F
36%
Overall NAT. AVG.
17%
Goods & Services NAT. AVG.
92%
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 Lake Arbor Maryland National
Cost of living136119100
Goods & Services117106100
Groceries105106100
Health care11097100
Housing192150100
Transportation10698100
Utilities111111100

An Overview of Cost of Living in Lake Arbor, MD

Understanding the cost of living in Lake Arbor 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 Lake Arbor cost of living index is 136, which is 36% 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 value affordability in your search for a new place to live, Lake Arbor may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Lake Arbor falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs make up a big chunk of the cost of living in Lake Arbor, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 91.5% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Lake Arbor goods and services are 16.6% more expensive than the national average, leaving you with less money at the end of the month.

Is Lake Arbor Affordable?

Is Lake Arbor 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 Lake Arbor, the median home price is 85.9% higher than what most folks pay across the country, and monthly rent prices are 104.7% higher than the usual rates. Income levels in Lake Arbor come in at $108,750, which is 96.6% higher than the national average.

What Factors can Influence the Cost of Living in Lake Arbor?

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Lake Arbor, the housing index stands at 91.5% higher than the national average.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Lake Arbor, the prevailing sales tax rate starts at 6%, and income tax rates kick off at 2%.

Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.

Where is the Data From?

The Lake Arbor 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Lake Arbor is 14% higher than the Maryland average
  • The cost of living in Lake Arbor is 36% higher than the national average
  • Lake Arbor housing is 92% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Lake Arbor

See all the best places to live around Lake Arbor

Compare Lake Arbor, MD 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$118,516$9,876$2,765$3,556
      Renters$97,741$8,145$2,280$2,933
      To approximate the cost of living and the housing affordability in Lake Arbor, MD, 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 Lake Arbor have a median income of $118,516. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,765 per month to avoid calamity and poverty. The renters in the city have an income of about $97,741, which would make their monthly maximum allowable rental costs $2,280.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Lake Arbor National avg. Difference
      Haircut $41.31$24.2670.3%
      Beauty Salon $73.33$45.5660.9%
      Toothpaste $3.70$3.700.0%
      Shampoo $1.63$1.2827.4%
      Movie $15.72$12.1329.6%
      Bowling $24.56$18.0036.4%

      Groceries

      Item Lake Arbor National avg. Difference
      Ground Beef $5.72$5.842.1%
      Fried Chicken $1.31$1.5716.5%
      Milk $4.83$4.673.3%
      Potatoes $5.15$4.934.5%
      Pizza $12.83$12.096.2%
      Beer $11.41$10.419.6%

      Health Care

      Item Lake Arbor National avg. Difference
      Optometrist $112.83$125.6810.2%
      Doctor $156.21$135.7815.0%
      Dentist $135.09$113.2919.2%
      Ibuprofen $12.28$10.6515.3%
      Lipitor $426.27$468.609.0%

      Housing

      Item Lake Arbor National avg. Difference
      Home Price $343,300.00$184,700.0085.9%
      Avg. Mortgage Payment $5,844.08$2,346.69149.0%
      Apartment Rent $1,943.00$949.00104.7%

      Transportation

      Item Lake Arbor National avg. Difference
      Gasoline $3.37$3.462.7%
      Tire Balancing $75.27$59.9225.6%

      Utilities

      Item Lake Arbor National avg. Difference
      All Electricity $227.70$193.9917.4%
      Phone $190.71$192.250.8%
      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.
      Rose Hill CDP (Lee County), VA708927.8%
      Belle Haven town, VA5621022.0%
      Cottage City, MD1,1501088.4%
      Silver Hill, MD5,15511414.0%
      Seat Pleasant, MD4,75311414.3%
      Lake Arbor, MD13,72013635.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Lebanon, NH13,71812323.1%
      Glenn Dale, MD13,72214242.4%
      Beacon, NY13,72312727.0%
      Waimalu, HI13,71415958.8%
      Teays Valley, WV13,7291033.4%
      Lake Arbor, MD13,72013635.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.