C
3%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
2%
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 Albany New York National
Cost of living103117100
Goods & Services106108100
Groceries103102100
Health care93103100
Housing102145100
Transportation97105100
Utilities102100100

An Overview of Cost of Living in Albany, NY

Are you thinking about relocating, but curious about the potential cost of living in Albany? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Albany stands at 103, making it 3% 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.

In Albany, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Albany will resemble that of an average city, contributing to a manageable cost of living.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 14 locals to gauge their perception of the cost of living in Albany. The feedback revealed that 21% of respondents found the cost of living to be reasonable, with prices on the decline, while 79% regarded it as notably expensive with prices that continue to rise.

Is Albany Affordable?

Is Albany an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Albany, the median home price is 1.1% higher than what most folks pay across the country, and monthly rent prices are 4.5% higher than the usual rates. Income levels in Albany come in at $48,512, which is 12.3% lower than the national average.

What Factors can Influence the Cost of Living in Albany?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Albany, the general sales tax rate starts at 4%, and income tax rates begin at 4%.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Albany, is 2.2% higher than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Albany, the utilities index registers at 1.7% higher than the national average.

Where is the Data From?

The Albany 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.

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Cost Of Living Quick Facts

  • The cost of living in Albany is 12% lower than the New York average
  • The cost of living in Albany is 3% higher than the national average
  • Albany housing is 2% higher than the national average
  • New York general sales tax is 22% lower than the national average
  • New York state income tax is 54% higher than the national average

Most Affordable Places to Live in and Around Albany

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Compare Albany, NY Cost of Living

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      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$86,203$7,184$2,011$2,586
      Renters$34,650$2,888$808$1,040
      A good way to judge both the affordability of the housing and the cost of living in Albany is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Albany has a median income of about $86,203 for people who own homes. Based on that number, a maximum of $2,011 should be spent on expenses related to housing. Renters have a slightly different median income, which is $34,650. Based on this average, renters should spend no more than $808 on all rental costs if they want to maintain a non-impoverished standard of living.

      New York Sales Tax

      State General Sales Tax With Max Surtax
      New York 4% 8.875%

      New York Income Tax

      State Income Tax (Low) Income Tax (High)
      New York 4% 10.9%

      Goods & Services

      Item Albany National avg. Difference
      Haircut $28.28$24.2616.6%
      Beauty Salon $51.36$45.5612.7%
      Toothpaste $3.74$3.701.1%
      Shampoo $1.28$1.280.3%
      Movie $13.08$12.137.8%
      Bowling $15.96$18.0011.3%

      Groceries

      Item Albany National avg. Difference
      Ground Beef $6.06$5.843.7%
      Fried Chicken $1.60$1.571.5%
      Milk $4.85$4.673.9%
      Potatoes $5.09$4.933.2%
      Pizza $14.69$12.0921.5%
      Beer $10.90$10.414.7%

      Health Care

      Item Albany National avg. Difference
      Optometrist $132.47$125.685.4%
      Doctor $111.33$135.7818.0%
      Dentist $111.69$113.291.4%
      Ibuprofen $10.90$10.652.3%
      Lipitor $436.57$468.606.8%

      Housing

      Item Albany National avg. Difference
      Home Price $186,800.00$184,700.001.1%
      Avg. Mortgage Payment $2,531.65$2,346.697.9%
      Apartment Rent $992.00$949.004.5%

      Transportation

      Item Albany National avg. Difference
      Gasoline $3.55$3.462.5%
      Tire Balancing $50.33$59.9216.0%

      Utilities

      Item Albany National avg. Difference
      All Electricity $196.70$193.991.4%
      Phone $195.71$192.251.8%
      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.
      Schenectady, NY65,336946.5%
      Green Island, NY2,647954.7%
      Scotia, NY7,648972.7%
      Waterford, NY2,141972.6%
      Watervliet, NY9,976982.0%
      Albany, NY96,8601032.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Nampa, ID96,8251033.3%
      Federal Way, WA96,81213434.4%
      Bend, OR97,03213332.6%
      Erie, PA96,6168812.4%
      Lawrence, KS97,348981.8%
      Albany, NY96,8601032.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.