An Overview of Cost of Living in El Dorado, AR
Are you thinking about relocating, but curious about the potential cost of living in El Dorado? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in El Dorado stands at 79, making it 21% 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.
The cost of living in El Dorado is highly regarded for its affordability, with everyday expenses well below the national average. El Dorado is among the select few cities with a cost of living index at least 20% lower than the national average, showcasing its outstanding affordability compared to other areas.
Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, El Dorado distinguishes itself by reporting housing expenses that are 42.3% 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 El Dorado can allocate more of their income to housing, enhancing their financial flexibility.
Everyday items like clothes, personal care products and fun activities all add up to what it costs to live. The thing is, in El Dorado, these goods and services are 11.9% cheaper than what people pay on average across the country. That means you can enjoy what you need and like without going broke. With these savings, you can stash more cash in your savings or use it for other money goals, which can really boost your financial health.
Is El Dorado Affordable?
Is El Dorado 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 El Dorado, the median home price is 50.1% lower than what most folks pay across the country, and monthly rent prices are 24.1% lower than the usual rates. Income levels in El Dorado come in at $43,409, which is 21.5% lower than the national average.
What Factors can Influence the Cost of Living in El Dorado?
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 El Dorado, the prevailing sales tax rate starts at 6.5%, and income tax rates kick off at 2%.
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 El Dorado, the groceries index is 6% lower than the national average.
Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In El Dorado, the utilities index stands at 22% lower than the national average.
Where is the Data From?
The El Dorado 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.
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