F
25%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
58%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Laurel Maryland National
Cost of living125119100
Goods & Services117106100
Groceries105106100
Health care11097100
Housing158150100
Transportation10698100
Utilities111111100

An Overview of Cost of Living in Laurel, MD

Are you thinking about relocating, but curious about the potential cost of living in Laurel? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Laurel stands at 125, making it 25% 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 you value affordability in your search for a new place to live, Laurel may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Laurel falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs make up a big chunk of the cost of living in Laurel, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 57.6% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Laurel goods and services are 16.6% more expensive than the national average, leaving you with less money at the end of the month.

Is Laurel Affordable?

Is Laurel 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 Laurel is 52.4% higher than the national average, while the average monthly rent prices are 69.8% higher than average. The affordability of any location can also be influenced by median income levels. Laurel has a median household income of $80,255, which is 45.1% higher than the national average.

What Factors can Influence the Cost of Living in Laurel?

Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Laurel, the transportation index stands at 5.5% higher than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Laurel, is 57.6% higher than the national average.

Where is the Data From?

The Laurel 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Laurel is 6% higher than the Maryland average
  • The cost of living in Laurel is 25% higher than the national average
  • Laurel housing is 58% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 11% lower than the national average

Most Affordable Places to Live in and Around Laurel

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Compare Laurel, MD Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$104,309$8,692$2,434$3,130
      Renters$65,034$5,420$1,517$1,951
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Laurel, MD, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Laurel, homeowners have a median income of $104,309. Using that number, a maximum of $2,434 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $65,034, which means there is a maximum of $1,517 to be spent on the costs of renting a home or apartment.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Laurel National avg. Difference
      Haircut $41.31$24.2670.3%
      Beauty Salon $73.33$45.5660.9%
      Toothpaste $3.70$3.700.0%
      Shampoo $1.63$1.2827.4%
      Movie $15.72$12.1329.6%
      Bowling $24.56$18.0036.4%

      Groceries

      Item Laurel National avg. Difference
      Ground Beef $5.72$5.842.1%
      Fried Chicken $1.31$1.5716.5%
      Milk $4.83$4.673.3%
      Potatoes $5.15$4.934.5%
      Pizza $12.83$12.096.2%
      Beer $11.41$10.419.6%

      Health Care

      Item Laurel National avg. Difference
      Optometrist $112.83$125.6810.2%
      Doctor $156.21$135.7815.0%
      Dentist $135.09$113.2919.2%
      Ibuprofen $12.28$10.6515.3%
      Lipitor $426.27$468.609.0%

      Housing

      Item Laurel National avg. Difference
      Home Price $281,500.00$184,700.0052.4%
      Avg. Mortgage Payment $5,844.08$2,346.69149.0%
      Apartment Rent $1,611.00$949.0069.8%

      Transportation

      Item Laurel National avg. Difference
      Gasoline $3.37$3.462.7%
      Tire Balancing $75.27$59.9225.6%

      Utilities

      Item Laurel National avg. Difference
      All Electricity $227.70$193.9917.4%
      Phone $190.71$192.250.8%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Baltimore, MD602,2741022.1%
      Lansdowne, MD8,6351022.4%
      Cottage City, MD1,1501088.4%
      Woodlawn CDP (Prince George's County), MD7,8731077.4%
      Brooklyn Park, MD15,1631098.7%
      Laurel, MD25,73412525.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Green, OH25,737990.5%
      Hanahan, SC25,7431098.6%
      White Bear Lake, MN25,7181076.6%
      Owatonna, MN25,716954.5%
      Beloeil, QC25,755n/a 
      Laurel, MD25,73412525.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.