C-
27%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
70%
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 Newberg Oregon National
Cost of living127111100
Goods & Services106105100
Groceries111109100
Health care110105100
Housing170123100
Transportation126117100
Utilities9696100

An Overview of Cost of Living in Newberg, OR

Getting a feel for the cost of living in Newberg is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Newberg is 127, which is 27% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you prioritize affordability when seeking a new place to live, Newberg may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Newberg falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a major factor in the Newberg cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 69.9% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

The cost of groceries continues to rise at an alarming rate. Over the last two years, grocery prices have increased by more than 10%! Unfortunately, in Newberg, the news isn't any better as grocery prices are 10.5% higher than the national average.

Is Newberg Affordable?

Is Newberg affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Newberg, for instance, where the median home price falls 84.8% higher than the national average, and monthly rent rates are 35% higher than usual. Additionally, median income levels contribute to the equation, with Newberg flaunting a median household income of $75,225, 36% higher than the national norm.

What Factors can Influence the Cost of Living in Newberg?

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as 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 with fewer subsidy offerings might experience an elevation in their cost of living.

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Newberg, the utilities index registers 3.8% lower than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Newberg, the general sales tax rate starts at 0%, and income tax rates begin at 4.75%.

Where is the Data From?

The cost of living in Newberg, 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.

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Cost Of Living Quick Facts

  • The cost of living in Newberg is 14% higher than the Oregon average
  • The cost of living in Newberg is 27% higher than the national average
  • Newberg housing is 70% higher than the national average
  • Oregon general sales tax is 100% lower than the national average
  • Oregon state income tax is 83% higher than the national average

Most Affordable Places to Live in and Around Newberg

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Compare Newberg, OR Cost of Living

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      Salary Calculator

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      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$92,240$7,687$2,152$2,767
      Renters$46,843$3,904$1,093$1,405
      A good way to judge both the affordability of the housing and the cost of living in Newberg 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. Newberg has a median income of about $92,240 for people who own homes. Based on that number, a maximum of $2,152 should be spent on expenses related to housing. Renters have a slightly different median income, which is $46,843. Based on this average, renters should spend no more than $1,093 on all rental costs if they want to maintain a non-impoverished standard of living.

      Oregon Sales Tax

      State General Sales Tax With Max Surtax
      Oregon 0% 0%

      Oregon Income Tax

      State Income Tax (Low) Income Tax (High)
      Oregon 4.75% 9.9%

      Goods & Services

      Item Newberg National avg. Difference
      Haircut $41.22$24.2669.9%
      Beauty Salon $60.58$45.5633.0%
      Toothpaste $3.63$3.702.0%
      Shampoo $1.53$1.2819.5%
      Movie $12.98$12.136.9%
      Bowling $18.31$18.001.7%

      Groceries

      Item Newberg National avg. Difference
      Ground Beef $6.17$5.845.7%
      Fried Chicken $2.03$1.5728.8%
      Milk $5.04$4.677.9%
      Potatoes $4.39$4.9311.1%
      Pizza $12.21$12.091.0%
      Beer $12.07$10.4115.9%

      Health Care

      Item Newberg National avg. Difference
      Optometrist $131.94$125.685.0%
      Doctor $188.49$135.7838.8%
      Dentist $115.08$113.291.6%
      Ibuprofen $11.58$10.658.7%
      Lipitor $386.53$468.6017.5%

      Housing

      Item Newberg National avg. Difference
      Home Price $341,400.00$184,700.0084.8%
      Avg. Mortgage Payment $3,332.86$2,346.6942.0%
      Apartment Rent $1,281.00$949.0035.0%

      Transportation

      Item Newberg National avg. Difference
      Gasoline $4.16$3.4620.3%
      Tire Balancing $84.45$59.9240.9%

      Utilities

      Item Newberg National avg. Difference
      All Electricity $182.73$193.995.8%
      Phone $190.36$192.251.0%
      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.
      Barlow, OR1851098.6%
      Gaston, OR5261088.4%
      Donald, OR1,4651098.9%
      Woodburn, OR26,00811212.4%
      Amity, OR1,55711212.5%
      Newberg, OR23,67612727.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Zion, IL23,677973.4%
      Searcy, AR23,6738416.0%
      Windsor, CO23,67913231.5%
      North Haven, CT23,66512423.5%
      Muscatine, IA23,6619010.4%
      Newberg, OR23,67612727.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.