If you want the inside scoop on the cost of living in DC, you've come to the right spot. Washington, DC, known as America’s capital city or district, plays a very significant role in our country. As a national hub of history, politics, culture, and education in the U.S., it’s no wonder all types of people flock here to make it their home.

In this blog, we share a detailed picture of the cost to live in DC, from annual expenses to what you'll pay for a gallon of gas. Let's get to it! 

Summary:

• Cost of Living in DC
• Other Living Expenses in DC
  • Grocery Shopping and Dining Out in DC
  • Transportation Options and Fuel Costs in DC
  • Healthcare and Insurance Costs in DC
  • Utilities, Internet, and Phone Expenses in DC
  • Tax Rates in the DC Area
  • Recreation Costs in DC
• Average Salary in DC
• Average Cost of New Construction Homes in DC by Neighborhood
• Conclusion

Cost of Living in DC

Washington, DC, offers abundant amenities, attractions, and opportunities, making it a highly appealing place to live. However, new residents should prepare for a higher cost of living than the rest of the country. 

According to 2023 data from the Missouri Economic and Research Center (MERIC®), Washington, DC, ranks 50th on their list with an annual cost of living score of 146.8. Per RentCafe®, which sources its data from the Council for Community and Economic Research (C2ER®), DC living expenses are 47% higher than the national average as of March 2024. 

Housing is the most significant cost for DC residents, be it a mortgage or rent, and these expenses also exceed the national average by a staggering 140%, as reported by RentCafe in March 2024. In February 2024, the median home price in Washington, DC, was $600K, down 1.6% year-over-year, according to Realtor.com®. The average rent is $2,400 monthly, according to RentCafe, which can vary depending on the apartment size.

Given the cost of living in Washington, DC, the Massachusetts Institute of Technology (MIT®) offers insights into the annual income, after taxes, needed for different households to live in the area. For example, the yearly income required for an adult with no children is estimated at $42,965, while for two working adults with two children, it increases to $118,246. 

For an overall idea of yearly living expenses in DC, the U.S. Bureau of Economic Analysis® estimated average annual personal consumption costs in DC in 2021 to be $78,809.

Other Living Expenses in DC

Now, let's take a more detailed look at the average cost of other essential DC living expenses, from groceries and gas to health care and having fun in the area.

Grocery Shopping and Dining Out in DC

As of March 2024, RentCafe finds grocery prices in Washington, DC, to be approximately 5% higher than the national average. MIT estimates that a single adult spends around $5,340 annually on food, while that expense may average $15,695 yearly for a household of four, two working adults and two children. 

Generally, residents can expect to pay slightly higher prices for specific grocery items. For instance, per RentCafe’s March 2024 data, a loaf of bread may cost around $4.27, a gallon of milk approximately $4.83, a carton of eggs about $3.99, and a frozen meal runs roughly $4.17. 

Dining out can also add to the cost of living in the District of Columbia. Findings from crowdsourced data at Numbeo® report that a fast-food meal averages $12, an inexpensive restaurant bill is approximately $25, and a three-course dinner for two at a mid-range restaurant is about $100 as of March 2024.

Transportation Options and Fuel Costs in DC

The entire DC metro area is ideal for commuters with its extensive transportation systems, though these also come with fees. According to RentCafe, transportation costs in March 2024 are approximately 6% higher than the national average. 

For those who drive a personal vehicle, a gallon of regular gas in February 2024 is around $3.51 per AAA®. 

For those who prefer public transportation, the Washington Metropolitan Area Transit Authority (WMATA) offers monthly unlimited passes ranging from $64–$192 in 2024, depending on the average distance and number of trips you take. Another WMATA option is purchasing a reusable SmarTrip® card. These cards cost $10 upfront, and you can automatically reload them to pay for rides on Metrorail trains and buses, where fares range from $1.75 to $5.90. 

Capital Bikeshare offers another eco-friendly and cost-effective transportation option, with a day pass costing $8 and a yearly membership running $95 as of 2024, per the website. 

According to MIT, as of February 2024, the annual transportation expenses for DC residents average $6,400 for a single adult and around $10,700 for a household of two working adults and two children.

Healthcare and Insurance Costs in DC

Access to quality health care is essential no matter where you live. Healthcare living expenses in Washington, DC, are 10% higher than the national average, according to RentCafe in March 2024.

For routine medical visits, RentCafe reports residents can expect to pay these average fees:

• Doctor’s appointment: $156.21
• Dental visit: $135.09
• Optometrist: $112.83 

Several insurance plans are available in Washington, DC, offering different levels of coverage and monthly premiums. MoneyGeek® reports that for 2024, the least expensive insurance options for individuals range from Bronze plans at $337 to Platinum plans at $534.

Overall, annual medical expenses for a single adult amount to approximately $2,700, while a household of two working adults and two children can expect to spend around $8,700, per MIT’s February 2024 data.

Utilities, Internet, and Phone Expenses in DC

Naturally, estimating what the cost to live in DC is includes managing utility, internet, and phone expenses. Per RentCafe, utility expenses are 10% higher than the national average as of March 2024, with energy bills running approximately $227 monthly. Of course, these costs can vary based on usage and provider.

For internet and mobile expenses, the average monthly cost for a single adult is around $180, and a household of two working adults and two children could spend around $228, according to MIT as of February 2024.

Tax Rates in the DC Area

Forbes® reports that 2023–2024 local income tax rates vary in DC, ranging from 4.0% to 10.75%, and the sales tax rate is 6.0%. 

Washington, DC, does offer various tax deductions and credits, which may help reduce your tax liabilities. Forbes finds these include credits like the adult dependent care credit, childcare credit, and a property tax fairness credit. Taking advantage of these deductions and credits could result in potential tax savings for residents.

Recreation Costs in DC

Being a historical, political, and educational hub, Washington, DC, offers a plethora of recreational activities for residents and visitors. One remarkable aspect of the city is the abundance of free attractions, including iconic landmarks like the Smithsonian museums, Lincoln Memorial, and the U.S. Capitol. 

Baseball fans can attend a Washington Nationals game. While ticket prices may vary depending on location, seats for the 2024 season are available for an average price of $59 on SeatGeek.com® and are sometimes as low as $10. For movie lovers, ticket prices at Fandango® as of March 2024 typically range from $12–$16, depending on the time of day, with discounts available for seniors. 

Maintaining an active lifestyle is also important to many residents, and the city offers a range of gym memberships to suit different budgets. Options include Planet Fitness®, with memberships starting at $10 per month, up to higher-end facilities like Equinox®, which can reach up to $395 per month. More moderate options like Crunch offer memberships for around $50 per month.

Average Salary in DC

DC is renowned for its proximity to major employers across numerous industries. According to the February 2024 data from MIT, annual salaries in Washington, DC, vary significantly depending on the profession. For instance, professionals in the legal sector command an average salary of $200K annually. In contrast, people who work in healthcare support earn a yearly salary of $39.8K. 

As of January 2024, the average annual salary in Washington, DC, is $79,211, according to ZipRecruiter®. This figure covers a broad spectrum, with top earners making around $116K and those in the 25th percentile earning approximately $55K yearly.

Average Cost of New Construction Homes in DC by Neighborhood

Whether you’re relocating for work or drawn to the exciting Washington, DC, lifestyle, you can find beautiful new construction homes in some of the U.S. capital’s best neighborhoods to make the most of all DC offers.

National Harbor

National Harbor, Maryland, sits south of DC along the Potomac River. It's got everything you'd want for a modern yet laid-back lifestyle: upscale homes, chic shops, amazing restaurants, and gorgeous views. Plus, the area’s proximity to DC offers easy access to the city. You’ll also find quality schools and fun attractions like the Capital Wheel and the MGM® National Harbor Casino. It's a nice blend of city and suburbia and a great spot for anyone seeking luxury living and a relaxing atmosphere.

The cost of a new construction home near National Harbor, according to NewHomeSource® in March 2024, ranges from the mid $400Ks to the low $1M.

Maple Lawn

Maple Lawn, Maryland, west of Baltimore, is like stepping into a picture-perfect suburban paradise. This lovely neighborhood features beautiful tree-lined streets, upscale homes, and a town bustling with shops, restaurants, and cafes. Residents enjoy amenities like the community pool, fitness center, and scenic walking trails, making it an ideal spot for virtually anyone.

As of March 2024, the cost of a new construction home near Maple Lawn, according to NewHomeSource, averages in the mid $800Ks.

Laurel

Laurel, a hidden gem between Baltimore and DC, offers a cozy suburban feel with a dash of urban flair. With a rich history dating back to the 19th century, Laurel is home to charming neighborhoods, diverse dining options, and plenty of parks and green spaces to explore. Don't miss the Laurel Park racetrack for some thrilling horse racing action, and be sure to check out Main Street for its quaint shops and local eateries—it's the perfect spot for a leisurely stroll on a lazy weekend afternoon.

NewHomeSource shares that the cost of a new construction home near Laurel ranges from the high $400Ks to the mid $600Ks as of March 2024. Our new construction homes in Laurel start in the mid $500Ks.

Rockville

Rockville, MD, northwest of Washington, DC, combines historic charm and modern amenities. Explore the city's past at sites like the Beall-Dawson House or enjoy the outdoors at Rock Creek Regional Park. Residents have an array of dining options, from cozy cafes to upscale restaurants on Rockville Town Square. With quality schools, a vibrant arts scene, and easy access to public transportation, Rockville is a great place to call home.

The cost of a new construction home in Rockville ranges from the mid $500Ks to almost $2.2M, per NewHomeSource as of March 2024. Our Rockville new construction homes start in the mid $500Ks.

Potomac

You’ve heard of the river, but there’s also the city of Potomac. This area is synonymous with luxury living and offers prestigious neighborhoods, sprawling estates, and upscale amenities. Located along the Potomac River, northwest of Washington, DC, Potomac boasts quality schools and exclusive country clubs like the Congressional Country Club. Residents enjoy a serene suburban setting with easy access to outdoor recreation at Great Falls Park and the Chesapeake & Ohio Canal National Historical Park, making Potomac a coveted enclave for those seeking a high-end lifestyle.

The cost of a new construction home near Potomac, according to NewHomeSource in March 2024, ranges from $1.9M to $3.2M. Browse our new construction homes in Potomac.

Boyds

Boyds, MD, part of the scenic countryside northwest of Washington, DC, offers a tranquil retreat from the hustle and bustle of city life. With its stunning landscapes and charming rural atmosphere, Boyds is perfect for those seeking a peaceful escape from the busy district area. Outdoor enthusiasts appreciate nearby attractions, such as Black Hill Regional Park and Little Seneca Lake, for hiking, boating, and picnicking. While primarily residential, Boyds features small local businesses and eateries like Butler's Orchard, where visitors can enjoy seasonal fruit-picking and farm activities.

As of March 2024, the cost of a new construction home in Boyds ranges from the upper $400Ks to the mid $800Ks, per NewHomeSource. Our new construction homes in Boyds start in the mid $900Ks for single-family houses, while our townhomes start in the upper $500Ks.

Conclusion

While it offers unparalleled amenities and appeal, potential residents should prepare for a higher-than-average cost of living in Washington, DC. However, if you’re planning a move to the area, by understanding these expenses, you can plan ahead. Though the cost to live in Washington, DC, may be somewhat pricier, there’s no place in the U.S. quite like the nation's capital city, which makes it a captivating place to call home.

Explore new construction homes in DC today or browse more Pulte blogs.

Written By: Jordan Thomson, Freelance Writer