D
28%
Overall NAT. AVG.
13%
Goods & Services NAT. AVG.
63%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Olympia Washington National
Cost of living128118100
Goods & Services113111100
Groceries109110100
Health care123120100
Housing163135100
Transportation128123100
Utilities9792100

An Overview of Cost of Living in Olympia, WA

Knowing the cost of living in Olympia allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Olympia stands at 128, marking it 28% higher than the national average.

The cost of living in Olympia is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Olympia falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a very significant part of the Olympia 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 63.3% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Olympia goods and services are 13.1% more expensive than the national average, leaving you with less money at the end of the month.

What Do Locals Say About the Cost of Living in Olympia?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 16 locals to understand their opinions on the cost of living in Olympia. The results indicated that 44% found it reasonably priced with decreasing prices of goods and services, while 56% viewed it as quite expensive, with increasing prices.

Is Olympia Affordable?

Wondering if Olympia 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 Olympia, for example, the median home price is 79.1% higher than what folks pay nationally, and monthly rent is 26.3% higher than the usual rates. Plus, income levels matter too, with Olympia boasting a median household income of $63,185, which is 14.2% higher than the national average.

What Factors can Influence the Cost of Living in Olympia?

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Olympia, healthcare costs are 23.4% higher than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Olympia starts at 6.5% and the income tax rates start at 0%.

Where is the Data From?

The cost of living data in Olympia displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Olympia is 8% higher than the Washington average
  • The cost of living in Olympia is 28% higher than the national average
  • Olympia housing is 63% higher than the national average
  • Washington general sales tax is 27% higher than the national average
  • Washington state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Olympia

See all the best places to live around Olympia

Compare Olympia, WA Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$95,010$7,918$2,217$2,851
      Renters$42,505$3,542$992$1,275
      A good way to judge both the affordability of the housing and the cost of living in Olympia is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Olympia has a median income of about $95,010 for people who own homes. Based on that number, a maximum of $2,217 should be spent on expenses related to housing. Renters have a slightly different median income, which is $42,505. Based on this average, renters should spend no more than $992 on all rental costs if they want to maintain a non-impoverished standard of living.

      Washington Sales Tax

      State General Sales Tax With Max Surtax
      Washington 6.5% 10.4%

      Washington Income Tax

      State Income Tax (Low) Income Tax (High)
      Washington 0% 0%

      Goods & Services

      Item Olympia National avg. Difference
      Haircut $24.33$24.260.3%
      Beauty Salon $30.83$45.5632.3%
      Toothpaste $3.47$3.706.2%
      Shampoo $1.21$1.285.5%
      Movie $10.25$12.1315.5%
      Bowling $13.08$18.0027.3%

      Groceries

      Item Olympia National avg. Difference
      Ground Beef $5.83$5.840.1%
      Fried Chicken $2.44$1.5755.1%
      Milk $4.86$4.674.1%
      Potatoes $4.15$4.9316.0%
      Pizza $14.32$12.0918.5%
      Beer $11.62$10.4111.6%

      Health Care

      Item Olympia National avg. Difference
      Optometrist $155.39$125.6823.6%
      Doctor $188.50$135.7838.8%
      Dentist $117.89$113.294.1%
      Ibuprofen $11.97$10.6512.4%
      Lipitor $517.22$468.6010.4%

      Housing

      Item Olympia National avg. Difference
      Home Price $330,800.00$184,700.0079.1%
      Avg. Mortgage Payment $2,126.92$2,346.699.4%
      Apartment Rent $1,199.00$949.0026.3%

      Transportation

      Item Olympia National avg. Difference
      Gasoline $4.37$3.4626.2%
      Tire Balancing $69.72$59.9216.4%

      Utilities

      Item Olympia National avg. Difference
      All Electricity $126.20$193.9934.9%
      Phone $189.62$192.251.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Ketron Island, WA011514.6%
      North Yelm, WA3,7381098.8%
      Shelton, WA10,4671109.6%
      Tenino, WA1,7441109.9%
      Nisqually Indian Community, WA59111514.6%
      Olympia, WA52,29012827.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Stratford, CT52,30011716.7%
      Edina, MN52,21513838.0%
      Mascouche, QC52,212n/a 
      Watsonville, CA52,39815352.9%
      Queen Creek, AZ52,16213434.3%
      Olympia, WA52,29012827.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.