B-
16%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
34%
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 Salem Oregon National
Cost of living116111100
Goods & Services106105100
Groceries111109100
Health care110105100
Housing134123100
Transportation126117100
Utilities9696100

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.

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Cost Of Living Quick Facts

  • The cost of living in Salem is 4% higher than the Oregon average
  • The cost of living in Salem is 16% higher than the national average
  • Salem housing is 34% higher than the national average
  • Oregon general sales tax is 100% lower than the national average
  • Oregon state income tax is 83% higher than the national average

Most Affordable Places to Live in and Around Salem

See all the best places to live around Salem

Compare Salem, OR 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$80,622$6,719$1,881$2,419
      Renters$39,085$3,257$912$1,173
      A good indicator of the general affordability of housing in Salem, OR, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Salem, the median monthly income is $80,622 for those who own their own homes. Under the standard rule, that income level would allow for $1,881 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $39,085, per the median income in the area. That would allow for renters to spend up to $912 on monthly rental expenses.

      Oregon Sales Tax

      State General Sales Tax With Max Surtax
      Oregon 0% 0%

      Oregon Income Tax

      State Income Tax (Low) Income Tax (High)
      Oregon 4.75% 9.9%

      Goods & Services

      Item Salem National avg. Difference
      Haircut $41.22$24.2669.9%
      Beauty Salon $60.58$45.5633.0%
      Toothpaste $3.63$3.702.0%
      Shampoo $1.53$1.2819.5%
      Movie $12.98$12.136.9%
      Bowling $18.31$18.001.7%

      Groceries

      Item Salem National avg. Difference
      Ground Beef $6.17$5.845.7%
      Fried Chicken $2.03$1.5728.8%
      Milk $5.04$4.677.9%
      Potatoes $4.39$4.9311.1%
      Pizza $12.21$12.091.0%
      Beer $12.07$10.4115.9%

      Health Care

      Item Salem National avg. Difference
      Optometrist $131.94$125.685.0%
      Doctor $188.49$135.7838.8%
      Dentist $115.08$113.291.6%
      Ibuprofen $11.58$10.658.7%
      Lipitor $386.53$468.6017.5%

      Housing

      Item Salem National avg. Difference
      Home Price $266,200.00$184,700.0044.1%
      Avg. Mortgage Payment $3,332.86$2,346.6942.0%
      Apartment Rent $1,034.00$949.009.0%

      Transportation

      Item Salem National avg. Difference
      Gasoline $4.16$3.4620.3%
      Tire Balancing $84.45$59.9240.9%

      Utilities

      Item Salem National avg. Difference
      All Electricity $182.73$193.995.8%
      Phone $190.36$192.251.0%
      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.
      Eola, OR01098.6%
      West Scio, OR371033.3%
      Rickreall, OR01098.6%
      Labish Village, OR4911065.6%
      Brooks, OR6211065.9%
      Salem, OR171,80611616.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Pembroke Pines, FL171,97912121.5%
      Peoria, AZ172,10911616.5%
      Garden Grove, CA172,80015958.9%
      Sherbrooke, QC170,686n/a 
      Eugene, OR170,45711717.2%
      Salem, OR171,80611616.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.