An Overview of Cost of Living in Goodyear, AZ
Understanding the cost of living in Goodyear 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 Goodyear cost of living index is 121, which is 21% 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.
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 Goodyear 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, Goodyear falls into this category, which may not align with your goal of finding a budget-friendly living environment.
Housing costs are a major factor in the Goodyear 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 63% 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 Goodyear?
Nobody knows their city better than the people who actually live there. So, we asked 11 local residents how they would rate the cost of living in Goodyear and this is how they responded. 27% of people said that the cost of living was affordable, with prices decreasing, while 73% of people said that the cost of living was very expensive and prices continue to rise.
Is Goodyear Affordable?
Wondering if Goodyear is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Goodyear, for example, the median home price is 68.1% higher than what folks pay nationally, and monthly rent is 51.2% higher than the usual rates. Plus, income levels matter too, with Goodyear boasting a median household income of $85,217, which is 54% higher than the national average.
What Factors can Influence the Cost of Living in Goodyear?
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 Goodyear, the baseline sales tax rate begins at 5.6%, and income tax rates start at 2.55%.
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 Goodyear, the housing index comes in at 63% higher than the national average.
Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including 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 farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.
Where is the Data From?
The cost of living in Goodyear, 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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