D
25%
Overall NAT. AVG.
21%
Goods & Services NAT. AVG.
58%
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 Richardson Texas National
Cost of living12592100
Goods & Services12196100
Groceries9796100
Health care11094100
Housing15883100
Transportation9492100
Utilities115104100

An Overview of Cost of Living in Richardson, TX

Getting a feel for the cost of living in Richardson 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 Richardson is 125, which is 25% 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.

If you value affordability in your search for a new place to live, Richardson may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Richardson falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs are a major factor in the Richardson cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 57.9% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Richardson, these items will cost you 20.6% more than what most folks pay, making it a bit more expensive to live here.

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

Locals have the inside scoop on their city. So, we polled 15 residents in Richardson 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? 20% find it reasonable with decreasing prices, but 80% think it's quite pricey, with prices that continue to rise.

Is Richardson Affordable?

Is Richardson 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 Richardson, for instance, where the median home price falls 60% higher than the national average, and monthly rent rates are 53% higher than usual. Additionally, median income levels contribute to the equation, with Richardson flaunting a median household income of $85,350, 54.3% higher than the national norm.

What Factors can Influence the Cost of Living in Richardson?

Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.

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 Richardson, the groceries index registers 3% lower than the national average.

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from 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 crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Where is the Data From?

The cost of living in Richardson, 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.

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Cost Of Living Quick Facts

  • The cost of living in Richardson is 35% higher than the Texas average
  • The cost of living in Richardson is 25% higher than the national average
  • Richardson housing is 58% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Richardson

See all the best places to live around Richardson

Compare Richardson, TX 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$110,720$9,227$2,583$3,322
      Renters$58,431$4,869$1,363$1,753
      A good way to judge both the affordability of the housing and the cost of living in Richardson 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. Richardson has a median income of about $110,720 for people who own homes. Based on that number, a maximum of $2,583 should be spent on expenses related to housing. Renters have a slightly different median income, which is $58,431. Based on this average, renters should spend no more than $1,363 on all rental costs if they want to maintain a non-impoverished standard of living.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

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

      Goods & Services

      Item Richardson National avg. Difference
      Haircut $23.57$24.262.8%
      Beauty Salon $35.11$45.5622.9%
      Toothpaste $3.51$3.705.1%
      Shampoo $1.22$1.284.7%
      Movie $11.85$12.132.3%
      Bowling $16.96$18.005.8%

      Groceries

      Item Richardson National avg. Difference
      Ground Beef $5.44$5.846.9%
      Fried Chicken $1.32$1.5716.1%
      Milk $4.63$4.670.9%
      Potatoes $4.15$4.9316.0%
      Pizza $11.96$12.091.0%
      Beer $10.27$10.411.4%

      Health Care

      Item Richardson National avg. Difference
      Optometrist $96.63$125.6823.1%
      Doctor $131.00$135.783.5%
      Dentist $86.73$113.2923.4%
      Ibuprofen $10.40$10.652.4%
      Lipitor $484.49$468.603.4%

      Housing

      Item Richardson National avg. Difference
      Home Price $295,500.00$184,700.0060.0%
      Avg. Mortgage Payment $1,562.33$2,346.6933.4%
      Apartment Rent $1,452.00$949.0053.0%

      Transportation

      Item Richardson National avg. Difference
      Gasoline $3.47$3.460.3%
      Tire Balancing $66.47$59.9210.9%

      Utilities

      Item Richardson National avg. Difference
      All Electricity $145.64$193.9924.9%
      Phone $208.71$192.258.6%
      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.
      Bristol, TX45011111.0%
      St. Paul CDP, TX5948910.7%
      St. Paul, TX1,3778910.7%
      Mesquite CDP, TX6298514.7%
      Horseshoe Bend, TX6218713.4%
      Richardson, TX118,58312525.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Sugar Land, TX118,56312424.4%
      Evansville, IN118,4148911.1%
      Waterloo, ON118,234n/a 
      Terrebonne, QC119,135n/a 
      Cambridge, MA117,822201101.1%
      Richardson, TX118,58312525.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.