Cost of Living in Philadelphia, PA

Homes For Sale In Philadelphia, PA

An Overview of Cost of Living in Philadelphia, PA

Are you thinking about relocating, but curious about the potential cost of living in Philadelphia? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Philadelphia stands at 104, making it 4% 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.

In Philadelphia, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Philadelphia will resemble that of an average city, contributing to a manageable cost of living.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 16 locals to gauge their perception of the cost of living in Philadelphia. The feedback revealed that 44% of respondents found the cost of living to be reasonable, with prices on the decline, while 56% regarded it as notably expensive with prices that continue to rise.

Is Philadelphia Affordable?

Is Philadelphia 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 Philadelphia is 7.4% lower than the national average, while the average monthly rent prices are 13.9% higher than average. The affordability of any location can also be influenced by median income levels. Philadelphia has a median household income of $72,881, which is 10.4% lower than the national average.

What Factors can Influence the Cost of Living in Philadelphia?

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 Philadelphia, the housing index comes in at 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 Philadelphia, healthcare costs are 4.3% higher than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, 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. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Where is the Data From?

The cost of living in Philadelphia, 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.

Most Affordable Places to Live in and Around Philadelphia

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Median Income & Debt-To-Income Ratio

A good indicator of the general affordability of housing in Philadelphia, PA, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Philadelphia, the median monthly income is $91,478 for those who own their own homes. Under the standard rule, that income level would allow for $2,134 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $55,127, per the median income in the area. That would allow for renters to spend up to $1,286 on monthly rental expenses.

Pennsylvania Sales Tax

Pennsylvania Income Tax

Goods & Services

Groceries

Health Care

Housing

Transportation

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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.

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Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.