F
24%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
86%
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 Vestavia Hills Alabama National
Cost of living12488100
Goods & Services9896100
Groceries9796100
Health care9487100
Housing18672100
Transportation9191100
Utilities108102100

An Overview of Cost of Living in Vestavia Hills, AL

Getting a feel for the cost of living in Vestavia Hills 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 Vestavia Hills is 124, which is 24% 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 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 Vestavia Hills 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, Vestavia Hills falls into this category, which may not align with your goal of finding a budget-friendly living environment.

Housing costs are a major factor in the Vestavia Hills 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 85.8% 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 Vestavia Hills Affordable?

Is Vestavia Hills an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Vestavia Hills is 106.1% higher than the national average, while the average monthly rent prices are 38.4% higher than average. The affordability of any location can also be influenced by median income levels. Vestavia Hills has a median household income of $110,478, which is 99.7% higher than the national average.

What Factors can Influence the Cost of Living in Vestavia Hills?

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 Vestavia Hills starts at 4% and the income tax rates start at 2%.

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 Vestavia Hills, the housing index comes in at 85.8% higher than the national average.

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Vestavia Hills, the utilities index stands at 7.5% higher than the national average.

Where is the Data From?

The cost of living in Vestavia Hills, 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 Vestavia Hills is 40% higher than the Alabama average
  • The cost of living in Vestavia Hills is 24% higher than the national average
  • Vestavia Hills housing is 86% higher than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Vestavia Hills

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Compare Vestavia Hills, AL 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$138,031$11,503$3,221$4,141
      Renters$50,125$4,177$1,170$1,504
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Vestavia Hills, AL, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Vestavia Hills, homeowners have a median income of $138,031. Using that number, a maximum of $3,221 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $50,125, which means there is a maximum of $1,170 to be spent on the costs of renting a home or apartment.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Vestavia Hills National avg. Difference
      Haircut $20.07$24.2617.3%
      Beauty Salon $45.74$45.560.4%
      Toothpaste $3.76$3.701.6%
      Shampoo $1.33$1.284.1%
      Movie $12.54$12.133.3%
      Bowling $16.37$18.009.1%

      Groceries

      Item Vestavia Hills National avg. Difference
      Ground Beef $6.01$5.843.0%
      Fried Chicken $1.66$1.575.5%
      Milk $4.54$4.672.9%
      Potatoes $5.23$4.936.0%
      Pizza $10.99$12.099.1%
      Beer $10.40$10.410.1%

      Health Care

      Item Vestavia Hills National avg. Difference
      Optometrist $92.33$125.6826.5%
      Doctor $101.83$135.7825.0%
      Dentist $125.78$113.2911.0%
      Ibuprofen $10.28$10.653.5%
      Lipitor $460.79$468.601.7%

      Housing

      Item Vestavia Hills National avg. Difference
      Home Price $380,600.00$184,700.00106.1%
      Avg. Mortgage Payment $1,935.73$2,346.6917.5%
      Apartment Rent $1,313.00$949.0038.4%

      Transportation

      Item Vestavia Hills National avg. Difference
      Gasoline $3.13$3.469.7%
      Tire Balancing $54.52$59.929.0%

      Utilities

      Item Vestavia Hills National avg. Difference
      All Electricity $219.40$193.9913.1%
      Phone $188.55$192.251.9%
      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.
      Cardiff, AL467723.5%
      Edgewater, AL8328218.1%
      Brighton, AL2,8738317.4%
      Mulga, AL7578316.9%
      Lipscomb, AL2,0558416.3%
      Vestavia Hills, AL34,48212424.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      McMinnville, OR34,46611817.7%
      Fair Oaks, VA34,46614746.6%
      Montgomery Village, MD34,41312525.2%
      Norristown, PA34,3921011.2%
      University CDP (Orange County), FL34,379927.5%
      Vestavia Hills, AL34,48212424.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.