Cost of Living in Olympia, WA

An Overview of Cost of Living in Olympia, WA

Knowing the cost of living in Olympia 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 Olympia stands at 128, marking it 28% higher than the national average.

The cost of living in Olympia is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Olympia falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a very significant part of the Olympia cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 63.3% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Olympia goods and services are 13.1% more expensive than the national average, leaving you with less money at the end of the month.

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

When it comes to knowing a city, its residents are the experts. We conducted a survey with 16 locals to understand their opinions on the cost of living in Olympia. The results indicated that 44% found it reasonably priced with decreasing prices of goods and services, while 56% viewed it as quite expensive, with increasing prices.

Is Olympia Affordable?

Wondering if Olympia 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 Olympia, for example, the median home price is 79.1% higher than what folks pay nationally, and monthly rent is 26.3% higher than the usual rates. Plus, income levels matter too, with Olympia boasting a median household income of $63,185, which is 14.2% higher than the national average.

What Factors can Influence the Cost of Living in Olympia?

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Olympia, healthcare costs are 23.4% higher than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

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 Olympia starts at 6.5% and the income tax rates start at 0%.

Where is the Data From?

The cost of living data in Olympia 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.