An Overview of Cost of Living in Salem, OR
Understanding the cost of living in Salem can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Salem cost of living index is 116, which is 16% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
When it comes to the cost of living in Salem, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 33.6% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.
The cost of groceries continues to rise at an alarming rate. Over the last two years, grocery prices have increased by more than 10%! Unfortunately, in Salem, the news isn't any better as grocery prices are 10.5% higher than the national average.
What Do Locals Say About the Cost of Living in Salem?
When it comes to knowing a city, its residents are the experts. We conducted a survey with 23 locals to understand their opinions on the cost of living in Salem. The results indicated that 26% found it reasonably priced with decreasing prices of goods and services, while 74% viewed it as quite expensive, with increasing prices.
Is Salem Affordable?
Is Salem 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 Salem, the median home price is 44.1% higher than what most folks pay across the country, and monthly rent prices are 9% higher than the usual rates. Income levels in Salem come in at $58,726, which is 6.2% higher than the national average.
What Factors can Influence the Cost of Living in Salem?
Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Salem comes in at 3.8% lower than the national average.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Salem, healthcare costs are 9.6% higher than the national average.
Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Salem, the transportation index is 26.3% higher than the national average.
Where is the Data From?
The Salem 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.