An Overview of Cost of Living in Des Moines, IA
Are you thinking about relocating, but curious about the potential cost of living in Des Moines? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Des Moines stands at 90, making it 10% 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.
In Des Moines, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Des Moines will resemble that of an average city, contributing to a manageable cost of living.
Is Des Moines Affordable?
Wondering if Des Moines 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 Des Moines, for example, the median home price is 23.5% lower than what folks pay nationally, and monthly rent is 7.2% lower than the usual rates. Plus, income levels matter too, with Des Moines boasting a median household income of $54,843, which is 0.9% lower than the national average.
What Factors can Influence the Cost of Living in Des Moines?
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: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Des Moines, the standard sales tax rate starts at 6%, and the income tax rates commence at 0.33%.
Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Des Moines, the utilities index registers 13.4% lower than the national average.
Where is the Data From?
The cost of living in Des Moines, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.