F
58%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
173%
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 Alexandria Virginia National
Cost of living158109100
Goods & Services110100100
Groceries113101100
Health care10999100
Housing273130100
Transportation11195100
Utilities101104100

An Overview of Cost of Living in Alexandria, VA

Knowing the cost of living in Alexandria 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 Alexandria stands at 158, marking it 58% higher than the national average.

The cost of living in Alexandria is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Alexandria falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs significantly influence the Alexandria cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 173.1%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Alexandria goods and services are 10.2% more expensive than the national average, leaving you with less money at the end of the month.

The substantial and relentless rise in grocery prices definitely warrants some attention. Over the past two years, grocery expenses have escalated by more than 10%. Having said that, the situation in Alexandria is even less favorable, with grocery prices here being 12.6% higher than the national average.

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

Nobody knows their city better than the people who actually live there. So, we asked 26 local residents how they would rate the cost of living in Alexandria and this is how they responded. 27% of people said that the cost of living was affordable, with prices decreasing, while 73% of people said that the cost of living was very expensive and prices continue to rise.

Is Alexandria Affordable?

Is Alexandria 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 Alexandria, the median home price is 210.1% higher than what most folks pay across the country, and monthly rent prices are 86.9% higher than the usual rates. Income levels in Alexandria come in at $102,227, which is 84.8% higher than the national average.

What Factors can Influence the Cost of Living in Alexandria?

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.

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Alexandria, the utilities index stands at 0.8% higher than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Alexandria starts at 5.3% and the income tax rates start at 2%.

Where is the Data From?

The Alexandria 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Alexandria is 45% higher than the Virginia average
  • The cost of living in Alexandria is 58% higher than the national average
  • Alexandria housing is 173% higher than the national average
  • Virginia general sales tax is 4% higher than the national average
  • Virginia state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Alexandria

See all the best places to live around Alexandria

Compare Alexandria, VA 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$157,578$13,132$3,677$4,728
      Renters$77,552$6,463$1,809$2,327
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Alexandria, VA, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Alexandria homeowners, is $157,578. This would allow for a maximum of $3,677 per month to be spent on housing costs. For renters, the median monthly income is $77,552 which would result in a maximum of $1,809 to be spent on rental costs.

      Virginia Sales Tax

      State General Sales Tax With Max Surtax
      Virginia 5.3% 6%

      Virginia Income Tax

      State Income Tax (Low) Income Tax (High)
      Virginia 2% 5.75%

      Goods & Services

      Item Alexandria National avg. Difference
      Haircut $25.51$24.265.1%
      Beauty Salon $47.63$45.564.5%
      Toothpaste $3.62$3.702.1%
      Shampoo $1.34$1.284.4%
      Movie $13.08$12.137.8%
      Bowling $24.34$18.0035.2%

      Groceries

      Item Alexandria National avg. Difference
      Ground Beef $6.08$5.844.1%
      Fried Chicken $1.41$1.5710.6%
      Milk $4.68$4.670.2%
      Potatoes $5.30$4.937.3%
      Pizza $12.49$12.093.4%
      Beer $10.83$10.414.0%

      Health Care

      Item Alexandria National avg. Difference
      Optometrist $120.12$125.684.4%
      Doctor $135.82$135.780.0%
      Dentist $98.77$113.2912.8%
      Ibuprofen $10.80$10.651.4%
      Lipitor $485.49$468.603.6%

      Housing

      Item Alexandria National avg. Difference
      Home Price $572,700.00$184,700.00210.1%
      Avg. Mortgage Payment $1,923.85$2,346.6918.0%
      Apartment Rent $1,774.00$949.0086.9%

      Transportation

      Item Alexandria National avg. Difference
      Gasoline $3.34$3.463.6%
      Tire Balancing $64.70$59.928.0%

      Utilities

      Item Alexandria National avg. Difference
      All Electricity $213.29$193.999.9%
      Phone $184.83$192.253.9%
      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.
      Cedarville, MD5771099.3%
      Rose Hill CDP (Lee County), VA708927.8%
      Potomac Heights, MD1,247936.5%
      Woodlawn CDP (Carroll County), VA2,247945.9%
      Wakefield town, VA810954.6%
      Alexandria, VA158,30915858.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Hayward, CA158,81717373.0%
      Lancaster, CA157,69712524.9%
      Barrie, ON159,618n/a 
      Coquitlam, BC159,980n/a 
      Abbotsford, BC160,174n/a 
      Alexandria, VA158,30915858.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.