An Overview of Cost of Living in Modesto, CA
Are you thinking about relocating, but curious about the potential cost of living in Modesto? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Modesto stands at 124, making it 24% 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.
The cost of living in Modesto is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Modesto falls into this category, which may not be suitable for those seeking an economically favorable living environment.
Housing costs are a very significant part of the Modesto 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 53.6% 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 Modesto?
The real experts on a city are its residents. That's why we reached out to 20 locals to get their views on the cost of living in Modesto. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 35% found it budget-friendly with decreasing prices, while 65% said it's simply not affordable as prices have continued to rise.
Is Modesto Affordable?
Is Modesto an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Modesto, the median home price is 62.8% higher than what most folks pay across the country, and monthly rent prices are 32.1% higher than the usual rates. Income levels in Modesto come in at $62,182, which is 12.4% higher than the national average.
What Factors can Influence the Cost of Living in Modesto?
Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In Modesto, healthcare costs are 4.1% lower than the national average.
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.
Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Modesto, the groceries index is 3.5% higher than the national average.
Where is the Data From?
The cost of living data in Modesto 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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