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Richmond MSA Cost of Living shrinks to pre-pandemic levels; home prices $104k more affordable than U.S. average
February 14, 2024
RICHMOND, Va. (Feb. 14, 2024) – The Cost of Living Index in the Richmond MSA has decreased by more than one whole point since last year according to the Council for Community and Economic Research. The Richmond MSA’s Cost of Living Index for 2023 is 95.8, more than four points below the U.S. average, and down from 96.9 in 2022.
Cost of Living + Housing Indexes (2018 to 2023)
Housing costs in the Richmond MSA are well below the national average with savings upwards of $104,000. The Cost of Living Index measures the price of four bed/two bath homes that span 2,400 sq.ft on an 8,000 sq.ft. lot. These are detached single-family homes with a garage that are newly built and not previously occupied.
Home prices in the Richmond area have plateaued over the last year while the nation’s average home prices continue to skyrocket. While apartment prices in the Richmond MSA have increased slightly, they are not rising at the same rate as the U.S. average.
Compared to other metros in the mid-Atlantic on the East Coast, the Richmond MSA remains more affordable. In fact, Richmond is the most affordable option when pitted against Washington, D.C., Baltimore, Md., Charlotte, N.C. and Raleigh, N.C.
| Richmond, Va. MSA Index | Washington, D.C. MSA | Raleigh, N.C. MSA | Baltimore, Md. MSA | Charlotte, N.C. MSA | |
| $100K Annual Salary | 95.8 | Will go 51% further in Richmond | Will go 2% further in Richmond | Will go 5% further in Richmond | Will go 1% further in Richmond |
| Groceries | 100.5 | 5% less in Richmond | 2% more in Richmond | 4% less in Richmond | No difference |
| Housing | 83.8 | 154% less in Richmond | 12% less in Richmond | 9% less in Richmond | 4% less in Richmond |
| Avg. Apartment Rent | $1,380 | $3,359 | $1,701 | $1,866 | $1,484 |
| Avg. Home Price | $385,817 | $1,175,977 | $437,452 | $399,087 | $414,269 |
| Utilities | 104.8 | 6% less in Richmond | 7% more in Richmond | 6% less in Richmond | 16% more in Richmond |
| Transportation | 99.7 | 6% less in Richmond | 7% more in Richmond | 2% less in Richmond | 6% more in Richmond |
| Health care | 95.6 | 14% less in Richmond | 16% less in Richmond | 2% less in Richmond | 15% less in Richmond |
| Misc. (salon, vet, movies) | 100.3 | 16% less in Richmond | 1% more in Richmond | 3% less in Richmond | 2% less in Richmond |
While the Richmond MSA’s Cost of Living has decreased, its population has increased. The area’s influx of residents is likely in part thanks to the shrinking cost of living coupled with the region’s superior quality of life and abundance of economic opportunity.
New business announcements from ISO Group, SanMar Corporation, CEEUS and others are creating new job opportunities for residents. Along with our local partners, the Greater Richmond Partnership played a significant role in securing these projects for the region.
COST OF LIVING FLYER:
Download the Greater Richmond Partnership’s Cost of Living flyer to see how the region compares
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About GRP
The Greater Richmond Partnership, Inc. (GRP) is the lead regional economic development organization for the City of Richmond and counties of Chesterfield, Hanover and Henrico in Virginia. GRP attracts new companies to the region by providing in-depth market data, marketing the region globally and generating quality economic opportunities. For more information, visit www.grpva.com.
