An Overview of Cost of Living in Burlington, VT
Knowing the cost of living in Burlington 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 Burlington stands at 122, marking it 22% higher than the national average.
If you're in pursuit of an economical living environment, Burlington may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Burlington falls within this bracket.
Housing costs are a very significant part of the Burlington 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 58% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
What Do Locals Say About the Cost of Living in Burlington?
The real experts on a city are its residents. That's why we reached out to 14 locals to get their views on the cost of living in Burlington. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 43% found it budget-friendly with decreasing prices, while 57% said it's simply not affordable as prices have continued to rise.
Is Burlington Affordable?
Is Burlington 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 Burlington, the median home price is 68.3% higher than the national average and monthly rent prices are 34% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Burlington boasting a median household income of $81,342, 0% equal to the national average.
What Factors can Influence the Cost of Living in Burlington?
Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.
Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Burlington, the utilities index is 13% higher than the national average.
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Burlington, the baseline sales tax rate begins at 6%, and income tax rates start at 3.35%.
Where is the Data From?
The cost of living data in Burlington 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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