Cost of Living in Amarillo, TX

An Overview of Cost of Living in Amarillo, TX

Understanding the cost of living in Amarillo 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 Amarillo cost of living index is 89, which is 11% lower 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.

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

The most insightful perspective on a city comes from its residents. We recently surveyed 21 locals to gauge their perception of the cost of living in Amarillo. The feedback revealed that 48% of respondents found the cost of living to be reasonable, with prices on the decline, while 52% regarded it as notably expensive with prices that continue to rise.

Is Amarillo Affordable?

Is Amarillo affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Amarillo, for instance, where the median home price falls 24.8% lower than the national average, and monthly rent rates are 7.7% lower than usual. Additionally, median income levels contribute to the equation, with Amarillo flaunting a median household income of $52,941, 4.3% lower than the national norm.

What Factors can Influence the Cost of Living in Amarillo?

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Amarillo, the standard sales tax rate starts at 6.25%, and the income tax rates commence at 0%.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Amarillo, the healthcare costs are 15.9% lower than the national average.

Where is the Data From?

The cost of living in Amarillo, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.