While the “City of Oaks” offers the perfect blend of Southern charm, a laid-back vibe, and a thriving tech community, what impact might the cost of living in Raleigh, NC, have on your wallet and lifestyle? 

In this blog, we provide you with the information you need to know about living expenses in Raleigh, NC. From housing to area employers and salary expectations, we've got you covered. Join us as we dive into the facts and figures that can help you decide if Raleigh is right for you.

Summary:

• Factors Affecting the Cost of Living in Raleigh, NC

  • Housing Costs in Raleigh

  • Utilities and Monthly Expenses

  • Food Prices and Grocery Expenses

• Healthcare and Transportation Costs in Raleigh

• Income and Employers in Raleigh

• Raleigh Cost of Living Comparison

• Average Cost to Build a New Home in Raleigh by Neighborhood

• Conclusion

Factors Affecting the Cost of Living in Raleigh, NC

Overall, Raleigh’s cost of living is quite appealing. Payscale’s® 2023 data finds the city is 4% below the national average. When it comes to the cost of living index, Raleigh, NC, has a 96.8 rating from the Council for Economic and Social Research as of the third quarter of 2023. This number reflects the city's affordability compared to the rest of the country.

MIT’s Living Wage Calculator estimates the average monthly cost of living in Raleigh, NC, for various households, covering categories like food, childcare, health care, housing, transportation, civic, and other miscellaneous costs. According to MIT’s 2023 data, monthly living expenses amount to approximately $2,700 for a single adult with no children, while a working couple with two children averages $8,000.

Let’s dive into more specific categories for a clearer picture of the average cost of living in Raleigh, North Carolina. 

Housing Costs in Raleigh

As of December 2023, while the median home listing price in Raleigh was $475K, the median sale price landed at $458.3K per Realtor.com®.

Apartments.com® finds the average rent in Raleigh is around $1,340 monthly for a one-bedroom apartment, and two-bedroom apartments average $1,565 as of February 2024. 

Utilities and Monthly Expenses

Per Payscale®, Raleigh’s utility prices in 2023 were slightly elevated at 2% higher than the national average, and monthly phone bills averaged $194. Additionally, EnergySage® reports residents spend around $188 per month on electricity, amounting to an annual total of about $2,256 (February 2024). 

Food Prices and Grocery Expenses

Food and grocery expenses in Raleigh, NC, are more budget-friendly. Payscale’s® 2023 data finds that grocery prices for residents are 8% lower than the national average. Here's a snapshot, per Payscale®, detailing the average cost of a few essential grocery items:

• Loaf of bread: $3.55

• Gallon of milk: $2.23

• One dozen eggs: $2.06

• Bananas: $3.08

• Hamburger: $4.70

Being a relatively big city, Raleigh offers abundant dining options, from local fast-food joints to high-end restaurants. While there may be no actual average cost for dining out, you can choose from plenty of affordable places.

Healthcare and Transportation Costs in Raleigh

Aside from housing costs, medical bills and gas prices can be some of the more significant expenses in a budget. Here’s what you can expect with healthcare and transportation costs in Raleigh.

Overview of Healthcare Facilities and Costs in Raleigh

Raleigh has a comprehensive healthcare infrastructure, including hospitals, clinics, and specialized medical centers, giving residents access to a wide array of healthcare services. According to Payscale®, healthcare costs in Raleigh are 3% higher than the national average as of 2023, reporting these average expenses for medical services:

• Doctor's appointment: $128.16

• Dental visit: $110.57

• Optometrist: $120.72

• Prescriptions: $472.20

• Veterinary appointment: $56.75

The actual expenses are likely to vary based on factors like insurance coverage and the care required, but understanding the availability of these services and their costs is essential for residents making decisions about their healthcare needs. 

Public Transportation Options and Expenses

Public transportation in Raleigh is relatively efficient and cost-effective, making it convenient for residents to navigate the city. Raleigh’s public transportation system includes GoRaleigh, GoRaleigh Access, and the Transit Authority for public commuting options.

According to Payscale® (2023), transportation expenses, including bus fares and gas prices, are 5% lower than the national average, contributing to the overall ease and affordability of traveling around Raleigh.

Regular unleaded gas in Raleigh, per AAA® as of February 2024, averages $3.03 per gallon. For those who need or prefer public transportation, GoRaleigh offers a monthly pass for $40, providing users with unlimited bus rides for 31 consecutive days. That can be a practical and economical choice for daily commuters.

Cost of Owning a Car in Raleigh

Owning a car comes with various expenses, so being aware of these costs is essential for residents who rely on their personal vehicles. According to January 2024 data from GoBankingRates®, car repairs in North Carolina average just over $400, car insurance runs about $1,368 annually, and you can expect a state sales tax of 3% if you buy a car.

Income and Employers in Raleigh

How much should you earn to align with the Raleigh living cost? Let's explore Raleigh’s business scene and salary requirements and discover what you might need to make to live here comfortably.

Median Income and Livable Wage Raleigh, NC

As of 2022, the median household income in Raleigh was $78,631, based on data from the U.S. Census Bureau. According to the MIT Living Wage Calculator, as of 2023, a single adult with no children in Raleigh should make a minimum of $18.31 hourly to ensure they meet their essential needs. For a family of two working adults and two children, that hourly wage rises to $27.83 per adult.

Salary Expectations and Livable Income in Raleigh

Understanding salary expectations and achieving a livable income is necessary wherever you live. MIT’s Living Wage Calculator finds the required annual income after taxes in Raleigh for one adult with no children is $32,366 as of 2023. For a family of two working parents and two children, that annual income after taxes increases to $96,458.

In Raleigh, typical annual salaries differ widely across various industries. Per MIT’s 2023 data, salaries can range from $26.3K for roles in food preparation and other service-related jobs to $125.4K for upper management positions. 

Major Employers and Industries in Raleigh

Being the capital of North Carolina, Raleigh is a hub for state government offices, with thousands of individuals in various governmental roles. The region, which encompasses Raleigh and Durham, is also known for its proximity to major employers in the research, education, healthcare, and information technology sectors.

Prominent companies in the area include IBM®, WakeMed Health & Hospitals, SAS® Institute Inc., and Cisco® Systems Inc. Many of these businesses are based in Research Triangle Park (RTP), which spans 7,000 acres and hosts over 300 companies. Affiliated with Duke University, the University of North Carolina at Chapel Hill, and North Carolina State University, RTP plays a big role in fostering innovation.

Raleigh Cost of Living Comparison

Let’s take a look at how Raleigh’s cost of living compares to other metro areas in the country, specifically Denver, Austin, and Portland.

• Denver, CO vs. Raleigh, NC: Raleigh’s cost of living is 4% lower than the national average, according to Payscale® (2023). This affordability appeals to potential residents and incorporates factors like housing, transportation, and healthcare. On the other hand, Denver’s cost of living is 11% higher than the national average, partially driven by higher housing prices and a competitive job market. Residents contemplating a move may find Raleigh a more budget-friendly option while still enjoying a big-city lifestyle.

• Austin, TX vs. Raleigh, NC: Austin and Raleigh are thriving tech hubs with growing job markets. Austin’s cost of living is only 1% higher than the national average per Payscale® in 2023, but housing is notably 16% higher. While both cities share an exciting cultural scene and continue to grow, Raleigh's housing costs are significantly more affordable. 

• Portland, OR vs. Raleigh, NC: Portland, Oregon, and Raleigh represent two very distinct lifestyles. Portland's cost of living index is 119.3 or 20 points above average per Axios as of the third quarter of 2023, while Raleigh’s is much lower at 96.8. While both cities have diverse cultures, Raleigh's housing costs are more reasonable, with Portland’s housing costs 62% above the national average (Payscale®, 2024). Depending on your budget, Raleigh may be a more financially accessible option without compromising on the community and opportunities for growth.

Average Cost to Build a New Home in Raleigh by Neighborhood

If you’ve got your sights set on new construction homes in Raleigh, check out these areas. Let’s uncover what it might cost to build a new home in some of Raleigh’s vibrant neighborhoods and suburbs.

Brier Creek

Brier Creek is in the northwest part of Raleigh and evolved from farmland into a popular mixed-use neighborhood. Its location provides convenient access to Research Triangle Park and Raleigh-Durham International Airport. The area offers diverse housing options, including single-family homes, townhomes, and apartments. Brier Creek Commons, a major shopping center, features a variety of retail stores, restaurants, and entertainment venues, and the Brier Creek Country Club adds an upscale touch to the neighborhood with a golf course and recreational amenities. The neighborhood's popularity among tech professionals is due to its proximity to RTP.

The cost to build a new home in Brier Creek, according to NewHomeSource® as of February 2024, ranges from the mid $300Ks to the upper $500Ks. Our Solana new construction homes near Brier Creek start in the mid $300Ks.

Apex

Located 15 miles southwest of Raleigh, Apex is full of charm and a range of housing options, from historic homes to modern residences. The downtown area features brick sidewalks, local shops, and abundant dining options. Apex Nature Park offers outdoor adventures, including trails, sports fields, and playgrounds. The town also has quality schools, making it a popular choice for households of all sizes, and offers a convenient commute to Raleigh and other nearby areas.

The cost to build a new home in Apex, according to NewHomeSource® in February 2024, spans the upper $300Ks to the low $700Ks.

Holly Springs

Holly Springs, about 10 miles southwest of Raleigh, is a friendly town known for its significant economic growth and quality schools. Originally a crossroads community in the 1800s, Holly Springs is now a sought-after suburb with a blend of traditional and contemporary housing. Parrish Womble Park and Bass Lake Park offer recreational activities, while the Holly Springs Towne Center is a central hub for shopping, dining, and entertainment. The town's commitment to preserving its friendly environment and a genuine sense of community contributes to its appeal as a desirable residential area in the Raleigh-Durham metro region, not far from our new construction homes in Durham.

NewHomeSource® finds the cost to build a new home in Holly Springs ranges from the low $300Ks to the mid $800Ks as of February 2024.

North Hills

North Hills, located just north of downtown Raleigh, is a popular mixed-use district that dates back to the 1960s. The neighborhood recently underwent redevelopment, transforming it into a well-planned live-work-play destination. The area is known for its trendy apartments, chic shops, and nightlife, making it a sought-after spot for those seeking a more urban lifestyle. Additionally, the community offers amenities like Midtown Park, with lovely green spaces, walking trails, and event venues.

The cost to build a new home near North Hills, per NewHomeSource® February 2024 listings, ranges from the upper $300Ks to the low $600Ks. Homes in our Solana new home community near North Hills start in the mid $300Ks.

Fuquay-Varina

Fuquay-Varina, established in the 1960s through the union of Fuquay Springs and Varina, is located about 20 miles southwest of Raleigh. Rich in history, Fuquay-Varina maintains its small-town appeal while undergoing modern growth. The downtown area preserves the town's heritage with its delightful range of coffee shops and local dining. Fuquay Mineral Spring Park features the original mineral spring for visitors and locals to explore, enhancing the town's historical significance.

Conclusion

Factoring in the average cost of living in Raleigh, NC, is essential if you’re planning a move here. Given Raleigh’s overall living costs are 4% below the national average, and with some financial planning, you can enjoy a comfortable lifestyle that includes housing, utilities, transportation, and discretionary spending.

And if a new home is in the budget, be sure to explore new construction homes in Raleigh, North Carolina, today or browse more Pulte blogs. 

Written By: Jordan Thomson, Freelance Writer

Last Updated: 6/5/2024