B
8%
Overall NAT. AVG.
0%
Goods & Services NAT. AVG.
26%
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 Richmond Virginia National
Cost of living108109100
Goods & Services100100100
Groceries101101100
Health care9699100
Housing126130100
Transportation10095100
Utilities105104100

An Overview of Cost of Living in Richmond, VA

Getting a feel for the cost of living in Richmond is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Richmond is 108, which is 8% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Richmond 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 Richmond can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

Housing costs make up a big chunk of the cost of living in Richmond, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 26.4% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

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

The real experts on a city are its residents. That's why we reached out to 22 locals to get their views on the cost of living in Richmond. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 55% found it budget-friendly with decreasing prices, while 45% said it's simply not affordable as prices have continued to rise.

Is Richmond Affordable?

Is Richmond affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Richmond, the median home price is 32.2% higher than the national average and monthly rent prices are 12.8% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Richmond boasting a median household income of $51,421, 7.1% lower than the national average.

What Factors can Influence the Cost of Living in Richmond?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Richmond, the groceries index is 0.5% higher than the national average.

Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, 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 farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.

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 Richmond, the housing index comes in at 26.4% higher than the national average.

Where is the Data From?

The cost of living in Richmond, 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 Richmond is 1% lower than the Virginia average
  • The cost of living in Richmond is 8% higher than the national average
  • Richmond housing is 26% higher than the national average
  • Virginia general sales tax is 4% higher than the national average
  • Virginia state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Richmond

See all the best places to live around Richmond

Compare Richmond, VA 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$79,858$6,655$1,863$2,396
      Renters$36,249$3,021$846$1,088
      To approximate the cost of living and the housing affordability in Richmond, VA, 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 Richmond have a median income of $79,858. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,863 per month to avoid calamity and poverty. The renters in the city have an income of about $36,249, which would make their monthly maximum allowable rental costs $846.

      Virginia Sales Tax

      State General Sales Tax With Max Surtax
      Virginia 5.3% 6%

      Virginia Income Tax

      State Income Tax (Low) Income Tax (High)
      Virginia 2% 5.75%

      Goods & Services

      Item Richmond National avg. Difference
      Haircut $20.00$24.2617.6%
      Beauty Salon $54.17$45.5618.9%
      Toothpaste $3.72$3.700.5%
      Shampoo $1.26$1.281.3%
      Movie $13.31$12.139.7%
      Bowling $24.17$18.0034.3%

      Groceries

      Item Richmond National avg. Difference
      Ground Beef $5.54$5.845.2%
      Fried Chicken $1.44$1.578.5%
      Milk $4.63$4.671.0%
      Potatoes $5.27$4.936.8%
      Pizza $12.72$12.095.3%
      Beer $10.64$10.412.2%

      Health Care

      Item Richmond National avg. Difference
      Optometrist $95.44$125.6824.1%
      Doctor $122.83$135.789.5%
      Dentist $109.67$113.293.2%
      Ibuprofen $10.76$10.651.0%
      Lipitor $489.65$468.604.5%

      Housing

      Item Richmond National avg. Difference
      Home Price $244,200.00$184,700.0032.2%
      Avg. Mortgage Payment $2,083.79$2,346.6911.2%
      Apartment Rent $1,070.00$949.0012.8%

      Transportation

      Item Richmond National avg. Difference
      Gasoline $3.27$3.465.5%
      Tire Balancing $60.00$59.920.1%

      Utilities

      Item Richmond National avg. Difference
      All Electricity $227.22$193.9917.1%
      Phone $185.33$192.253.6%
      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.
      Montrose, VA7,639946.2%
      Bensley, VA6,044964.0%
      Bellwood, VA7,808973.1%
      Sandston, VA6,833972.7%
      Highland Springs, VA15,000982.0%
      Richmond, VA229,2331088.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Boise, ID228,05711414.0%
      Windsor, ON230,583n/a 
      Hialeah, FL233,87611413.6%
      Fremont, CA234,829219118.7%
      Richmond, BC222,489n/a 
      Richmond, VA229,2331088.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.