Cost of Living in Lima, OH

An Overview of Cost of Living in Lima, OH

The cost of living in Lima affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Lima is 89, which is 11% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Lima distinguishes itself by reporting housing expenses that are 52.2% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of Lima can allocate more of their income to housing, enhancing their financial flexibility.

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

Locals have the inside scoop on their city. So, we polled 14 residents in Lima to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 36% find it reasonable with decreasing prices, but 64% think it's quite pricey, with prices that continue to rise.

Is Lima Affordable?

Is Lima 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 Lima, the median home price is 62.7% lower than what most folks pay across the country, and monthly rent prices are 27.6% lower than the usual rates. Income levels in Lima come in at $34,586, which is 37.5% lower than the national average.

What Factors can Influence the Cost of Living in Lima?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Lima, the groceries index is 1.6% higher than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Lima, the general sales tax rate starts at 5.75%, and income tax rates begin at 0%.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Lima, the transportation index is 16.8% higher than the national average.

Where is the Data From?

The cost of living data in Lima displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.