Cost of Living in Oconomowoc, WI

An Overview of Cost of Living in Oconomowoc, WI

Knowing the cost of living in Oconomowoc 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 Oconomowoc stands at 111, marking it 11% higher than the national average.

Housing costs are a major factor in the Oconomowoc 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 35.1% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Oconomowoc Affordable?

Is Oconomowoc 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 Oconomowoc, the median home price is 47.1% higher than the national average and monthly rent prices are 7% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Oconomowoc boasting a median household income of $96,588, 74.6% higher than the national average.

What Factors can Influence the Cost of Living in Oconomowoc?

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 Oconomowoc, the housing index comes in at 35.1% 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 Oconomowoc, the groceries index is 2.8% higher 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 Oconomowoc, the general sales tax rate starts at 5%, and income tax rates begin at 3.54%.

Where is the Data From?

The Oconomowoc 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.