F
29%
Overall NAT. AVG.
21%
Goods & Services NAT. AVG.
70%
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 Allen Texas National
Cost of living12992100
Goods & Services12196100
Groceries9796100
Health care11094100
Housing17083100
Transportation9492100
Utilities115104100

An Overview of Cost of Living in Allen, TX

Understanding the cost of living in Allen can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Allen cost of living index is 129, which is 29% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you prioritize affordability when seeking a new place to live, Allen may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Allen falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in Allen, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 69.9% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Goods and services make up 33% of the total cost of living index score and are a large part of your everyday expenses. These items could include things like haircuts, salons, toothpaste, shampoo, clothes, movies, bowling, gym memberships or yoga. In Allen, you can expect to pay 20.6% more than average for these items, making it a more expensive place to live.

Is Allen Affordable?

Wondering if Allen is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Allen, for example, the median home price is 75.1% higher than what folks pay nationally, and monthly rent is 57.7% higher than the usual rates. Plus, income levels matter too, with Allen boasting a median household income of $113,719, which is 105.6% higher than the national average.

What Factors can Influence the Cost of Living in Allen?

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Allen, the utilities index is 15.1% higher than the national average.

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 Allen, the general sales tax rate starts at 6.25%, and income tax rates begin at 0%.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Allen, the groceries index is 3% lower than the national average.

Where is the Data From?

The cost of living data in Allen displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Allen is 39% higher than the Texas average
  • The cost of living in Allen is 29% higher than the national average
  • Allen housing is 70% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Allen

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Compare Allen, TX Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      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$130,536$10,878$3,046$3,916
      Renters$68,597$5,716$1,600$2,058
      To approximate the cost of living and the housing affordability in Allen, TX, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Allen have a median income of $130,536. Therefore, the amount that a consumer should spend on housing costs should be no more than $3,046 per month to avoid calamity and poverty. The renters in the city have an income of about $68,597, which would make their monthly maximum allowable rental costs $1,600.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Allen National avg. Difference
      Haircut $23.57$24.262.8%
      Beauty Salon $35.11$45.5622.9%
      Toothpaste $3.51$3.705.1%
      Shampoo $1.22$1.284.7%
      Movie $11.85$12.132.3%
      Bowling $16.96$18.005.8%

      Groceries

      Item Allen National avg. Difference
      Ground Beef $5.44$5.846.9%
      Fried Chicken $1.32$1.5716.1%
      Milk $4.63$4.670.9%
      Potatoes $4.15$4.9316.0%
      Pizza $11.96$12.091.0%
      Beer $10.27$10.411.4%

      Health Care

      Item Allen National avg. Difference
      Optometrist $96.63$125.6823.1%
      Doctor $131.00$135.783.5%
      Dentist $86.73$113.2923.4%
      Ibuprofen $10.40$10.652.4%
      Lipitor $484.49$468.603.4%

      Housing

      Item Allen National avg. Difference
      Home Price $323,500.00$184,700.0075.1%
      Avg. Mortgage Payment $1,562.33$2,346.6933.4%
      Apartment Rent $1,497.00$949.0057.7%

      Transportation

      Item Allen National avg. Difference
      Gasoline $3.47$3.460.3%
      Tire Balancing $66.47$59.9210.9%

      Utilities

      Item Allen National avg. Difference
      All Electricity $145.64$193.9924.9%
      Phone $208.71$192.258.6%
      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.
      Bristol, TX45011111.0%
      St. Paul CDP, TX5948910.7%
      St. Paul, TX1,3778910.7%
      Garland, TX238,6221098.5%
      Princeton, TX12,20811514.5%
      Allen, TX104,04012928.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      San Mateo, CA103,619247147.3%
      Green Bay, WI104,508919.0%
      Norwalk, CA104,52414949.2%
      Rialto, CA103,54912727.3%
      Wichita Falls, TX104,6578515.1%
      Allen, TX104,04012928.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.