B-
6%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
27%
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 New Orleans Louisiana National
Cost of living10691100
Goods & Services10396100
Groceries9695100
Health care11499100
Housing12781100
Transportation9296100
Utilities7884100

An Overview of Cost of Living in New Orleans, LA

Are you thinking about relocating, but curious about the potential cost of living in New Orleans? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in New Orleans stands at 106, making it 6% 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 New Orleans aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. New Orleans residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Housing costs are a very significant part of the New Orleans 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 27.2% 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 New Orleans?

The most insightful perspective on a city comes from its residents. We recently surveyed 19 locals to gauge their perception of the cost of living in New Orleans. The feedback revealed that 16% of respondents found the cost of living to be reasonable, with prices on the decline, while 84% regarded it as notably expensive with prices that continue to rise.

Is New Orleans Affordable?

Is New Orleans affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take New Orleans, for instance, where the median home price falls 35.4% higher than the national average, and monthly rent rates are 8% higher than usual. Additionally, median income levels contribute to the equation, with New Orleans flaunting a median household income of $43,258, 21.8% lower than the national norm.

What Factors can Influence the Cost of Living in New Orleans?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In New Orleans, the transportation index is 8.1% lower than the national average.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In New Orleans, healthcare costs are 13.6% higher than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In New Orleans, the standard sales tax rate starts at 4.45%, and the income tax rates commence at 1.85%.

Where is the Data From?

The cost of living in New Orleans, 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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Cost Of Living Quick Facts

  • The cost of living in New Orleans is 17% higher than the Louisiana average
  • The cost of living in New Orleans is 6% higher than the national average
  • New Orleans housing is 27% higher than the national average
  • Louisiana general sales tax is 13% lower than the national average
  • Louisiana state income tax is 29% lower than the national average

Most Affordable Places to Live in and Around New Orleans

See all the best places to live around New Orleans

Compare New Orleans, LA 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$66,522$5,544$1,552$1,996
      Renters$27,017$2,251$630$811
      The affordability of the housing market in New Orleans, LA as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among New Orleans homeowners, the median income is $66,522. This indicates that a monthly maximum of $1,552 should be spent by homeowners on all housing related costs. Renters have a median income of $27,017. This indicates that renters would have a maximum of $630 for their rent related monthly costs.

      Louisiana Sales Tax

      State General Sales Tax With Max Surtax
      Louisiana 4.45% 11.45%

      Louisiana Income Tax

      State Income Tax (Low) Income Tax (High)
      Louisiana 1.85% 4.25%

      Goods & Services

      Item New Orleans National avg. Difference
      Haircut $21.67$24.2610.7%
      Beauty Salon $43.17$45.565.3%
      Toothpaste $3.57$3.703.6%
      Shampoo $1.22$1.284.5%
      Movie $13.30$12.139.6%
      Bowling $12.33$18.0031.5%

      Groceries

      Item New Orleans National avg. Difference
      Ground Beef $6.15$5.845.3%
      Fried Chicken $1.39$1.5711.6%
      Milk $4.55$4.672.5%
      Potatoes $5.31$4.937.5%
      Pizza $12.61$12.094.3%
      Beer $10.23$10.411.7%

      Health Care

      Item New Orleans National avg. Difference
      Optometrist $128.17$125.682.0%
      Doctor $127.78$135.785.9%
      Dentist $129.44$113.2914.3%
      Ibuprofen $10.46$10.651.8%
      Lipitor $482.03$468.602.9%

      Housing

      Item New Orleans National avg. Difference
      Home Price $250,000.00$184,700.0035.4%
      Avg. Mortgage Payment $1,882.94$2,346.6919.8%
      Apartment Rent $1,025.00$949.008.0%

      Transportation

      Item New Orleans National avg. Difference
      Gasoline $3.14$3.469.2%
      Tire Balancing $68.00$59.9213.5%

      Utilities

      Item New Orleans National avg. Difference
      All Electricity $149.86$193.9922.8%
      Phone $186.90$192.252.8%
      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.
      Pleasure Bend, LA3008416.1%
      Bridge City, LA6,4098811.6%
      Avondale, LA4,8899010.3%
      Westwego, LA8,411909.7%
      St. Rose, LA6,770918.6%
      New Orleans, LA391,2491066.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Wichita, KS390,566927.9%
      Tampa, FL395,9121077.5%
      Arlington, TX397,2691054.7%
      Cleveland, OH383,3318317.4%
      Tulsa, OK402,4419010.2%
      New Orleans, LA391,2491066.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.