A+
13%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
40%
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 Alexander City Alabama National
Cost of living8788100
Goods & Services9896100
Groceries9796100
Health care9287100
Housing6072100
Transportation9291100
Utilities110102100

An Overview of Cost of Living in Alexander City, AL

Knowing the cost of living in Alexander City allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Alexander City stands at 87, marking it 13% lower than the national average.

Is Alexander City Affordable?

Is Alexander City an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Alexander City is 40.9% lower than the national average, while the average monthly rent prices are 36.7% lower than average. The affordability of any location can also be influenced by median income levels. Alexander City has a median household income of $41,004, which is 25.9% lower than the national average.

What Factors can Influence the Cost of Living in Alexander City?

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Alexander City, the utilities index registers at 10.3% higher than the national average.

Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including 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 farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.

Where is the Data From?

The cost of living data in Alexander City displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Alexander City is 2% lower than the Alabama average
  • The cost of living in Alexander City is 13% lower than the national average
  • Alexander City housing is 40% lower than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Alexander City

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Compare Alexander City, AL 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$57,092$4,758$1,332$1,713
      Renters$22,554$1,880$526$677
      To approximate the cost of living and the housing affordability in Alexander City, AL, 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 Alexander City have a median income of $57,092. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,332 per month to avoid calamity and poverty. The renters in the city have an income of about $22,554, which would make their monthly maximum allowable rental costs $526.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Alexander City National avg. Difference
      Haircut $21.67$24.2610.7%
      Beauty Salon $43.83$45.563.8%
      Toothpaste $3.73$3.700.7%
      Shampoo $1.15$1.289.9%
      Movie $13.16$12.138.5%
      Bowling $20.00$18.0011.1%

      Groceries

      Item Alexander City National avg. Difference
      Ground Beef $5.64$5.843.4%
      Fried Chicken $1.67$1.576.2%
      Milk $4.51$4.673.5%
      Potatoes $5.41$4.939.6%
      Pizza $12.32$12.092.0%
      Beer $10.54$10.411.2%

      Health Care

      Item Alexander City National avg. Difference
      Optometrist $77.08$125.6838.7%
      Doctor $100.56$135.7825.9%
      Dentist $118.89$113.294.9%
      Ibuprofen $10.18$10.654.4%
      Lipitor $501.36$468.607.0%

      Housing

      Item Alexander City National avg. Difference
      Home Price $109,100.00$184,700.0040.9%
      Avg. Mortgage Payment $1,756.90$2,346.6925.1%
      Apartment Rent $601.00$949.0036.7%

      Transportation

      Item Alexander City National avg. Difference
      Gasoline $3.12$3.469.7%
      Tire Balancing $56.77$59.925.3%

      Utilities

      Item Alexander City National avg. Difference
      All Electricity $227.80$193.9917.4%
      Phone $189.16$192.251.6%
      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.
      Ray, AL466981.9%
      Hissop, AL218936.5%
      Hackneyville, AL3317821.8%
      Hollins, AL9677821.9%
      Our Town, AL5708118.5%
      Alexander City, AL14,5158713.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Spring Creek, NV14,5101099.0%
      Luling, LA14,5221033.0%
      Fraser, MI14,503955.4%
      Paradise Valley, AZ14,502286186.4%
      Thonotosassa, FL14,493973.3%
      Alexander City, AL14,5158713.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.