A+
4%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
5%
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 Odessa Texas National
Cost of living9692100
Goods & Services9796100
Groceries9796100
Health care9494100
Housing9583100
Transportation9492100
Utilities99104100

An Overview of Cost of Living in Odessa, TX

The cost of living in Odessa affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Odessa is 96, which is 4% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

The cost of living in Odessa closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Odessa can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

What Do Locals Say About the Cost of Living in Odessa?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 11 locals to understand their opinions on the cost of living in Odessa. The results indicated that 18% found it reasonably priced with decreasing prices of goods and services, while 82% viewed it as quite expensive, with increasing prices.

Is Odessa Affordable?

Wondering if Odessa 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 Odessa, for example, the median home price is 13.5% lower than what folks pay nationally, and monthly rent is 16.3% higher than the usual rates. Plus, income levels matter too, with Odessa boasting a median household income of $63,829, which is 15.4% higher than the national average.

What Factors can Influence the Cost of Living in Odessa?

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.

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 Odessa, the transportation index is 5.6% lower than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Odessa, the prevailing sales tax rate starts at 6.25%, and income tax rates kick off at 0%.

Where is the Data From?

The cost of living data in Odessa 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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Cost Of Living Quick Facts

  • The cost of living in Odessa is 4% higher than the Texas average
  • The cost of living in Odessa is 4% lower than the national average
  • Odessa housing is 5% lower than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Odessa

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Compare Odessa, TX 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$80,273$6,689$1,873$2,408
      Renters$45,616$3,801$1,064$1,369
      To approximate the cost of living and the housing affordability in Odessa, TX, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Odessa have a median income of $80,273. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,873 per month to avoid calamity and poverty. The renters in the city have an income of about $45,616, which would make their monthly maximum allowable rental costs $1,064.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Odessa National avg. Difference
      Haircut $27.73$24.2614.3%
      Beauty Salon $70.27$45.5654.2%
      Toothpaste $3.61$3.702.5%
      Shampoo $1.15$1.2810.2%
      Movie $11.70$12.133.6%
      Bowling $17.73$18.001.5%

      Groceries

      Item Odessa National avg. Difference
      Ground Beef $5.50$5.845.8%
      Fried Chicken $1.67$1.576.0%
      Milk $4.58$4.672.0%
      Potatoes $4.86$4.931.5%
      Pizza $11.64$12.093.7%
      Beer $10.47$10.410.6%

      Health Care

      Item Odessa National avg. Difference
      Optometrist $134.65$125.687.1%
      Doctor $146.52$135.787.9%
      Dentist $122.61$113.298.2%
      Ibuprofen $10.35$10.652.8%
      Lipitor $466.56$468.600.4%

      Housing

      Item Odessa National avg. Difference
      Home Price $159,700.00$184,700.0013.5%
      Avg. Mortgage Payment $1,699.62$2,346.6927.6%
      Apartment Rent $1,104.00$949.0016.3%

      Transportation

      Item Odessa National avg. Difference
      Gasoline $3.06$3.4611.5%
      Tire Balancing $61.55$59.922.7%

      Utilities

      Item Odessa National avg. Difference
      All Electricity $137.32$193.9929.2%
      Phone $207.58$192.258.0%
      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.
      West Odessa, TX26,1178812.4%
      Goldsmith, TX124909.9%
      Gardendale, TX1,3891088.1%
      Odessa, TX122,630963.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Columbia, MO122,659982.2%
      Hartford, CT122,5491043.9%
      Victorville, CA122,95811716.5%
      Berkeley, CA123,065221121.2%
      Wilmington, NC122,1621098.7%
      Odessa, TX122,630963.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.