An Overview of Cost of Living in Memphis, TN
Are you thinking about relocating, but curious about the potential cost of living in Memphis? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Memphis stands at 86, making it 14% 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.
What Do Locals Say About the Cost of Living in Memphis?
The most insightful perspective on a city comes from its residents. We recently surveyed 50 locals to gauge their perception of the cost of living in Memphis. The feedback revealed that 36% of respondents found the cost of living to be reasonable, with prices on the decline, while 64% regarded it as notably expensive with prices that continue to rise.
Is Memphis Affordable?
Is Memphis affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Memphis, for instance, where the median home price falls 42% lower than the national average, and monthly rent rates are 3.6% lower than usual. Additionally, median income levels contribute to the equation, with Memphis flaunting a median household income of $41,864, 24.3% lower than the national norm.
What Factors can Influence the Cost of Living in Memphis?
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 Memphis, the prevailing sales tax rate starts at 7%, and income tax rates kick off at 0%.
Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.
Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.
Where is the Data From?
The Memphis 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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