What Is the Cost of Living in North Carolina?

North Carolina has experienced significant population growth in recent years. This growth has created a dynamic economic environment, making understanding the cost of living important for residents and newcomers. Daily life expenses in the state are influenced by housing, utilities, transportation, and consumer goods.

Understanding Core Living Expenses

Daily life in North Carolina involves various expenditures that contribute to the overall cost of living. These include housing, utilities, transportation, food, healthcare, and other necessities.

Housing

The median home price across North Carolina is approximately $367,800 to $384,100. For renters, monthly costs range from $892 to $1,844. These figures vary by location and property type.

Utility costs

Utility costs average around $371 per month statewide. This includes electricity, which ranges from $147.07 to $209 monthly. Natural gas bills average $119.11 each month, and water services cost around $20 per month.

Transportation

Transportation expenses include vehicle ownership, fuel, and maintenance. Full coverage car insurance costs between $139 and $163 per month, while minimum liability coverage averages $50 to $69 monthly. Annual fuel costs can reach about $2,073. Routine vehicle maintenance adds an estimated $100 to $150 to monthly budgets.

Food

Food expenses include groceries and dining out. An individual’s average monthly grocery bill is estimated at $303. For a family, this can be about $1,064 each month. A low-end meal per person ranges from $25 to $30, while a dinner for two at a moderate restaurant is $60 to $70.

Healthcare

Healthcare costs include insurance premiums and out-of-pocket expenses. An individual health insurance Silver plan averages about $664 monthly. The average annual cost for health insurance is around $6,352 per person. For a family of four, health insurance costs average $2,123 per month.

Miscellaneous

Miscellaneous expenses include childcare, personal care, clothing, entertainment, and subscriptions. Infant care averages about $1,021 per month, and care for a four-year-old costs around $850 monthly.

Cost Variations Across North Carolina

The cost of living in North Carolina varies significantly by geographical region. These differences are pronounced in housing costs, which drive overall living expenses.

Major metropolitan areas

Major metropolitan areas in North Carolina present the highest living costs. Cities like Raleigh, Charlotte, and Asheville have higher median home prices. Raleigh’s median home price is approximately $415,966, Charlotte’s is $355,613, and Asheville’s is around $389,777.

Mid-sized cities

Mid-sized cities and their suburbs offer a more moderate cost of living. Cities like Greensboro, Winston-Salem, Fayetteville, and Wilmington have lower median home prices. Greensboro’s median home price is approximately $217,806, Winston-Salem’s is $233,694, and Fayetteville’s is $189,417. Wilmington, a coastal city, has a median home price of about $388,031.

Rural areas

Rural areas across North Carolina offer the most affordable living options, especially for housing. Examples like Rural Hall show a median home price of $230,000. Other rural counties have lower median home prices, such as Anson County at $197,500 or Lumberton at $116,563. While costs are lower, access to certain services or diverse job markets may be more limited.

Factors Shaping North Carolina’s Cost of Living

Several factors contribute to North Carolina’s cost of living trends. These include economic, demographic, and policy influences that shape supply and demand across various expenditure categories.

Population growth

Population growth and in-migration contribute to rising costs, especially in urban centers. North Carolina has seen a substantial influx of new residents. This rapid population increase creates heightened demand for housing, infrastructure, and services, leading to price appreciation.

Job market

A robust job market and economic development also shape living expenses. Thriving industries like technology, healthcare, and finance attract talent and offer competitive wages. While a strong job market benefits residents, the increased purchasing power and demand can contribute to higher costs for goods and services.

Tax structure

The state’s tax structure impacts residents’ financial burden. North Carolina has a flat individual income tax rate, set at 4.50% for 2024, decreasing to 4.25% for 2025. The statewide sales tax rate is 4.75%, but combined state and local rates can reach 7.5%, depending on the county. Property taxes, at an average effective rate of 0.63% of owner-occupied housing value, also contribute to housing costs.

Geographic and environmental factors

Geographic and environmental factors influence property values and development costs. Proximity to natural features like coastlines or mountains can increase land values and construction expenses. Local development regulations and land scarcity, especially in high-demand areas, affect housing supply. This often leads to higher housing prices as demand outpaces available inventory.