B
2%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
2%
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 Baltimore Maryland National
Cost of living102119100
Goods & Services103106100
Groceries105106100
Health care9897100
Housing98150100
Transportation10198100
Utilities111111100

An Overview of Cost of Living in Baltimore, MD

Getting a feel for the cost of living in Baltimore is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Baltimore is 102, which is 2% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Baltimore is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 34 locals to gauge their perception of the cost of living in Baltimore. The feedback revealed that 38% of respondents found the cost of living to be reasonable, with prices on the decline, while 62% regarded it as notably expensive with prices that continue to rise.

Is Baltimore Affordable?

Is Baltimore affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Baltimore, for instance, where the median home price falls 9.4% lower than the national average, and monthly rent rates are 15.3% higher than usual. Additionally, median income levels contribute to the equation, with Baltimore flaunting a median household income of $52,164, 5.7% lower than the national norm.

What Factors can Influence the Cost of Living in Baltimore?

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Baltimore, the housing index comes in at 2% lower than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Baltimore, the standard sales tax rate starts at 6%, and the income tax rates commence at 2%.

Where is the Data From?

The cost of living in Baltimore, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Baltimore is 14% lower than the Maryland average
  • The cost of living in Baltimore is 2% higher than the national average
  • Baltimore housing is 2% lower than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Baltimore

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Compare Baltimore, MD Cost of Living

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      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$73,605$6,134$1,717$2,208
      Renters$36,380$3,032$849$1,092
      The affordability of the housing market in Baltimore, MD 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 Baltimore homeowners, the median income is $73,605. This indicates that a monthly maximum of $1,717 should be spent by homeowners on all housing related costs. Renters have a median income of $36,380. This indicates that renters would have a maximum of $849 for their rent related monthly costs.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

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

      Goods & Services

      Item Baltimore National avg. Difference
      Haircut $28.33$24.2616.8%
      Beauty Salon $58.17$45.5627.7%
      Toothpaste $3.69$3.700.3%
      Shampoo $1.44$1.2812.7%
      Movie $13.69$12.1312.9%
      Bowling $23.03$18.0027.9%

      Groceries

      Item Baltimore National avg. Difference
      Ground Beef $6.23$5.846.7%
      Fried Chicken $1.39$1.5711.4%
      Milk $4.73$4.671.2%
      Potatoes $5.46$4.9310.7%
      Pizza $13.24$12.099.5%
      Beer $10.36$10.410.5%

      Health Care

      Item Baltimore National avg. Difference
      Optometrist $114.22$125.689.1%
      Doctor $133.22$135.781.9%
      Dentist $117.22$113.293.5%
      Ibuprofen $11.10$10.654.2%
      Lipitor $401.39$468.6014.3%

      Housing

      Item Baltimore National avg. Difference
      Home Price $167,300.00$184,700.009.4%
      Avg. Mortgage Payment $1,906.29$2,346.6918.8%
      Apartment Rent $1,094.00$949.0015.3%

      Transportation

      Item Baltimore National avg. Difference
      Gasoline $3.46$3.460.1%
      Tire Balancing $62.66$59.924.6%

      Utilities

      Item Baltimore National avg. Difference
      All Electricity $223.91$193.9915.4%
      Phone $199.62$192.253.8%
      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.
      Dundalk, MD63,8261021.7%
      Lansdowne, MD8,6351022.4%
      Essex, MD39,3071055.5%
      Baltimore Highlands, MD7,8801077.1%
      Woodlawn CDP (Prince George's County), MD7,8731077.4%
      Baltimore, MD602,2741022.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Milwaukee, WI592,649936.5%
      Louisville, KY618,733973.3%
      Albuquerque, NM560,4471000.2%
      Surrey, BC560,150n/a 
      Las Vegas, NV644,5941099.3%
      Baltimore, MD602,2741022.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.