C-
6%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
31%
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 Gulf Shores Alabama National
Cost of living10688100
Goods & Services9796100
Groceries9796100
Health care10687100
Housing13172100
Transportation9391100
Utilities89102100

An Overview of Cost of Living in Gulf Shores, AL

Knowing the cost of living in Gulf Shores allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Gulf Shores stands at 106, marking it 6% higher than the national average.

The cost of living in Gulf Shores aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Gulf Shores residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Housing costs are a very significant part of the Gulf Shores cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 31.3% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Gulf Shores?

Nobody knows their city better than the people who actually live there. So, we asked 7 local residents how they would rate the cost of living in Gulf Shores and this is how they responded. 14% of people said that the cost of living was affordable, with prices decreasing, while 86% of people said that the cost of living was very expensive and prices continue to rise.

Is Gulf Shores Affordable?

Wondering if Gulf Shores 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 Gulf Shores, for example, the median home price is 37.8% higher than what folks pay nationally, and monthly rent is 16.1% higher than the usual rates. Plus, income levels matter too, with Gulf Shores boasting a median household income of $53,209, which is 3.8% lower than the national average.

What Factors can Influence the Cost of Living in Gulf Shores?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Gulf Shores, the groceries index is 3.2% lower than the national average.

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Gulf Shores comes in at 10.7% lower than the national average.

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Gulf Shores, the baseline sales tax rate begins at 4%, and income tax rates start at 2%.

Where is the Data From?

The cost of living in Gulf Shores, 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.

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Cost Of Living Quick Facts

  • The cost of living in Gulf Shores is 20% higher than the Alabama average
  • The cost of living in Gulf Shores is 6% higher than the national average
  • Gulf Shores housing is 31% higher than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Gulf Shores

See all the best places to live around Gulf Shores

Compare Gulf Shores, AL 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$70,728$5,894$1,650$2,122
      Renters$42,619$3,552$994$1,279
      A good way to judge both the affordability of the housing and the cost of living in Gulf Shores 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. Gulf Shores has a median income of about $70,728 for people who own homes. Based on that number, a maximum of $1,650 should be spent on expenses related to housing. Renters have a slightly different median income, which is $42,619. Based on this average, renters should spend no more than $994 on all rental costs if they want to maintain a non-impoverished standard of living.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Gulf Shores National avg. Difference
      Haircut $24.75$24.262.0%
      Beauty Salon $45.72$45.560.4%
      Toothpaste $3.59$3.703.0%
      Shampoo $1.17$1.288.4%
      Movie $10.62$12.1312.4%
      Bowling $17.33$18.003.7%

      Groceries

      Item Gulf Shores National avg. Difference
      Ground Beef $5.76$5.841.4%
      Fried Chicken $1.74$1.5710.7%
      Milk $4.55$4.672.5%
      Potatoes $5.16$4.934.6%
      Pizza $11.24$12.097.0%
      Beer $9.16$10.4112.0%

      Health Care

      Item Gulf Shores National avg. Difference
      Optometrist $122.28$125.682.7%
      Doctor $128.94$135.785.0%
      Dentist $138.76$113.2922.5%
      Ibuprofen $10.07$10.655.4%
      Lipitor $491.22$468.604.8%

      Housing

      Item Gulf Shores National avg. Difference
      Home Price $254,500.00$184,700.0037.8%
      Avg. Mortgage Payment $1,663.88$2,346.6929.1%
      Apartment Rent $1,102.00$949.0016.1%

      Transportation

      Item Gulf Shores National avg. Difference
      Gasoline $3.08$3.4611.0%
      Tire Balancing $60.67$59.921.2%

      Utilities

      Item Gulf Shores National avg. Difference
      All Electricity $162.85$193.9916.1%
      Phone $187.62$192.252.4%
      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.
      Elberta, AL1,9589010.5%
      Perdido Beach, AL440928.5%
      Bon Secour, AL2,010955.4%
      Summerdale, AL1,429954.6%
      Foley, AL19,337963.5%
      Gulf Shores, AL12,5501066.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Vinings, GA12,54613838.0%
      Georgetown, GA12,545990.6%
      Leeds, AL12,555964.4%
      Bedford, OH12,5558614.1%
      Middleburg, FL12,544946.4%
      Gulf Shores, AL12,5501066.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.