A
1%
Overall NAT. AVG.
1%
Goods & Services NAT. AVG.
5%
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 Lexington-Fayette Kentucky National
Cost of living10190100
Goods & Services101101100
Groceries101101100
Health care8484100
Housing10570100
Transportation9292100
Utilities104104100

An Overview of Cost of Living in Lexington-Fayette, KY

Knowing the cost of living in Lexington-Fayette 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 Lexington-Fayette stands at 101, marking it 1% higher than the national average.

The cost of living in Lexington-Fayette 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 Lexington-Fayette 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 Lexington-Fayette?

The most insightful perspective on a city comes from its residents. We recently surveyed 10 locals to gauge their perception of the cost of living in Lexington-Fayette. The feedback revealed that 70% of respondents found the cost of living to be reasonable, with prices on the decline, while 30% regarded it as notably expensive with prices that continue to rise.

Is Lexington-Fayette Affordable?

Wondering if Lexington-Fayette 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 Lexington-Fayette, for example, the median home price is 8.8% higher than what folks pay nationally, and monthly rent is 3.1% lower than the usual rates. Plus, income levels matter too, with Lexington-Fayette boasting a median household income of $58,954, which is 6.6% higher than the national average.

What Factors can Influence the Cost of Living in Lexington-Fayette?

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Lexington-Fayette, the housing index comes in at 5.2% higher than the national average.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Lexington-Fayette, the transportation index is 8% lower than the national average.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Lexington-Fayette, the groceries index is 1.3% higher than the national average.

Where is the Data From?

The Lexington-Fayette 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. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Lexington-Fayette is 12% higher than the Kentucky average
  • The cost of living in Lexington-Fayette is 1% higher than the national average
  • Lexington-Fayette housing is 5% higher than the national average
  • Kentucky general sales tax is 18% higher than the national average
  • Kentucky state income tax is 73% higher than the national average

Most Affordable Places to Live in and Around Lexington-Fayette

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Compare Lexington-Fayette, KY 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$87,707$7,309$2,046$2,631
      Renters$37,380$3,115$872$1,122
      A good way to judge both the affordability of the housing and the cost of living in Lexington-Fayette 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. Lexington-Fayette has a median income of about $87,707 for people who own homes. Based on that number, a maximum of $2,046 should be spent on expenses related to housing. Renters have a slightly different median income, which is $37,380. Based on this average, renters should spend no more than $872 on all rental costs if they want to maintain a non-impoverished standard of living.

      Kentucky Sales Tax

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

      Kentucky Income Tax

      State Income Tax (Low) Income Tax (High)
      Kentucky 4.5% 4.5%

      Goods & Services

      Item Lexington-Fayette National avg. Difference
      Haircut $26.50$24.269.2%
      Beauty Salon $53.07$45.5616.5%
      Toothpaste $3.50$3.705.6%
      Shampoo $1.21$1.285.3%
      Movie $13.05$12.137.6%
      Bowling $21.91$18.0021.7%

      Groceries

      Item Lexington-Fayette National avg. Difference
      Ground Beef $6.07$5.844.0%
      Fried Chicken $1.40$1.5711.0%
      Milk $4.72$4.671.0%
      Potatoes $5.19$4.935.1%
      Pizza $10.35$12.0914.4%
      Beer $9.84$10.415.5%

      Health Care

      Item Lexington-Fayette National avg. Difference
      Optometrist $87.52$125.6830.4%
      Doctor $106.15$135.7821.8%
      Dentist $102.55$113.299.5%
      Ibuprofen $10.64$10.650.1%
      Lipitor $364.92$468.6022.1%

      Housing

      Item Lexington-Fayette National avg. Difference
      Home Price $200,900.00$184,700.008.8%
      Avg. Mortgage Payment $1,809.12$2,346.6922.9%
      Apartment Rent $920.00$949.003.1%

      Transportation

      Item Lexington-Fayette National avg. Difference
      Gasoline $3.11$3.4610.2%
      Tire Balancing $58.38$59.922.6%

      Utilities

      Item Lexington-Fayette National avg. Difference
      All Electricity $207.41$193.996.9%
      Phone $192.46$192.250.1%
      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.
      High Bridge, KY180919.1%
      Paris, KY9,776918.8%
      Nicholasville, KY30,549945.8%
      Wilmore, KY6,339963.9%
      Versailles, KY9,251973.4%
      Lexington-Fayette, KY322,2001011.2%

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      City Population Cost of Living Index National Avg.
      Vaughan, ON321,974n/a 
      Corpus Christi, TX326,332945.8%
      Riverside, CA327,56913635.6%
      Santa Ana, CA332,61015352.6%
      Stockton, CA311,10312525.1%
      Lexington-Fayette, KY322,2001011.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.