A Comprehensive Guide on the Living Costs of Philadelphia
Philadelphia, Pennsylvania, is one of the largest cities in the United States, with a population of over 1.5 million people. It is also one of the most historic cities in the country, with a rich culture and a vibrant economy. However, like any major city, the cost of living in Philadelphia can be high, and it is important to understand the real cost of living before deciding to move there.
1. Housing Costs
Housing in Philadelphia can be expensive, with median home values increasing significantly from 2021 to 2022. The city's architecture reflects its rich history, featuring townhomes, condos, apartments, and single-family homes, often with brick exteriors and shuttered windows. Row houses are particularly popular in downtown Philadelphia. While the city maintains its historic charm, newer constructions with contemporary designs can also be found in various neighborhoods.
2. Transportation Costs
Approximately 25% of Philadelphia's population uses public transportation daily, with the Southeastern Pennsylvania Transportation Authority (SEPTA) serving over 4 million people across five counties. The SEPTA system is an affordable and efficient way to travel in the city. However, owning a vehicle in Philadelphia can be more costly due to gas prices, insurance, parking fees, and traffic congestion. Parking in downtown areas can also be challenging and expensive.
3. Food Costs
Food is a major expense in Philadelphia, with an average meal when eating out costing around $25-$50 per person. The cost is lower than in other large cities, but eating out is still more expensive than buying groceries and cooking at home. However, getting groceries can be a hassle due to the reliance on public transportation in the city. Use food delivery services like AmazonFresh or HelloFresh for pre-packaged meals to save money and time.
4. Utility Costs
The average cost of utilities in Philadelphia per month is around $200, in addition to rent or mortgage costs. This includes gas, electricity, water, and other potential expenses such as trash removal, WiFi, cable, recycling, sewer, and doorman/mailroom access. The average cost of electricity is $0.170 per kWh, and the average price of natural gas is $1.334 per Therm. Additional expenses may include amenities such as pools, parking garages, gyms, and rooftop access, which could be charged separately or included in the rent.
5. Taxes
The average sales tax across the US ranges from 4-7%, and Pennsylvania currently has a sales tax rate of 6%. This indicates that sales taxes in this state are relatively higher compared to other parts of the country, which can sometimes lead to an increase in the overall cost of goods. However, when relocating to another state, sales tax is not the only tax-related concern to consider. Here are some other tax facts to be aware of in Pennsylvania.
6. Average Income
A typical Philadelphia resident earns about $52,649, lower than the national average of $67,521. This indicates that people in this city generally earn less than the average American. However, factors such as age, occupation, and location can cause variations in this figure. For instance, those residing in downtown Philadelphia tend to have higher incomes.
Conclusion
Before deciding to move to Philadelphia, it is important to research the cost of living in the neighborhood you are interested in and to create a budget that considers your housing, transportation, food, utilities, and tax expenses.
Are you moving to Philadelphia? At Steven Ohm Realty, we can help you find the perfect home in this historic and vibrant city. Contact us today!
