What’s the cost of living in Connecticut?

Are you considering a move to Connecticut? Understanding the cost of living in the state is essential for effective financial planning. Here, we'll delve into the current statistics surrounding the cost of living in Connecticut. 

The average cost of living in Connecticut 

Connecticut's cost of living tends to be higher than the national average, with studies putting it anywhere between 17% and 25% higher than the rest of the United States. 

Housing costs in Connecticut 

Housing costs in Connecticut are generally higher compared to the national median. As of March 2023, the average home value in Connecticut is estimated to be around $359,000, according to reputable real estate company Zillow.  

However, it's important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:

For those considering renting in Connecticut, monthly rental prices for a two-bedroom apartment come in at around $2,300. 

In addition, understanding these costs in relation to the average salary in Connecticut is crucial for realistic budgeting.

Utility costs in Connecticut 

Utility costs play a significant role in Connecticut's overall cost of living. According to the U.S. Energy Information Administration, Connecticut's average monthly utility bill is around $175. As a result, Connecticut’s utilities are slightly higher than other states. According to Forbes, the average monthly cost is around $533.

Grocery and food costs in Connecticut 

When it comes to groceries and food costs, Connecticut generally aligns with prices found elsewhere in the United States.   

According to Zippia, those in Bridgeport pay over $343 on average each month.   

According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.   

Transportation costs in Connecticut 

Transportation costs, including gas prices and vehicle maintenance, impact Connecticut's overall cost of living.  

Gas prices in Connecticut typically stay close to the national average. However, these prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

Healthcare costs in Connecticut 

Understanding healthcare expenses is crucial when considering the cost of living.  

The specific healthcare costs in Connecticut can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

MIT estimates: 

Childcare costs in Connecticut 

Childcare costs in Connecticut are relatively affordable compared to the national average. Families in Connecticut currently pay around $10,088 per year for childcare for one child. This figure doubles for two children.   

However, it's important to note that this figure can vary across the state.  

Taxation in Connecticut 

Connecticut state income tax rates range from 3% to 6.99%. The state sales tax rate is 6.35%, similar to the national average.  

Here's a comparison of income tax rates among some neighboring states:  

It's important to note that Connecticut also has property taxes, which vary based on the assessed value of the property and the local tax rates. 

The bottom line

Connecticut offers a higher cost of living compared to the national average. Housing costs, in particular, tend to be higher. However, the state boasts a high standard of living, excellent educational institutions, and a strong economy.  

It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Connecticut. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning. 

Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.