An Overview of Cost of Living in Buffalo Grove, IL
Are you thinking about relocating, but curious about the potential cost of living in Buffalo Grove? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Buffalo Grove stands at 127, making it 27% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in Buffalo Grove is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Buffalo Grove falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs are a very significant part of the Buffalo Grove cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 82% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Is Buffalo Grove Affordable?
Is Buffalo Grove 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 Buffalo Grove is 83.2% higher than the national average, while the average monthly rent prices are 79.1% higher than average. The affordability of any location can also be influenced by median income levels. Buffalo Grove has a median household income of $117,921, which is 113.2% higher than the national average.
What Factors can Influence the Cost of Living in Buffalo Grove?
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 Buffalo Grove, the groceries index is 3.5% higher than the national average.
Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as 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 farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.
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 Buffalo Grove, the standard sales tax rate starts at 6.25%, and the income tax rates commence at 4.95%.
Where is the Data From?
The cost of living data in Buffalo Grove 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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