An Overview of Cost of Living in Kokomo, IN
Understanding the cost of living in Kokomo 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 Kokomo cost of living index is 83, which is 17% lower 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.
Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Kokomo distinguishes itself by reporting housing expenses that are 41.2% 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 Kokomo 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 Kokomo, these goods and services are 12% 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.
What Do Locals Say About the Cost of Living in Kokomo?
Locals have the inside scoop on their city. So, we polled 8 residents in Kokomo to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 63% find it reasonable with decreasing prices, but 38% think it's quite pricey, with prices that continue to rise.
Is Kokomo Affordable?
Is Kokomo 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 Kokomo, the median home price is 49.5% lower than what most folks pay across the country, and monthly rent prices are 21.9% lower than the usual rates. Income levels in Kokomo come in at $48,830, which is 11.7% lower than the national average.
What Factors can Influence the Cost of Living in Kokomo?
Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Kokomo, the groceries index registers 0.6% lower than the national average.
Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.
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 Kokomo, the transportation index is 8.6% lower than the national average.
Where is the Data From?
The Kokomo 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.
Here are the best places to live in Indiana
Top 10 best public schools in Kokomo
10 Best cities in Indiana for employment
See the best places to live in & around Kokomo