Cost of Living in Reading, PA

See How Much House You Can Afford. Get Pre-Approved Today

An Overview of Cost of Living in Reading, PA

Knowing the cost of living in Reading allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Reading stands at 89, marking it 11% lower than the national average.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, Reading distinguishes itself by reporting housing expenses that are 44% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of Reading can allocate more of their income to housing, enhancing their financial flexibility.

Is Reading Affordable?

Is Reading 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 Reading, the median home price is 57% lower than what most folks pay across the country, and monthly rent prices are 13.9% lower than the usual rates. Income levels in Reading come in at $35,745, which is 35.4% lower than the national average.

What Factors can Influence the Cost of Living in Reading?

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as 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 farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Reading, the utilities index registers 6.9% lower than the national average.

Where is the Data From?

The Reading cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

Most Affordable Places to Live in and Around Reading

Livability Amenities Cost of Living Crime Employment Housing Schools User Ratings

© Proximitii © OpenStreetMap contributors © OpenMapTiles Leaflet

Cities & NeighborhoodsCities onlyNeighborhoods only

See all the best places to live around Reading

Compare Reading, PA Cost of Living

vs Compare

The best places in Pennsylvania

Salary Calculator

Median Income & Debt-To-Income Ratio

The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Reading, PA, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Reading homeowners, is $49,892. This would allow for a maximum of $1,164 per month to be spent on housing costs. For renters, the median monthly income is $26,762 which would result in a maximum of $624 to be spent on rental costs.

Pennsylvania Sales Tax

Pennsylvania Income Tax

Goods & Services

Groceries

Health Care

Housing

Transportation

Utilities

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

Cities with similar population

Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.