Cost of Living in Hot Springs, AR

An Overview of Cost of Living in Hot Springs, AR

Understanding the cost of living in Hot Springs 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 Hot Springs cost of living index is 89, which is 11% lower 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.

What Do Locals Say About the Cost of Living in Hot Springs?

Nobody knows their city better than the people who actually live there. So, we asked 8 local residents how they would rate the cost of living in Hot Springs and this is how they responded. 38% of people said that the cost of living was affordable, with prices decreasing, while 63% of people said that the cost of living was very expensive and prices continue to rise.

Is Hot Springs Affordable?

Is Hot Springs an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Hot Springs, the median home price is 31% lower than what most folks pay across the country, and monthly rent prices are 21.1% lower than the usual rates. Income levels in Hot Springs come in at $40,125, which is 27.5% lower than the national average.

What Factors can Influence the Cost of Living in Hot Springs?

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.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Hot Springs, the healthcare costs are 11.2% lower than the national average.

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Hot Springs, the baseline sales tax rate begins at 6.5%, and income tax rates start at 2%.

Where is the Data From?

The Hot Springs 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.