What is the cost of living and how is it measured?
Well, according to Investopedia,
“The cost of living is the amount of money needed to sustain a certain standard of living by affording basic expenses such as housing, food, taxes and health care. The cost of living is often used to compare how expensive it is to live in one city versus another.”
It’s a great metric to have a familiarity with as you look at places to live and work. It can be a great tool to take into an interview when examining offers, and can even help you steer clear of an offer that may not be the best for you.
So, we built a calculator to make it easy to find and compare the cost of living in our community and beyond!
Check it out below.
There are two things you should consider when looking at cost of living.
1. The Cost of Living Metric
The actual metric is important because it provides a window into what living in the city looks like financially. It takes into account housing costs, commuting costs and even healthcare costs, plus much more. Lower usually means better, but not always.
2. The Context of Cost of Living
There’s a double edge sword to cost of living. While lower means better, it comes to a point where it can mean that a community’s cost of living is low because they have real trouble attracting and retaining their people. A low cost of living can usually be a good sign that a community may lack recreational activities, opportunities or even a sound education system.
Here’s a great video that further discusses the importance of considering cost of living.
If you’re considering an opportunity in a new city, make sure to know how that city compares to the national average. The highest offer may not always be the best offer.