A+
15%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
46%
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 Anderson Indiana National
Cost of living8590100
Goods & Services9694100
Groceries9698100
Health care9696100
Housing5472100
Transportation9595100
Utilities113107100

An Overview of Cost of Living in Anderson, IN

The cost of living in Anderson affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Anderson is 85, which is 15% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

Housing expenses can absorb a substantial portion of your net income, sometimes exceeding 30%. Thankfully, Anderson stands out by reporting housing costs that are 45.5% lower than the national average. This signifies that both homeownership and rental expenses in this region are considerably more budget-friendly compared to the rest of the country. With such favorable housing affordability, residents of Anderson can allocate a more reasonable portion of their income to housing, allowing for greater financial flexibility.

Is Anderson Affordable?

Wondering if Anderson is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Anderson, for example, the median home price is 57.4% lower than what folks pay nationally, and monthly rent is 17.7% lower than the usual rates. Plus, income levels matter too, with Anderson boasting a median household income of $37,110, which is 32.9% lower than the national average.

What Factors can Influence the Cost of Living in Anderson?

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Anderson, the prevailing sales tax rate starts at 7%, and income tax rates kick off at 3.23%.

Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Anderson, the housing index is 45.5% lower than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Where is the Data From?

The Anderson 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.

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Cost Of Living Quick Facts

  • The cost of living in Anderson is 5% lower than the Indiana average
  • The cost of living in Anderson is 15% lower than the national average
  • Anderson housing is 46% lower than the national average
  • Indiana general sales tax is 37% higher than the national average
  • Indiana state income tax is 43% higher than the national average

Most Affordable Places to Live in and Around Anderson

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Compare Anderson, IN 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$50,400$4,200$1,176$1,512
      Renters$24,745$2,062$577$742
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Anderson, IN, 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 Anderson homeowners, is $50,400. This would allow for a maximum of $1,176 per month to be spent on housing costs. For renters, the median monthly income is $24,745 which would result in a maximum of $577 to be spent on rental costs.

      Indiana Sales Tax

      State General Sales Tax With Max Surtax
      Indiana 7% 7%

      Indiana Income Tax

      State Income Tax (Low) Income Tax (High)
      Indiana 3.23% 3.23%

      Goods & Services

      Item Anderson National avg. Difference
      Haircut $16.50$24.2632.0%
      Beauty Salon $30.94$45.5632.1%
      Toothpaste $3.69$3.700.4%
      Shampoo $1.30$1.281.1%
      Movie $11.69$12.133.6%
      Bowling $11.24$18.0037.6%

      Groceries

      Item Anderson National avg. Difference
      Ground Beef $5.74$5.841.8%
      Fried Chicken $1.39$1.5711.7%
      Milk $4.59$4.671.8%
      Potatoes $4.88$4.931.0%
      Pizza $12.18$12.090.8%
      Beer $9.64$10.417.4%

      Health Care

      Item Anderson National avg. Difference
      Optometrist $138.77$125.6810.4%
      Doctor $101.43$135.7825.3%
      Dentist $122.83$113.298.4%
      Ibuprofen $10.19$10.654.3%
      Lipitor $475.45$468.601.5%

      Housing

      Item Anderson National avg. Difference
      Home Price $78,600.00$184,700.0057.4%
      Avg. Mortgage Payment $1,324.56$2,346.6943.6%
      Apartment Rent $781.00$949.0017.7%

      Transportation

      Item Anderson National avg. Difference
      Gasoline $3.51$3.461.4%
      Tire Balancing $47.59$59.9220.6%

      Utilities

      Item Anderson National avg. Difference
      All Electricity $236.28$193.9921.8%
      Phone $189.86$192.251.2%
      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.
      Cadiz, IN2428218.2%
      Orestes, IN5088217.9%
      Greensboro, IN1658317.4%
      Elwood, IN8,4358019.8%
      Middletown, IN2,4728316.7%
      Anderson, IN54,4768515.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Westchester, FL54,47012625.5%
      Albany, OR54,44211010.0%
      Burlington, NC54,5348911.0%
      Yucaipa, CA54,35812828.2%
      Decatur, AL54,3448811.9%
      Anderson, IN54,4768515.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.