What Is the Average Cost of Living in Oklahoma?

The cost of living represents the financial resources necessary to maintain a particular standard of living in a given geographical area. It encompasses the expenses for basic necessities like housing, food, transportation, and healthcare. Understanding these costs is crucial for financial planning, especially for individuals considering a move or evaluating their current financial health. This article explores the average cost of living in Oklahoma, providing a detailed breakdown of its primary components.

Key Expense Categories

Housing is a primary living expense, and in Oklahoma, it is notably more affordable than the national average. The median home value across the state typically ranges from $174,600 to $243,800, significantly lower than the national median. For renters, the average monthly rent for a one-bedroom apartment is around $905, while a two-bedroom unit averages about $1,078.

Utility costs are another significant monthly expenditure. Residents can anticipate average monthly utility expenses of $397 to $407. This figure includes electricity, natural gas, water, internet, and trash collection.

The average monthly electric bill for residential customers often falls within the range of $135 to $200. Water and trash services are often combined, with typical monthly costs ranging from $55 to $70. Internet and cable services add approximately $107 to the monthly utility budget.

Food expenses in Oklahoma are among the lowest nationwide, contributing to the state’s overall affordability. Oklahomans spend an average of $230 per person per month on groceries and non-restaurant food items. This affordability is partly due to the state’s agricultural output, which provides access to competitively priced local produce, meat, and dairy.

Transportation costs encompass expenses related to vehicle ownership and public transit. Annual transportation costs in Oklahoma can range from $5,477 to $15,530. Gas prices are generally lower than the national average. Car insurance premiums vary significantly based on coverage type, driver profile, and location, with minimum coverage costing around $557 annually and full coverage averaging closer to $2,796 per year. Public transportation options are primarily limited to major metropolitan areas, making personal vehicle ownership a common necessity across much of the state.

Healthcare expenses are an important budget consideration. The average annual healthcare cost per person in Oklahoma is approximately $6,878. This figure covers a range of services, including insurance premiums, doctor visits, and prescription medications.

Miscellaneous expenses include personal care items, clothing, entertainment, and various taxes. Oklahoma has a state sales tax rate of 4.5%, but local municipalities can add their own rates, leading to combined state and local sales tax rates as high as 11.5% in some areas. Property taxes in Oklahoma are relatively low, with an average effective rate of 0.76% to 0.90% on owner-occupied housing value. The median annual property tax payment is around $1,445.

Regional Differences in Costs

While overall averages provide a general picture, the cost of living within Oklahoma can vary considerably depending on the specific region. Factors such as population density, economic vibrancy, and the urban versus rural nature of an area significantly influence local expenses. Metropolitan centers like Oklahoma City and Tulsa generally exhibit higher costs compared to smaller towns or more rural parts of the state.

Housing costs, in particular, show noticeable regional differences. For example, the price of a home in Oklahoma City might be double that in a smaller community. Similarly, average rents for apartments in Oklahoma City and Tulsa tend to be higher than those found in more affordable cities such as Lawton or Muskogee. This disparity is often driven by greater demand and more amenities in urban environments.

Transportation expenses also reflect these regional variations. Although gas prices in Oklahoma are generally lower than the national average, they may be slightly higher in remote rural areas due to distribution costs. The availability and necessity of public transportation differ, with residents in urban hubs having more options, while those in rural areas rely almost exclusively on personal vehicles, impacting their overall transportation budget.

Oklahoma’s Cost of Living Compared Nationally

Oklahoma consistently ranks among the most affordable states in the United States, offering a lower cost of living than the national average. According to various indices, Oklahoma’s overall cost of living is approximately 14% to 14.5% cheaper than the national average, which is typically set at an index of 100. This makes Oklahoma one of the states with the lowest expenditures nationwide, often ranking as the second or third most affordable.

This affordability is largely driven by its housing market. Oklahoma’s housing costs are considerably below the national median, with its housing cost index being one of the lowest in the country. Grocery expenses are also notably lower than the national average, contributing to reduced household food budgets. Utilities in Oklahoma are either comparable to or slightly lower than the national average, further enhancing the state’s affordability. Transportation costs similarly remain more affordable, benefiting residents with lower gas prices and generally shorter commutes compared to many other parts of the U.S.