A+
2%
Overall NAT. AVG.
8%
Goods & Services NAT. AVG.
4%
Housing NAT. AVG.
Search Homes for Sale
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 Lancaster Texas National
Cost of living10292100
Goods & Services10896100
Groceries10096100
Health care10894100
Housing9683100
Transportation8992100
Utilities111104100

An Overview of Cost of Living in Lancaster, TX

Are you thinking about relocating, but curious about the potential cost of living in Lancaster? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Lancaster stands at 102, making it 2% 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.

The cost of living in Lancaster closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Lancaster can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

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

The real experts on a city are its residents. That's why we reached out to 35 locals to get their views on the cost of living in Lancaster. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 71% found it budget-friendly with decreasing prices, while 29% said it's simply not affordable as prices have continued to rise.

Is Lancaster Affordable?

Is Lancaster an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Lancaster is 16.1% lower than the national average, while the average monthly rent prices are 25.7% higher than average. The affordability of any location can also be influenced by median income levels. Lancaster has a median household income of $57,832, which is 4.5% higher than the national average.

What Factors can Influence the Cost of Living in Lancaster?

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 Lancaster, the baseline sales tax rate begins at 6.25%, and income tax rates start at 0%.

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 Lancaster, the utilities index registers at 11.4% higher than the national average.

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 Lancaster, the groceries index is 0.1% higher than the national average.

Where is the Data From?

The cost of living in Lancaster, 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.

New Real Estate Listings in Lancaster Area
Search Homes for Sale in Lancaster, TX

Cost Of Living Quick Facts

  • The cost of living in Lancaster is 10% higher than the Texas average
  • The cost of living in Lancaster is 2% higher than the national average
  • Lancaster housing is 4% lower 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 Lancaster

See all the best places to live around Lancaster

Compare Lancaster, TX Cost of Living

      vs
      How would you rate the cost of living in Lancaster?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Lancaster?
      Write a review to give others more information about this area.
      See all Lancaster poll results

      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$67,440$5,620$1,573$2,023
      Renters$40,598$3,383$947$1,218
      A good indicator of the general affordability of housing in Lancaster, TX, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Lancaster, the median monthly income is $67,440 for those who own their own homes. Under the standard rule, that income level would allow for $1,573 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $40,598, per the median income in the area. That would allow for renters to spend up to $947 on monthly rental expenses.

      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 Lancaster National avg. Difference
      Haircut $33.29$24.2637.2%
      Beauty Salon $65.85$45.5644.5%
      Toothpaste $3.57$3.703.6%
      Shampoo $1.30$1.281.3%
      Movie $14.60$12.1320.3%
      Bowling $24.53$18.0036.3%

      Groceries

      Item Lancaster National avg. Difference
      Ground Beef $5.23$5.8410.4%
      Fried Chicken $1.74$1.5710.8%
      Milk $4.65$4.670.5%
      Potatoes $4.93$4.930.0%
      Pizza $11.30$12.096.5%
      Beer $10.93$10.415.0%

      Health Care

      Item Lancaster National avg. Difference
      Optometrist $143.73$125.6814.4%
      Doctor $140.69$135.783.6%
      Dentist $130.53$113.2915.2%
      Ibuprofen $10.62$10.650.3%
      Lipitor $499.87$468.606.7%

      Housing

      Item Lancaster National avg. Difference
      Home Price $154,900.00$184,700.0016.1%
      Avg. Mortgage Payment $2,258.00$2,346.693.8%
      Apartment Rent $1,193.00$949.0025.7%

      Transportation

      Item Lancaster National avg. Difference
      Gasoline $3.09$3.4610.7%
      Tire Balancing $52.04$59.9213.2%

      Utilities

      Item Lancaster National avg. Difference
      All Electricity $219.02$193.9912.9%
      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.
      Mesquite CDP, TX6298514.7%
      Wilmer, TX4,698909.9%
      Hutchins, TX5,804928.1%
      Cockrell Hill, TX4,200936.9%
      Palmer, TX2,540963.9%
      Lancaster, TX39,2641021.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Milton, GA39,25214443.6%
      Roy, UT39,2431055.1%
      Essex, MD39,3071055.5%
      Port Moody, BC39,217n/a 
      Annapolis, MD39,32113433.9%
      Lancaster, TX39,2641021.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.