A+
16%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
50%
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 New Castle Indiana National
Cost of living8490100
Goods & Services9694100
Groceries9698100
Health care9696100
Housing5072100
Transportation9595100
Utilities113107100

An Overview of Cost of Living in New Castle, IN

Knowing the cost of living in New Castle 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 New Castle stands at 84, marking it 16% lower than the national average.

Housing costs often consume a significant share of your take-home income, often surpassing 30%. Fortunately, New Castle distinguishes itself by reporting housing expenses that are 49.6% below the national average. This indicates that both owning a home and renting in this area are notably more budget-friendly compared to the rest of the nation. With such favorable housing affordability, residents of New Castle can allocate more of their income to housing, enhancing their financial flexibility.

Is New Castle Affordable?

Wondering if New Castle 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 New Castle, for example, the median home price is 59.2% lower than what folks pay nationally, and monthly rent is 27.3% lower than the usual rates. Plus, income levels matter too, with New Castle boasting a median household income of $42,803, which is 22.6% lower than the national average.

What Factors can Influence the Cost of Living in New Castle?

Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In New Castle, the utilities index is 13.1% higher than the national average.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In New Castle, the groceries index is 4% lower than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in New Castle starts at 7% and the income tax rates start at 3.23%.

Where is the Data From?

The New Castle 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 New Castle is 7% lower than the Indiana average
  • The cost of living in New Castle is 16% lower than the national average
  • New Castle housing is 50% lower than the national average
  • Indiana general sales tax is 37% higher than the national average
  • Indiana state income tax is 21% higher than the national average

Most Affordable Places to Live in and Around New Castle

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Compare New Castle, IN 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$51,739$4,312$1,207$1,552
      Renters$25,210$2,101$588$756
      A good indicator of the general affordability of housing in New Castle, IN, 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 New Castle, the median monthly income is $51,739 for those who own their own homes. Under the standard rule, that income level would allow for $1,207 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $25,210, per the median income in the area. That would allow for renters to spend up to $588 on monthly rental expenses.

      Indiana Sales Tax

      State General Sales Tax With Max Surtax
      Indiana 7% 7%

      Indiana Income Tax

      State Income Tax (Low) Income Tax (High)
      Indiana 3.15% 3.15%

      Goods & Services

      Item New Castle National avg. Difference
      Haircut $16.50$24.2632.0%
      Beauty Salon $30.94$45.5632.1%
      Toothpaste $3.69$3.700.4%
      Shampoo $1.30$1.281.1%
      Movie $11.69$12.133.6%
      Bowling $11.24$18.0037.6%

      Groceries

      Item New Castle National avg. Difference
      Ground Beef $5.74$5.841.8%
      Fried Chicken $1.39$1.5711.7%
      Milk $4.59$4.671.8%
      Potatoes $4.88$4.931.0%
      Pizza $12.18$12.090.8%
      Beer $9.64$10.417.4%

      Health Care

      Item New Castle National avg. Difference
      Optometrist $138.77$125.6810.4%
      Doctor $101.43$135.7825.3%
      Dentist $122.83$113.298.4%
      Ibuprofen $10.19$10.654.3%
      Lipitor $475.45$468.601.5%

      Housing

      Item New Castle National avg. Difference
      Home Price $75,300.00$184,700.0059.2%
      Avg. Mortgage Payment $1,324.56$2,346.6943.6%
      Apartment Rent $690.00$949.0027.3%

      Transportation

      Item New Castle National avg. Difference
      Gasoline $3.51$3.461.4%
      Tire Balancing $47.59$59.9220.6%

      Utilities

      Item New Castle National avg. Difference
      All Electricity $236.28$193.9921.8%
      Phone $189.86$192.251.2%
      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.
      Blountsville, IN837822.2%
      Mount Auburn, IN927723.5%
      Cadiz, IN2428218.2%
      Losantville, IN2588217.9%
      Mooreland, IN3388317.4%
      New Castle, IN17,2348416.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Perry, GA17,235928.2%
      Anacortes, WA17,23114040.0%
      Tavares, FL17,228954.7%
      Flowing Wells, AZ17,2278712.8%
      Pampa, TX17,2268119.1%
      New Castle, IN17,2348416.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.