Cost of Living in Springfield, TN

An Overview of Cost of Living in Springfield, TN

Knowing the cost of living in Springfield 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 Springfield stands at 93, marking it 7% lower than the national average.

Everyday expenditures like food, housing, goods and services, transportation and health care in Springfield are priced in a manner consistent with other areas. This means that residents of Springfield can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

Is Springfield Affordable?

Wondering if Springfield is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Springfield, for example, the median home price is 13.3% lower than what folks pay nationally, and monthly rent is 10.5% lower than the usual rates. Plus, income levels matter too, with Springfield boasting a median household income of $48,420, which is 12.5% lower than the national average.

What Factors can Influence the Cost of Living in Springfield?

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 Springfield, the transportation index is 8.2% 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 Springfield, the baseline sales tax rate begins at 7%, and income tax rates start at 0%.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Springfield, is 12.4% lower than the national average.

Where is the Data From?

The Springfield 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.