D-
21%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
53%
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 Portland Maine National
Cost of living121102100
Goods & Services109109100
Groceries102102100
Health care103103100
Housing15392100
Transportation109109100
Utilities107107100

An Overview of Cost of Living in Portland, ME

Knowing the cost of living in Portland allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Portland stands at 121, marking it 21% higher than the national average.

If you prioritize affordability when seeking a new place to live, Portland may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Portland falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a major factor in the Portland cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 52.8% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

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

The real experts on a city are its residents. That's why we reached out to 14 locals to get their views on the cost of living in Portland. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 14% found it budget-friendly with decreasing prices, while 86% said it's simply not affordable as prices have continued to rise.

Is Portland Affordable?

Is Portland 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 Portland is 63.9% higher than the national average, while the average monthly rent prices are 26.9% higher than average. The affordability of any location can also be influenced by median income levels. Portland has a median household income of $61,695, which is 11.5% higher than the national average.

What Factors can Influence the Cost of Living in Portland?

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Portland, the housing index stands at 52.8% 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 Portland, the prevailing sales tax rate starts at 5.5%, and income tax rates kick off at 5.8%.

Where is the Data From?

The Portland 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 Portland is 18% higher than the Maine average
  • The cost of living in Portland is 21% higher than the national average
  • Portland housing is 53% higher than the national average
  • Maine general sales tax is 8% higher than the national average
  • Maine state income tax is 123% higher than the national average

Most Affordable Places to Live in and Around Portland

See all the best places to live around Portland

Compare Portland, ME 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$95,608$7,967$2,231$2,869
      Renters$41,420$3,452$966$1,243
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Portland, ME, 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 Portland, homeowners have a median income of $95,608. Using that number, a maximum of $2,231 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $41,420, which means there is a maximum of $966 to be spent on the costs of renting a home or apartment.

      Maine Sales Tax

      State General Sales Tax With Max Surtax
      Maine 5.5% 5.5%

      Maine Income Tax

      State Income Tax (Low) Income Tax (High)
      Maine 5.8% 7.15%

      Goods & Services

      Item Portland National avg. Difference
      Haircut $28.67$24.2618.2%
      Beauty Salon $53.03$45.5616.4%
      Toothpaste $3.69$3.700.3%
      Shampoo $1.17$1.288.9%
      Movie $13.07$12.137.7%
      Bowling $17.76$18.001.4%

      Groceries

      Item Portland National avg. Difference
      Ground Beef $5.41$5.847.3%
      Fried Chicken $1.43$1.578.9%
      Milk $4.75$4.671.7%
      Potatoes $5.00$4.931.3%
      Pizza $11.93$12.091.3%
      Beer $10.22$10.411.9%

      Health Care

      Item Portland National avg. Difference
      Optometrist $170.67$125.6835.8%
      Doctor $146.50$135.787.9%
      Dentist $119.58$113.295.6%
      Ibuprofen $10.72$10.650.7%
      Lipitor $372.90$468.6020.4%

      Housing

      Item Portland National avg. Difference
      Home Price $302,700.00$184,700.0063.9%
      Avg. Mortgage Payment $2,456.69$2,346.694.7%
      Apartment Rent $1,204.00$949.0026.9%

      Transportation

      Item Portland National avg. Difference
      Gasoline $3.52$3.461.7%
      Tire Balancing $76.01$59.9226.8%

      Utilities

      Item Portland National avg. Difference
      All Electricity $218.65$193.9912.7%
      Phone $185.73$192.253.4%
      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.
      Little Falls, ME7451033.4%
      Standish, ME1981087.9%
      Freeport, ME1,8791088.1%
      Old Orchard Beach, ME8,9521099.2%
      Westbrook, ME18,93511312.6%
      Portland, ME66,70612120.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      West Des Moines, IA66,7241021.7%
      Redondo Beach, CA66,663212112.2%
      Yuba City, CA66,66012323.3%
      Oshkosh, WI66,753927.6%
      Kenner, LA66,759991.1%
      Portland, ME66,70612120.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.