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Greater Richmond ~7 percent more affordable than U.S. average
September 23, 2024
Despite rising costs across the nation, Greater Richmond remains an affordable location. With a Cost of Living Index of 93.4 in Q2 of 2024, Greater Richmond is nearly 7 percent more affordable than the U.S. average of 100. The Cost of Living Index calculated by the Council for Community and Economic Research (C2ER) measures the costs of groceries, housing, utilities, transportation, health care as well as miscellaneous goods and services.
While inflating prices impact the nation as a whole, Greater Richmond costs are rising at a slower rate than in other metro areas leading the region’s Cost of Living Indexes to decline. To compare, in Q2 of 2022 Greater Richmond’s overall cost of living index was 97.1. The nearly four point drop in indexes between 2022 and 2024 proves Greater Richmond is more affordable than the U.S. average as well as other metros where indexes are rising.
| Richmond MSA Cost of Living | |||
| 2022 Q2 | 2024 Q2 | 2-year difference | |
| Grocery | 95.3 | 100.2 | + 5.1% |
| Housing | 89.2 | 81.8 | – 8.3% |
| Utilities | 104.5 | 97.0 | – 7.2% |
| Transportation | 97.8 | 93.6 | – 4.3% |
| Health Care | 103.2 | 90.4 | – 12.4% |
| Misc. Goods + Services | 102.6 | 99.5 | – 3.1% |
| Composite Index | 97.1 | 93.4 | – 3.8% |
Shrinking indexes across the board
While the region’s grocery index increased, Greater Richmond’s housing index is 81.8 in Q2 of 2024, down nearly 9 percent compared to 89.2 in Q2 of 2022. The region’s utilities index decreased by more than 7 percent, transportation index by more than 4 percent and health care index by more than 13 percent.
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Greater Richmond’s affordable advantages
As costs around the nation rise, and in some areas, skyrocket, people seek affordable locations to enhance their quality of life. In Virginia, Greater Richmond is the #1 community driving the commonwealth’s population growth according to U.S. Census data. Furthermore, the region is the #15 fastest growing community in the nation by percentage.
Residents choose to locate in Greater Richmond for its affordability, but many are also drawn to the region for its outdoor recreation, arts and culture, award winning higher education institutions and more.
Learn more about living in Greater Richmond.
- Topics:
- Quality of Life
