A+
4%
Overall NAT. AVG.
7%
Goods & Services NAT. AVG.
23%
Housing NAT. AVG.
Search Homes for Sale
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 Lancaster Pennsylvania National
Cost of living9698100
Goods & Services10799100
Groceries9999100
Health care11094100
Housing7791100
Transportation108106100
Utilities93107100

An Overview of Cost of Living in Lancaster, PA

Are you thinking about relocating, but curious about the potential cost of living in Lancaster? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Lancaster stands at 96, making it 4% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Lancaster aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Lancaster residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Is Lancaster Affordable?

Is Lancaster an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Lancaster is 31% lower than the national average, while the average monthly rent prices are 3.1% lower than average. The affordability of any location can also be influenced by median income levels. Lancaster has a median household income of $49,628, which is 10.3% lower than the national average.

What Factors can Influence the Cost of Living in Lancaster?

Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which 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 Lancaster, the prevailing sales tax rate starts at 6%, and income tax rates kick off at 3.07%.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Lancaster, healthcare costs are 10.1% higher than the national average.

Where is the Data From?

The Lancaster 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.

New Real Estate Listings in Lancaster Area
Search Homes for Sale in Lancaster, PA

Cost Of Living Quick Facts

  • The cost of living in Lancaster is 2% lower than the Pennsylvania average
  • The cost of living in Lancaster is 4% lower than the national average
  • Lancaster housing is 23% lower than the national average
  • Pennsylvania general sales tax is 18% higher than the national average
  • Pennsylvania state income tax is 18% higher than the national average

Most Affordable Places to Live in and Around Lancaster

See all the best places to live around Lancaster

Compare Lancaster, PA Cost of Living

      vs
      How would you rate the cost of living in Lancaster?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Lancaster?
      Write a review to give others more information about this area.
      See all Lancaster poll results

      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$71,893$5,991$1,677$2,157
      Renters$33,953$2,829$792$1,019
      A good way to judge both the affordability of the housing and the cost of living in Lancaster is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Lancaster has a median income of about $71,893 for people who own homes. Based on that number, a maximum of $1,677 should be spent on expenses related to housing. Renters have a slightly different median income, which is $33,953. Based on this average, renters should spend no more than $792 on all rental costs if they want to maintain a non-impoverished standard of living.

      Pennsylvania Sales Tax

      State General Sales Tax With Max Surtax
      Pennsylvania 6% 8%

      Pennsylvania Income Tax

      State Income Tax (Low) Income Tax (High)
      Pennsylvania 3.07% 3.07%

      Goods & Services

      Item Lancaster National avg. Difference
      Haircut $26.17$24.267.9%
      Beauty Salon $40.39$45.5611.4%
      Toothpaste $3.77$3.701.9%
      Shampoo $1.43$1.2811.4%
      Movie $12.52$12.133.2%
      Bowling $15.56$18.0013.6%

      Groceries

      Item Lancaster National avg. Difference
      Ground Beef $5.65$5.843.2%
      Fried Chicken $1.45$1.578.0%
      Milk $4.49$4.673.8%
      Potatoes $5.37$4.938.8%
      Pizza $11.67$12.093.4%
      Beer $11.13$10.416.9%

      Health Care

      Item Lancaster National avg. Difference
      Optometrist $123.25$125.681.9%
      Doctor $177.40$135.7830.7%
      Dentist $118.44$113.294.6%
      Ibuprofen $10.64$10.650.2%
      Lipitor $469.00$468.600.1%

      Housing

      Item Lancaster National avg. Difference
      Home Price $127,500.00$184,700.0031.0%
      Avg. Mortgage Payment $2,026.41$2,346.6913.6%
      Apartment Rent $920.00$949.003.1%

      Transportation

      Item Lancaster National avg. Difference
      Gasoline $3.66$3.465.7%
      Tire Balancing $68.88$59.9215.0%

      Utilities

      Item Lancaster National avg. Difference
      All Electricity $169.62$193.9912.6%
      Phone $195.81$192.251.9%
      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.
      Ronks, PA1391043.7%
      Witmer, PA1591043.7%
      Brownstown borough, PA7998515.0%
      Wrightsville, PA2,045945.7%
      Columbia, PA10,369954.7%
      Lancaster, PA59,321964.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Royal Oak, MI59,2561088.0%
      Bartlett, TN59,2521010.6%
      Gardena, CA59,40115353.0%
      Vineland, NJ59,4051032.5%
      Brookline, MA59,223220119.7%
      Lancaster, PA59,321964.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.