Cost of Living in Philadelphia, PA

An Overview of Cost of Living in Philadelphia, PA

Understanding the cost of living in Philadelphia 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 Philadelphia cost of living index is 102, which is 2% higher 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.

The cost of living in Philadelphia is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

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

When it comes to knowing a city, its residents are the experts. We conducted a survey with 16 locals to understand their opinions on the cost of living in Philadelphia. The results indicated that 44% found it reasonably priced with decreasing prices of goods and services, while 56% viewed it as quite expensive, with increasing prices.

Is Philadelphia Affordable?

Is Philadelphia 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 Philadelphia, for instance, where the median home price falls 7.1% lower than the national average, and monthly rent rates are 14.2% higher than usual. Additionally, median income levels contribute to the equation, with Philadelphia flaunting a median household income of $49,127, 11.2% lower than the national norm.

What Factors can Influence the Cost of Living in Philadelphia?

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 Philadelphia, the transportation index is 6.7% higher than the national average.

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 Philadelphia, the prevailing sales tax rate starts at 6%, and income tax rates kick off at 3.07%.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Philadelphia, healthcare costs are 6.5% lower than the national average.

Where is the Data From?

The Philadelphia 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.