The Cost of Living in Philadelphia: How It Stacks Up Nationally
New Age Realty Group, Inc.
May 29, 2024
Like any major city, the cost of living is a crucial factor to consider for anyone planning to move to or invest in Philly. According to various sources, the overall cost of living in Philadelphia is approximately 5% higher than the national average. This increase can be attributed to several factors, including housing, utilities, groceries, and transportation. Let's delve into each of these categories to understand where Philadelphia stands.
Housing
Renting in Philadelphia
The cost of housing in Philadelphia varies significantly depending on the neighborhood. For instance, the average rent for a one-bedroom apartment in the city center is around $1,908.45 per month, while outside the city center, it drops to approximately $1,314.37. For those looking for more space, a three-bedroom apartment in the city center costs about $3,177.36 per month, whereas outside the city center, it averages $2,104.38.
Buying in Philadelphia
For those interested in purchasing property, the median home price in Philadelphia is about $450,913. This is quite affordable compared to cities like New York or San Francisco. According to Zillow, the average home price in Philadelphia is approximately $220,168, making it a relatively affordable option for homebuyers.
Groceries
Grocery prices in Philadelphia are notably higher than the national average, by about 17%. Here are some typical prices for common grocery items:
On average, a single person in Philadelphia spends about $280.56 per month on groceries. This can vary depending on dietary preferences and shopping habits.
Transportation
Transportation is a critical aspect of living in any city, and Philadelphia offers a variety of options to get around, whether you prefer public transit, cycling, driving, or walking. The city’s transportation infrastructure is robust, catering to both residents and visitors alike. This section will delve deeper into the transportation costs and options available in Philadelphia, providing a comprehensive overview of what to expect.
Public Transportation - SEPTA
Philadelphia’s public transportation system is managed by the Southeastern Pennsylvania Transportation Authority (SEPTA). SEPTA is one of the largest and most comprehensive transit systems in the United States, serving Philadelphia and the surrounding counties. The network includes buses, subways, trolleys, and commuter rail lines.
Cost of Public Transportation
SEPTA offers a range of passes that can save frequent riders money. The weekly and monthly passes are particularly beneficial for daily commuters, providing unlimited rides on all SEPTA services within the specified period.
The SEPTA Key Card is an electronic fare payment system that offers convenience and ease of use. Riders can load money or purchase passes on their Key Card, which can be used across all SEPTA services. This system eliminates the need for cash and paper tickets, streamlining the travel experience.
SEPTA’s coverage is extensive, with numerous routes crisscrossing the city and connecting to suburban areas. Key lines include:
SEPTA also provides services for individuals with disabilities, ensuring that public transportation is accessible to all residents.
Cycling
Philadelphia is increasingly becoming a bike-friendly city, with numerous bike lanes, trails, and a popular bike-sharing program called Indego.
Indego offers both classic and electric bikes, with over 100 stations located throughout the city. It provides an affordable and environmentally friendly way to get around.
Indego Pricing
Philadelphia boasts several dedicated bike lanes and scenic trails, making cycling a convenient and enjoyable mode of transportation. Key routes include:
Driving
For those who prefer driving, Philadelphia’s road network is extensive, although traffic can be challenging during peak hours. Parking can also be an issue in densely populated areas like Center City.
As of the latest data, the average price of a gallon of gas in Philadelphia is around $3.71, which is slightly above the national average.
Parking costs in Philadelphia vary widely depending on the location. In Center City, parking can be quite expensive, with hourly rates ranging from $3 to $6 and daily rates often exceeding $20. Monthly parking rates in prime areas can range from $150 to $300.
Philadelphia is surrounded by several toll roads, including the Pennsylvania Turnpike and the Delaware River bridges, which can add to the cost of driving, especially for commuters from the suburbs.
Walking
Philadelphia’s compact and walkable urban core makes it ideal for pedestrians. Many of the city’s attractions, restaurants, and shops are within walking distance of each other, particularly in neighborhoods like Center City, Old City, and South Street.
Philadelphia ranks high in walkability among major U.S. cities. The grid layout of the streets, coupled with pedestrian-friendly infrastructure, encourages walking as a primary mode of transportation for short distances.
Taxis and Ride-Sharing
For those times when public transit or biking aren’t convenient, Philadelphia offers a range of taxi and ride-sharing services, including Uber and Lyft.
Taxi Fares
Ride-sharing services are widely available and often more affordable than traditional taxis, especially for longer trips. These services offer the added convenience of app-based booking and payment.
Healthcare
Healthcare costs in Philadelphia are slightly lower than the national average, by about 3%. Here are some typical healthcare expenses:
Childcare
Childcare is a significant expense for families living in Philadelphia. The average monthly cost of full-day private preschool or kindergarten is about $1,475. However, the city offers programs to subsidize childcare costs for eligible families, making it more affordable for some residents.
Entertainment and Dining
Philadelphia offers a rich array of dining and entertainment options. The cost of dining out can vary widely, but on average:
For entertainment, residents can expect to pay:
Comparison to Other Major Cities
When compared to other major cities in the United States, Philadelphia's cost of living is relatively moderate. For example:
Taxes
Another important consideration is the tax burden. Philadelphia has a combined sales tax rate of 8%, which includes a 6% state tax and an additional 2% city tax. Pennsylvania’s flat income tax rate is 3.07%, one of the lowest in the country.
Conclusion
Philadelphia offers a unique blend of historical significance, cultural richness, and modern amenities. While the cost of living is higher than the national average, it remains more affordable than many other major cities in the United States. Housing costs, although increasing, are still relatively reasonable compared to places like New York or Los Angeles. Utility and grocery expenses are higher, but healthcare costs are slightly lower, providing some balance.
For those considering a move to Philadelphia, it is essential to factor in these costs and compare them to your current expenses and salary. Whether you are drawn by the city's history, diverse neighborhoods, or professional opportunities, understanding the financial landscape will help you make an informed decision about making Philadelphia your new home. Contact New Age Realty Group to help you find your next home or apartment!
New Age Realty Group, Inc. is a full-service property management company and brokerage located in West Philadelphia.
Since 1986, our focus has been to help people navigate the world of real estate. We manage over 1,000 units and have a large database of Philadelphia investors.
We are located in University City and licensed for all of PA. As one of the top real estate agencies in Philadelphia, we are here to help you with all your real estate needs!
