The cost of living index is based on a U.S. average of 100. On this scale, the cost of living in Maryland is 111.8, meaning it is about 11.8% more expensive to live in Maryland than in the U.S. overall.
Maryland cost of living breakdown
If you’re considering a move to Maryland but you’re not sure about the cost of living, take a look at this breakdown.
The cost of housing in Maryland
According to Sperling’s Best Places, the cost of housing in Maryland is about 24% higher than the national average for both renting and buying. The median Maryland home value is $406,314 according to Zillow, which is around $49,000 (or 14%) higher than the U.S. median home value of $357,544. Prices in the state have increased 7.3% year-over-year, though the real estate market is now cooling.
Major MD cities have higher costs of living than rural areas in the state. For example, Bethesda’s cost of living index is 187.8, and the cost of housing is a stunning 260% higher than the national average. The upside? Salaries here are higher too. The median annual household income in this city is $178,370 compared to a U.S. median of $70,784—so you’ll spend more, but you’ll also make more.
As a general rule, you shouldn’t spend more than 33% of your monthly income on housing. The median Maryland salary is $91,431, while the average monthly mortgage payment is around $2,015. This breaks down to about a 26% expenditure on housing each month—well within the recommended limits.
Looking for your own place in Maryland?
Groceries, utilities, and other costs
While the cost of housing is high in Maryland, the costs of groceries and utilities are closer to the national average. Both categories come in at about 5% higher than the U.S. overall, and the cost of healthcare is even lower at just 84% of the national cost. You can expect to spend about 19% more on transportation here than in other parts of the U.S.
In Bethesda, groceries will run you about 13% more than they will in other parts of Maryland, and utilities just 4% more. Healthcare stays more affordable here, at just 2.6% higher than the state average, and transportation is about 10% higher than in Maryland overall.
Ready to make your move?
If high salaries, high home values, and a high quality of life sound good to you, start looking for your new home in Maryland. Our team specializes in helping you conquer your impossible—including buying your dream home when costs are high. We’ll strategize with you to make your purchase affordable and make sure you get exactly what you’re looking for. Get in touch to get started.
When you're ready to make your move to Maryland, give us a call at 301-781-6474 to find out how we can help.