An Overview of Cost of Living in Franklin, TN
Knowing the cost of living in Franklin 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 Franklin stands at 132, marking it 32% higher than the national average.
If you prioritize affordability when seeking a new place to live, Franklin may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Franklin falls into this category, which may not align with your preferences for a budget-friendly living environment.
Housing costs significantly influence the Franklin cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 115.4%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.
What Do Locals Say About the Cost of Living in Franklin?
The most insightful perspective on a city comes from its residents. We recently surveyed 11 locals to gauge their perception of the cost of living in Franklin. The feedback revealed that 55% of respondents found the cost of living to be reasonable, with prices on the decline, while 45% regarded it as notably expensive with prices that continue to rise.
Is Franklin Affordable?
Is Franklin 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 Franklin, the median home price is 137.6% higher than the national average and monthly rent prices are 63.6% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Franklin boasting a median household income of $100,169, 81.1% higher than the national average.
What Factors can Influence the Cost of Living in Franklin?
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 Franklin, the baseline sales tax rate begins at 7%, and income tax rates start at 0%.
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.
Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Franklin, the transportation index is 8.2% lower than the national average.
Where is the Data From?
The cost of living data in Franklin 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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