How Expensive Is It to Live in Savannah, Georgia?

Understanding the financial aspects of daily life in a new city is a primary consideration for many. This article provides a comprehensive look into the cost of living in Savannah, Georgia. It examines various expenditure categories to help potential residents gauge the financial implications of making Savannah their home.

Key Cost Categories in Savannah

Housing represents the most significant expenditure for residents in Savannah. Average rental costs vary by unit size. Studio apartments typically range from $1,099 to $1,856 per month. One-bedroom apartments average $1,095 to $1,811, while two-bedroom units are $1,519 to $2,111. The average monthly rent across all property types is approximately $1,762.

For homeownership, the median home price in Savannah ranges from $260,000 to $360,000. Neighborhoods closer to the historic district or waterfront areas often command higher prices due to their unique appeal and architectural preservation. The housing market in Savannah is influenced by factors such as limited inventory and consistent demand.

Utility expenses in Savannah include electricity, water, internet, and trash services. For a typical apartment of approximately 915 square feet, the combined average monthly cost for cooling, heating, electricity, water, and garbage is around $139.95. Internet services add about $64 per month. Energy bills can range from $164 to $206.53 monthly, and phone services typically cost between $177 and $191.37 per month. Water and sewer bills average approximately $47 per month.

Food and grocery costs in Savannah generally align with or are slightly higher than national averages. An individual might budget around $40 per day for groceries, while a family could spend approximately $7,238 annually. Monthly grocery bills for a single person are estimated at $709, and for two people, around $900. Dining out in Savannah averages about $16 per person for a single meal.

Transportation costs in Savannah encompass both private vehicle expenses and public transit options. The average annual cost for car insurance is around $1,705, and gasoline prices have been reported at approximately $2.25 per gallon. Public transportation is provided by Chatham Area Transit (CAT), offering:

• One-way bus fare: $1.50
• Day pass: $3
• Weekly pass: $14
• Monthly pass: $50

Additionally, the downtown dot Express Shuttle and Savannah Belles Ferry provide free services.

Healthcare expenses in Savannah are generally comparable to national averages, though some services may cost more. A doctor’s visit typically ranges from $107.94 to $158.81. Prescription drug costs can vary, with an average around $22.69 to $429.98, depending on the medication. For pet owners, a veterinary visit averages between $50.29 and $67.03. Individual major medical health insurance plans can start from around $197 per month, with an average cost of $585.

Miscellaneous expenses cover a range of discretionary spending. A gym or fitness center membership typically costs about $38 per month. For entertainment, a movie ticket averages around $12.25. Other personal care and entertainment costs are often reported as being slightly cheaper than the national average.

Savannah’s Cost of Living in Context

Savannah’s overall cost of living generally positions it as a more affordable city compared to the national average, yet slightly higher than the state average for Georgia. The cost of living index for Savannah is around 97, indicating it is approximately 3% less expensive than the national average, which is set at 100. Other reports suggest Savannah’s cost of living is between 6.6% and 10% lower than the national average.

When comparing Savannah to the state of Georgia, the cost of living can be about 4.6% to 5% higher than the Georgia average. This difference is primarily influenced by specific categories within the cost of living. For instance, housing costs in Savannah are notably lower than the national average, estimated to be between 5% and 28% cheaper. This affordability in housing significantly contributes to the city’s overall lower cost of living relative to the country as a whole.

In terms of other categories, utility costs in Savannah are often reported as being similar to or slightly higher than the national average, ranging from 0% to 1% above the national benchmark. Groceries in Savannah tend to be slightly more expensive, approximately 2% to 2.5% higher than the national average. Healthcare expenses also show a higher comparative cost, about 9% to 14% above the national average. Conversely, transportation costs in Savannah are generally lower than the national average, by about 3.7% to 8%.

Factors Shaping Savannah’s Costs

Savannah’s robust tourism industry significantly influences its local economy and, consequently, its cost of living. The continuous influx of visitors drives demand for services, dining, and entertainment, which can elevate prices in these sectors. The city’s thriving tourism, coupled with military installations and growing tech and service industries, creates steady demand for housing, impacting both rental and purchase markets.

The city’s unique location and historical preservation efforts also contribute to housing dynamics. Its coastal setting and commitment to maintaining historic architecture limit new construction in desirable areas, affecting supply and demand. This often leads to higher property values in well-preserved districts due to the scarcity of available land and the appeal of historic homes.

Property taxes are another contributing factor to the cost of homeownership in Savannah. In Georgia, property is taxed at an assessment rate of 40% of its fair market value, as determined by the Chatham County Board of Assessors. The city of Savannah, Chatham County, and the School Board each levy separate property taxes. Property tax exemptions, such as the homestead exemption for owner-occupied homes, can reduce the taxable value, potentially saving homeowners around $2,000.

The local job market and average wages also play a role in the overall affordability. Savannah boasts a low unemployment rate of 2.9%, indicating a healthy job market. However, the median household income in Savannah, ranging from $46,149 to $56,782, is generally lower than the national average household income. This disparity means that while living costs can be lower, the earning potential might also be reduced, requiring careful financial planning for residents.