C+
14%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
46%
Housing NAT. AVG.
Search Homes for Sale
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 Orem Utah National
Cost of living114104100
Goods & Services102102100
Groceries9899100
Health care9691100
Housing146114100
Transportation107105100
Utilities9195100

An Overview of Cost of Living in Orem, UT

Getting a feel for the cost of living in Orem is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Orem is 114, which is 14% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

Housing costs are a very significant part of the Orem 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 45.9% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Orem Affordable?

Is Orem 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 Orem, the median home price is 60.7% higher than what most folks pay across the country, and monthly rent prices are 11.4% higher than the usual rates. Income levels in Orem come in at $65,622, which is 18.6% higher than the national average.

What Factors can Influence the Cost of Living in Orem?

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Orem, the housing index comes in at 45.9% higher 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 Orem, healthcare costs are 3.9% lower than the national average.

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 Orem starts at 6.1% and the income tax rates start at 4.85%.

Where is the Data From?

The Orem 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.

New Real Estate Listings in Orem Area
Search Homes for Sale in Orem, UT

Cost Of Living Quick Facts

  • The cost of living in Orem is 9% higher than the Utah average
  • The cost of living in Orem is 14% higher than the national average
  • Orem housing is 46% higher than the national average
  • Utah general sales tax is 20% higher than the national average
  • Utah state income tax is 115% higher than the national average

Most Affordable Places to Live in and Around Orem

See all the best places to live around Orem

Compare Orem, UT Cost of Living

      vs
      How would you rate the cost of living in Orem?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Orem?
      Write a review to give others more information about this area.
      See all Orem poll results

      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$84,132$7,011$1,963$2,524
      Renters$46,281$3,857$1,080$1,389
      To approximate the cost of living and the housing affordability in Orem, UT, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Orem have a median income of $84,132. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,963 per month to avoid calamity and poverty. The renters in the city have an income of about $46,281, which would make their monthly maximum allowable rental costs $1,080.

      Utah Sales Tax

      State General Sales Tax With Max Surtax
      Utah 6.1% 8.35%

      Utah Income Tax

      State Income Tax (Low) Income Tax (High)
      Utah 4.85% 4.85%

      Goods & Services

      Item Orem National avg. Difference
      Haircut $20.85$24.2614.1%
      Beauty Salon $48.42$45.566.3%
      Toothpaste $3.58$3.703.4%
      Shampoo $1.18$1.287.6%
      Movie $12.31$12.131.5%
      Bowling $20.93$18.0016.3%

      Groceries

      Item Orem National avg. Difference
      Ground Beef $5.79$5.840.9%
      Fried Chicken $1.39$1.5711.9%
      Milk $4.62$4.671.2%
      Potatoes $4.61$4.936.6%
      Pizza $12.02$12.090.5%
      Beer $10.69$10.412.6%

      Health Care

      Item Orem National avg. Difference
      Optometrist $119.08$125.685.3%
      Doctor $128.07$135.785.7%
      Dentist $99.10$113.2912.5%
      Ibuprofen $10.51$10.651.3%
      Lipitor $546.75$468.6016.7%

      Housing

      Item Orem National avg. Difference
      Home Price $296,900.00$184,700.0060.7%
      Avg. Mortgage Payment $2,790.73$2,346.6918.9%
      Apartment Rent $1,057.00$949.0011.4%

      Transportation

      Item Orem National avg. Difference
      Gasoline $3.58$3.463.4%
      Tire Balancing $69.63$59.9216.2%

      Utilities

      Item Orem National avg. Difference
      All Electricity $165.50$193.9914.7%
      Phone $192.69$192.250.2%
      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.
      Provo, UT116,88611212.4%
      Springville, UT33,25111413.9%
      Spanish Fork, UT40,06911515.0%
      Pleasant Grove, UT38,47411818.4%
      American Fork, UT31,63611918.5%
      Orem, UT97,88311413.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Rio Rancho, NM97,9761022.4%
      Edinburg, TX97,7348613.8%
      Yuma, AZ97,428973.2%
      Lawrence, KS97,348981.8%
      Beaverton, OR98,56713535.0%
      Orem, UT97,88311413.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.