An Overview of Cost of Living in Tacoma, WA
Are you thinking about relocating, but curious about the potential cost of living in Tacoma? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Tacoma stands at 128, making it 28% 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.
If you're in pursuit of an economical living environment, Tacoma may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Tacoma falls within this bracket.
Housing costs are a very significant part of the Tacoma 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 57.7% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Tacoma goods and services are 17.1% more expensive than the national average, leaving you with less money at the end of the month.
The surge in grocery costs is indeed alarming, especially when groceries make up a large portion of your monthly expenditures. Over the past two years, there has been an inflation of over 10% in grocery prices. Unfortunately, Tacoma does not fare better, with grocery expenses coming in at 13.1% higher than the national average.
What Do Locals Say About the Cost of Living in Tacoma?
Nobody knows their city better than the people who actually live there. So, we asked 19 local residents how they would rate the cost of living in Tacoma and this is how they responded. 63% of people said that the cost of living was affordable, with prices decreasing, while 37% of people said that the cost of living was very expensive and prices continue to rise.
Is Tacoma Affordable?
Is Tacoma 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 Tacoma is 68.8% higher than the national average, while the average monthly rent prices are 32% higher than average. The affordability of any location can also be influenced by median income levels. Tacoma has a median household income of $64,457, which is 16.5% higher than the national average.
What Factors can Influence the Cost of Living in Tacoma?
Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Tacoma, the housing index is 57.7% higher 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 Tacoma, the prevailing sales tax rate starts at 6.5%, and income tax rates kick off at 0%.
Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Tacoma, the groceries index is 13.1% higher than the national average.
Where is the Data From?
The Tacoma cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.
Here are the best places to live in Washington
These are the largest cities in Washington
Most Dangerous States In The US
Safest States In The US