F
64%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
185%
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 Washington District of Columbia National
Cost of living164149100
Goods & Services117117100
Groceries105105100
Health care110110100
Housing285235100
Transportation106106100
Utilities111111100

An Overview of Cost of Living in Washington, DC

Are you thinking about relocating, but curious about the potential cost of living in Washington? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Washington stands at 164, making it 64% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you're in pursuit of an economical living environment, Washington may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Washington falls within this bracket.

Housing costs are a very significant part of the Washington 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 185.1% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Goods and services make up 33% of the total cost of living index score and are a large part of your everyday expenses. These items could include things like haircuts, salons, toothpaste, shampoo, clothes, movies, bowling, gym memberships or yoga. In Washington, you can expect to pay 16.6% more than average for these items, making it a more expensive place to live.

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

Nobody knows their city better than the people who actually live there. So, we asked 19 local residents how they would rate the cost of living in Washington and this is how they responded. 5% of people said that the cost of living was affordable, with prices decreasing, while 95% of people said that the cost of living was very expensive and prices continue to rise.

Is Washington Affordable?

Is Washington affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Washington, the median home price is 234.7% higher than the national average and monthly rent prices are 69.3% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Washington boasting a median household income of $90,842, 64.2% higher than the national average.

What Factors can Influence the Cost of Living in Washington?

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Washington, the transportation index is 5.5% higher than the national average.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Washington, the housing index stands at 185.1% higher than the national average.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Washington, the groceries index is 5.4% higher than the national average.

Where is the Data From?

The Washington 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 Washington Area
Search Homes for Sale in Washington, DC

Cost Of Living Quick Facts

  • The cost of living in Washington is 10% higher than the District of Columbia average
  • The cost of living in Washington is 64% higher than the national average
  • Washington housing is 185% higher than the national average
  • District of Columbia general sales tax is 18% higher than the national average
  • District of Columbia state income tax is 77% higher than the national average

Most Affordable Places to Live in and Around Washington

See all the best places to live around Washington

Compare Washington, DC Cost of Living

      vs
      How would you rate the cost of living in Washington?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Washington?
      Write a review to give others more information about this area.
      See all Washington 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$140,459$11,705$3,277$4,214
      Renters$61,871$5,156$1,444$1,856
      The affordability of the housing market in Washington, DC as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Washington homeowners, the median income is $140,459. This indicates that a monthly maximum of $3,277 should be spent by homeowners on all housing related costs. Renters have a median income of $61,871. This indicates that renters would have a maximum of $1,444 for their rent related monthly costs.

      District of Columbia Sales Tax

      State General Sales Tax With Max Surtax
      District of Columbia 6% 5.75%

      District of Columbia Income Tax

      State Income Tax (Low) Income Tax (High)
      District of Columbia 4% 9.75%

      Goods & Services

      Item Washington National avg. Difference
      Haircut $41.31$24.2670.3%
      Beauty Salon $73.33$45.5660.9%
      Toothpaste $3.70$3.700.0%
      Shampoo $1.63$1.2827.4%
      Movie $15.72$12.1329.6%
      Bowling $24.56$18.0036.4%

      Groceries

      Item Washington National avg. Difference
      Ground Beef $5.72$5.842.1%
      Fried Chicken $1.31$1.5716.5%
      Milk $4.83$4.673.3%
      Potatoes $5.15$4.934.5%
      Pizza $12.83$12.096.2%
      Beer $11.41$10.419.6%

      Health Care

      Item Washington National avg. Difference
      Optometrist $112.83$125.6810.2%
      Doctor $156.21$135.7815.0%
      Dentist $135.09$113.2919.2%
      Ibuprofen $12.28$10.6515.3%
      Lipitor $426.27$468.609.0%

      Housing

      Item Washington National avg. Difference
      Home Price $618,100.00$184,700.00234.7%
      Avg. Mortgage Payment $5,844.08$2,346.69149.0%
      Apartment Rent $1,607.00$949.0069.3%

      Transportation

      Item Washington National avg. Difference
      Gasoline $3.37$3.462.7%
      Tire Balancing $75.27$59.9225.6%

      Utilities

      Item Washington National avg. Difference
      All Electricity $227.70$193.9917.4%
      Phone $190.71$192.250.8%
      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.
      Rose Hill CDP (Lee County), VA708927.8%
      Woodlawn CDP (Carroll County), VA2,247945.9%
      Wakefield town, VA810954.6%
      Belle Haven town, VA5621022.0%
      Cottage City, MD1,1501088.4%
      Washington, DC701,97416463.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Vancouver, BC694,440n/a 
      Boston, MA689,32616665.5%
      Denver, CO715,87813333.5%
      El Paso, TX679,8798910.6%
      Detroit, MI672,3518415.5%
      Washington, DC701,97416463.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.