An Overview of Cost of Living in New Orleans, LA
Are you thinking about relocating, but curious about the potential cost of living in New Orleans? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in New Orleans stands at 106, making it 6% higher 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 New Orleans aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. New Orleans residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.
Housing costs are a very significant part of the New Orleans cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 27.2% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
What Do Locals Say About the Cost of Living in New Orleans?
The most insightful perspective on a city comes from its residents. We recently surveyed 19 locals to gauge their perception of the cost of living in New Orleans. The feedback revealed that 16% of respondents found the cost of living to be reasonable, with prices on the decline, while 84% regarded it as notably expensive with prices that continue to rise.
Is New Orleans Affordable?
Is New Orleans 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 New Orleans, for instance, where the median home price falls 35.4% higher than the national average, and monthly rent rates are 8% higher than usual. Additionally, median income levels contribute to the equation, with New Orleans flaunting a median household income of $43,258, 21.8% lower than the national norm.
What Factors can Influence the Cost of Living in New Orleans?
Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In New Orleans, the transportation index is 8.1% lower than the national average.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In New Orleans, healthcare costs are 13.6% higher than the national average.
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 New Orleans, the standard sales tax rate starts at 4.45%, and the income tax rates commence at 1.85%.
Where is the Data From?
The cost of living in New Orleans, 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.
Here are the best places to live in Louisiana
Top 10 best public schools in New Orleans
See the best places to live in & around New Orleans
Check out the 10 safest cities in Louisiana