more expensive place to live.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Federal Way is even less favorable, with grocery prices here being 13.1% higher than the national average.

What Do Locals Say About the Cost of Living in Federal Way?

The most insightful perspective on a city comes from its residents. We recently surveyed 8 locals to gauge their perception of the cost of living in Federal Way. The feedback revealed that 38% of respondents found the cost of living to be reasonable, with prices on the decline, while 63% regarded it as notably expensive with prices that continue to rise.

Is Federal Way Affordable?

Is Federal Way 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 Federal Way, for instance, where the median home price falls 94.4% higher than the national average, and monthly rent rates are 48.7% higher than usual. Additionally, median income levels contribute to the equation, with Federal Way flaunting a median household income of $68,672, 24.1% higher than the national norm.

What Factors can Influence the Cost of Living in Federal Way?

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Federal Way, the utilities index is 5.2% lower than the national average.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Federal Way, the groceries index is 13.1% higher than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Where is the Data From?

The Federal Way 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.

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Cost Of Living Quick Facts

  • The cost of living in Federal Way is 14% higher than the Washington average
  • The cost of living in Federal Way is 34% higher than the national average
  • Federal Way housing is 81% higher than the national average
  • Washington general sales tax is 27% higher than the national average
  • Washington state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Federal Way

See all the best places to live around Federal Way

Compare Federal Way, WA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$95,840$7,987$2,236$2,875
      Renters$51,192$4,266$1,194$1,536
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Federal Way, WA, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Federal Way, homeowners have a median income of $95,840. Using that number, a maximum of $2,236 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $51,192, which means there is a maximum of $1,194 to be spent on the costs of renting a home or apartment.

      Washington Sales Tax

      State General Sales Tax With Max Surtax
      Washington 6.5% 10.4%

      Washington Income Tax

      State Income Tax (Low) Income Tax (High)
      Washington 0% 0%

      Goods & Services

      Item Federal Way National avg. Difference
      Haircut $23.76$24.262.1%
      Beauty Salon $54.27$45.5619.1%
      Toothpaste $4.15$3.7012.1%
      Shampoo $1.38$1.287.6%
      Movie $11.92$12.131.8%
      Bowling $21.09$18.0017.2%

      Groceries

      Item Federal Way National avg. Difference
      Ground Beef $5.71$5.842.2%
      Fried Chicken $2.55$1.5762.3%
      Milk $5.14$4.6710.0%
      Potatoes $3.87$4.9321.6%
      Pizza $15.13$12.0925.2%
      Beer $11.74$10.4112.8%

      Health Care

      Item Federal Way National avg. Difference
      Optometrist $191.81$125.6852.6%
      Doctor $192.99$135.7842.1%
      Dentist $127.12$113.2912.2%
      Ibuprofen $11.85$10.6511.2%
      Lipitor $555.70$468.6018.6%

      Housing

      Item Federal Way National avg. Difference
      Home Price $359,000.00$184,700.0094.4%
      Avg. Mortgage Payment $3,051.24$2,346.6930.0%
      Apartment Rent $1,411.00$949.0048.7%

      Transportation

      Item Federal Way National avg. Difference
      Gasoline $4.20$3.4621.3%
      Tire Balancing $78.74$59.9231.4%

      Utilities

      Item Federal Way National avg. Difference
      All Electricity $169.30$193.9912.7%
      Phone $204.78$192.256.5%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Ketron Island, WA011514.6%
      Fairwood CDP (Spokane County), WA8,05511413.7%
      North Puyallup, WA1,97011515.1%
      Midland, WA9,51811817.9%
      Parkland, WA37,94612120.6%
      Federal Way, WA96,81213434.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Nampa, ID96,8251033.3%
      Albany, NY96,8601032.6%
      Erie, PA96,6168812.4%
      Bend, OR97,03213332.6%
      Lawrence, KS97,348981.8%
      Federal Way, WA96,81213434.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.