What is the Cost of Living in North Carolina?
North Carolina Cost of Living
Are you looking to move to North Carolina and wondering if it is an expensive place to live? Let's look a little deeper into the cost of living in North Carolina, the average household income, and typical expenses.
Are you searching to move somewhere that has all four seasons, a thriving job market, a low cost of living, and many things to do? Then look no further because moving to North Carolina may be the thing for you. No matter if you are a retiree, a young professional, or have a family, this place is perfect for everyone.
Known as the ninth most populous state in the country, the healthy growth and median household income of $60,516 are some of the reasons why people relocate here for new job opportunities. There is no sign of this state slowing down, so if you are interested in a thriving community where there is so much to offer, maybe North Carolina is for you.
The natural beauty of the coastal plains, lakes, and mountains, this state offers unbelievable scenic surroundings. Besides the beauty, this state provides a booming job market as well as a low cost of living. The Triangle area has become the research and technology hub and is one of the main reasons why this place is thriving.
If you are interested in moving to North Carolina, check out the gorgeous real estate available and the pros and cons to jump-start the homebuying process. On the other hand, if you are interested in the Triangle area, check out the stunning homes in Raleigh if you want to be in the heart of it all.
Keep reading to learn more about the cost of living and typical expenses in North Carolina.
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1. Cost of Living in North Carolina
North Carolina is relatively affordable, especially for people who are moving from the northern or western part of the United States. According to the US News and World Report, North Carolina ranks #23 overall on the list of the most affordable states.
The average cost of living in North Carolina was $38,295 a year. In 2022, the median price for a family home was about $369,500. The cost of living in this state is known to be relatively affordable and is 4% lower than the national average. North Carolina is not too expensive, but on the other hand, it is not too cheap due to the thriving economy.
Housing is 15% lower than the national average, while utilities are also 2% lower. When it comes to basic necessities such as food and clothes, they both are about 1% lower than the rest of the country, so overall, North Carolina is very affordable.
So, if you are searching for a place that is very affordable while you also get to experience the thriving economy and everything it has to offer, moving to North Carolina may be for you, keep in mind that every place does vary, so make sure you check out the best places to live in North Carolina to get a better understanding of what homes are cheaper than others to find the best location for you.
2. Real Estate
Making an investment in real estate in North Carolina is one of the best things you can do. The affordable homes and the growth in the state are just some of the main reasons why people are buying homes here. North Carolina has some fantastic places to live, all with different, unique qualities.
Whether you are searching for new construction homes or homes in the triangle, you will not miss out on the endless opportunities. Statewide, the median sales price hit $302,549 in April 2023, with an annual increase of 4.4%, according to NC Realtors.
Some regions of the state have seen more price increases than others, so make sure you keep an eye out for the real estate market and trends in each area. With the statewide demand for homes makes it harder to find houses in some areas, so check out all available inventory in the locations that you are intersted in moving to, as well as check in with your agent to help you out.
However, it is essential that this state is a highly sought out area, and many people are moving here, so if you are intersted in moving to North Carolina, you should find a trustworthy real estate agent to help you jump-start the process because homes are selling quickly.
3. Income
North Carolina's economy is growing and has a thriving job market, which is one of the main reasons why people choose to settle down here. This state has one of the country's healthiest economies and a highly educated and skilled labor workforce.
The increasing tech hub attracts college students and young professionals from all over due to the growing sectors. As well as the thriving universities throughout the state, like Duke University, North Carolina State University, and University of North Carolina Chapel Hill, attract many educated professionals.
North Carolina is projected to add more than 302,000 new jobs between 2018 and 2028, reflecting an annual growth rate of 0.6%, with nearly 90% of all net new jobs being added, according to the North Carolina Department of Commerce.
The average individual median income for North Carolina, according to the United States Census Bureau, is about $30,106, while the household median income is about $56,642. The middle class in North Carolina ranges from $30,604 to $91,812 a year.
The most jobs that are in demand in this state are:
- Computer and Mathematical
- Healthcare
- Information Technology
- Food and Processing and Manufacturing
- Textiles
4. Utilities
Due to the weather change here in North Carolina, you should prepare to spend a good amount on utilities here. North Carolina has hot, humid, cold, snowy, and all-in-between kinds of weather, so you will either be using the AC frequently or dialing up the heat.
However, the utilities overall are 6% less than the national average. Keep in mind that utility costs will vary depending on where you live, the size of your house, and many other things, so there is not an exact number for how much you will spend on utilities here.
5. Healthcare
North Carolina is known for its thriving healthcare system, where there are many medical and pharmaceutical companies. Due to the highly ranked health care in this state, the health care costs here are usually higher than the national average, about 12%.
The average cost of health insurance in the state of North Carolina is about $6,352 per person, while a family of four would be about $25,408. However, keep in mind that the issue is North Carolina's government mandates on health care, which makes the cost of health care more expensive, which also increases the insurance premiums.
Every area has different costs, so these numbers will be based on where you live as well as what services, insurance, and family size. Raleigh does have the cheapest health care in North Carolina, while Lexington has the highest. So, find the best area and services that meet your needs.
The top healthcare in North Carolina are:
6. Transportation
Transportation is a cost that does have an overall impact on the cost of living somewhere that many people usually forget about. Transportation costs include things such as gasoline, oil changes, and public transportation. In North Carolina, however, you will pay about 3% less than the national average.
North Carolina currently has six types of public transportation systems such as human service transportation, community transportation, urban transit, regional transit, vanpool and carpool programs, and intercity buses.
North Carolina has a higher percentage of low-income residents who rely on public transit compared to other areas and the nation altogether. Evert area has its own transit systems, so make sure you know what area offers what if you are in need of public transportation.
On the other hand, if you choose to own your own car, keep in mind that gas prices and maintenance to vehicles will vary depending on the car, the use, and where you are located. Transportation may seem like such a small cost, but it can add up to a lot to the overall cost of living.
7. Taxes
North Carolina is one of the only 11 states with a flat income tax rate. No matter what your income is, everyone will be taxed the same percentage. In North Carolina, the state sales tax rate is about 4.7%, with a max local sales tax rate of 2.75% and an average combined state and local sales tax rate of about 7%, according to the Tax Foundation. North Carolina's tax system ranks 10th overall on the 2023 State Business Tax Climate Index.
North Carolina is not considered to be the most tax-friendly state in the country, but North Carolina has tax options which makes up for the low cost of living. Some goods, such as most non-prepared food items, food stamps, and medical supplies, are exempt from sales tax under the North Carolina law.
On the other hand, North Carolina's property tax rates are relatively low in comparison to other states, with an average effective rate of 0.7%, while the national average is about 0.99%.
FAQS
Is it expensive to live in North Carolina?
The cost of living in North Carolina is 4% lower than the national average. It is not too expensive, nor it is too cheap to live in this southern state.
What salary do you need to live comfortably in North Carolina?
While living wages do vary throughout the state depending on the city as well as the county, an income of $53,531 is needed to live comfortably in North Carolina, but it does vary.
How affordable is it in North Carolina to live?
While North Carolina is known to be a very affordable state, some parts of the overall cost of living are a little higher than the national average. The overall cost of living is 4% lower while housing is 15% lower, utilities are 2% lower, and basic necessities such as food and other things are 1% lower.
Are houses cheaper in North Carolina?
North Carolina is known for the unique places it has to offer its residents to live. The median price of a single-family home was about $369,500 in 2022, which is 2% lower than the national median price. Housing in this state is considered to be very affordable and is a primary reason why many people are relocating here.
Cost of Living in North Carolina - The Bottom Line
With the natural beauty of the coastal plains, lakes, and mountains, this state offers unbelievable scenic surroundings. Besides the beauty, this state provides a booming job market as well as a low cost of living. The Triangle area has become the research and technology hub and is one of the main reasons why this place is thriving. No matter if you are a retiree, a young professional, or have a family, this place is perfect for everyone.
The healthy growth and thriving job market are some of the reasons why people relocate here for new job opportunities. There is no sign of this state slowing down, so if you are interested in a thriving community where there is so much to offer, North Carolina is for you.
Being an affordable state makes it an exceptionally sought-after location to relocate to, so if you are considering a move to North Carolina, please do not hesitate to contact us or visit our website. Our team at Raleigh Realty is here to connect you with a local agent to help you with the home buying or selling process.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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