An Overview of Cost of Living in Bismarck, ND
Understanding the cost of living in Bismarck can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Bismarck cost of living index is 105, which is 5% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
The cost of living in Bismarck closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Bismarck can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.
Housing costs are a major factor in the Bismarck cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 22.1% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.
What Do Locals Say About the Cost of Living in Bismarck?
Nobody knows their city better than the people who actually live there. So, we asked 20 local residents how they would rate the cost of living in Bismarck and this is how they responded. 75% of people said that the cost of living was affordable, with prices decreasing, while 25% of people said that the cost of living was very expensive and prices continue to rise.
Is Bismarck Affordable?
Is Bismarck 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 Bismarck, the median home price is 34.9% higher than the national average and monthly rent prices are 7.9% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Bismarck boasting a median household income of $67,629, 22.2% higher than the national average.
What Factors can Influence the Cost of Living in Bismarck?
Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Bismarck, the general sales tax rate starts at 5%, and income tax rates begin at 1.1%.
Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Bismarck, the transportation index is 0.2% lower 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 Bismarck, the groceries index is 5.9% lower than the national average.
Where is the Data From?
The Bismarck 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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