Cost of Living in Virginia
Virginia, known for being for lovers, offers a diverse landscape when it comes to the cost of living. In this guide, we’ll break down the expenses you can expect when living in the Old Dominion State, ranging from housing to taxes and more. Let’s delve into the details!
The Average Cost of Living in Virginia
Virginia’s average cost of living is just 1% higher than the national average. This places it in the middle ground, making it more affordable than some states like California, but slightly more expensive than others such as Tennessee or Florida. However, it’s important to note that costs can vary significantly across the state, ranging from 15% lower to 46% higher than the average U.S. city.
Here’s a breakdown of the cost of living categories compared to the national average:
- Housing: 109
- Utilities: 97
- Groceries: 95
- Transportation: 91
- Health Care: 101
- Miscellaneous: 100
- Total: 101
Housing Costs in Virginia
As of 2021, the average home price in Virginia was $444,305, which is approximately $46,000 higher than the national average. Monthly rent for a two-bedroom apartment was around $1,252, slightly above the national average of $1,217. These costs can vary greatly depending on the city you choose to reside in.
For instance, in Danville, you could purchase an average house for just under $274,000, while in Arlington or Alexandria, prices soar closer to $1 million.
Virginia Beach, Arlington, and Alexandria Housing Costs
In Virginia Beach, homes are relatively more affordable compared to Arlington and Alexandria. However, affordability is relative, and it’s crucial to consider how these costs align with your income. For example, in Virginia Beach, with a median yearly salary of $78,136, you’d be spending about 31% of your income on your mortgage, which is a little high.
In contrast, buying a house in Arlington or Alexandria could potentially strain your finances, with mortgage payments exceeding half of the median salary.
Managing Housing Costs in Virginia
Setting a housing budget is crucial, whether you’re renting or buying. It’s recommended to keep housing costs, including property taxes, homeowners insurance, PMI, and HOA fees, at or below 25% of your take-home pay. Opting for a 15-year, fixed-rate conventional mortgage with at least a 10% down payment (20% to avoid PMI) is advised for smart and manageable homeownership.
Utilities
Utilities like electricity, water, and natural gas in Virginia are about 3% cheaper than the national average. However, costs can vary depending on the city you choose to reside in. For instance, in Blacksburg, you could pay as little as $134 per month for all types of energy, which is $36 below the national average.
Groceries
Good news for grocery shoppers in Virginia—groceries cost about 5% less than the national average. Roanoke offers the most affordable options, around 14% below average, while Arlington and Alexandria tend to be pricier, with costs running 10–12% above average.
Transportation
Transportation is the most affordable category in Virginia, with residents spending about 9% less than the national average. In Lynchburg, you can expect to pay a staggering 20% less for transportation.
Health Care
Virginia’s health care costs range from 6% lower to 12% above the national average. Surprisingly, Arlington and Hampton Roads offer some of the more affordable health care options, while Charlottesville tops the list with costs 12% higher than average.
Taxes
Virginia employs a graduated-rate income tax, ranging from 2–5.75%. It’s worth noting that the “graduation” requirements in Virginia are lower than in other states, with anyone making over $17,000 per year paying the highest 5.75% tax rate.
Conclusion
When considering a move to Virginia, understanding the cost of living is vital. By evaluating factors such as housing, utilities, groceries, transportation, health care, and taxes, you can make an informed decision about which city aligns best with your budget and lifestyle. Whether you’re eyeing the affordability of cities like Martinsville or considering the vibrant but pricier D.C. area, Virginia offers a range of options for residents seeking their ideal living situation.