Cost of Living in McKinney, TX

An Overview of Cost of Living in McKinney, TX

Are you thinking about relocating, but curious about the potential cost of living in McKinney? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in McKinney stands at 129, making it 29% 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.

If affordability is among your top priorities when searching for a new place to live, this area may not be the ideal fit, as the cost of living in McKinney is among the most expensive in the United States. Just a minority of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, McKinney falls into this category, which may not align with your goal of finding a budget-friendly living environment.

When it comes to the cost of living in McKinney, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 69.8% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

The things you purchase regularly, like clothes, haircuts, movie tickets and gym memberships, can make a big dent in your budget and make up 33% of the cost of living index. Unfortunately in McKinney, these items will cost you 20.6% more than what's considered the norm, making it a more expensive place to call home.

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

Nobody knows their city better than the people who actually live there. So, we asked 23 local residents how they would rate the cost of living in McKinney and this is how they responded. 48% of people said that the cost of living was affordable, with prices decreasing, while 52% of people said that the cost of living was very expensive and prices continue to rise.

Is McKinney Affordable?

Is McKinney affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in McKinney, the median home price is 77.5% higher than the national average and monthly rent prices are 51.9% higher than the typical rates. Additionally, the median income levels play a role in affordability, with McKinney boasting a median household income of $100,775, 82.2% higher than the national average.

What Factors can Influence the Cost of Living in McKinney?

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 McKinney, the housing index stands at 69.8% higher than the national average.

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 McKinney, the standard sales tax rate starts at 6.25%, and the income tax rates commence at 0%.

Healthcare: Healthcare expenditures and insurance premium rates can vary significantly, contingent upon the particular city or state. Factors such as the accessibility of healthcare facilities, out-of-pocket expenses for doctor's appointments, dental care charges, prescription medication costs, and expenses related to specialized medical care can all have an impact on the overall cost of living. In McKinney, healthcare costs are 9.8% higher than the national average.

Where is the Data From?

The cost of living data in McKinney displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.