What’s the cost of living in Louisiana?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Louisiana is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Louisiana
Louisiana is home to approximately 4.6 million people with the cost of living on the lower end of the scale compared to the rest of the US.
According to research, the average cost of living is around 8% lower than the national average.
While according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 18th in a list of states with the lowest to the highest cost of living.
Housing costs in Louisiana
As of March 2023, the average home value in Louisiana is estimated to be around $182,959, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Louisiana (Zillow Data):
New Orleans: $264,489
Baton Rouge: $206,349
The monthly rental price ranges across the state for those considering renting in Louisiana. In New Orleans, for example, the average rent price is $1,333, with prices across the state going as high as $11,000.
Utility costs in Louisiana
Utility costs play a significant role in Louisiana's overall cost of living. According to Forbes, the average monthly cost is around $389.
Average Monthly Utility Costs in Louisiana:
Energy bill: $131.37
Phone bill: $114
Natural gas: $55
Monthly water bill: $21
Grocery and food costs in Louisiana
When it comes to groceries and food costs, Louisiana generally aligns with prices found elsewhere in the United States.
According to Zippia, those in New Orleans pay over $325 on average each month. This is one of the lowest grocery bills in the country.
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 Louisiana
Transportation costs, including gas prices and vehicle maintenance, impact Louisiana's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,400.
Gas prices in Louisiana are typically in and around the national average. At the time of writing, Louisiana was just below the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Louisiana
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Louisiana 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.
Annual Healthcare Expenditure in Louisiana Estimated by MIT:
One adult, no children: $3,274
One adult, one child: $9,590
One adult, two children: $9,600
Two adults (one working), no children: $7,459
Two adults (one working), one child: $9,600
Two adults (one working), two children: $9,525
Two adults (two working), no children: $7,459
Two adults (two working), one child: $9,600
Two adults (two working), two children: $9,525
Childcare costs in Louisiana
Families in Louisiana currently pay around $7,559 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 Louisiana
Louisiana’s state income tax rates follow a progressive tax structure. They range between 2% and 6%.
Taxes in Louisiana compared to neighboring states:
Louisiana income tax rates: 2% - 6% (progressive tax rates)
Arkansas income tax rates: 0.9% - 6.9% (progressive tax rates)
Mississippi income tax rates: 3% - 5% (progressive tax rates)
Texas: No state income tax
Oklahoma income tax rates: 0.5% - 5% (progressive tax rates)
The sales tax rate in Louisiana is 4.45%. However, it's important to note that local parishes (counties) in Louisiana can also impose additional sales taxes, which can vary. As a result, Louisiana's combined state and local sales tax rates can range from 4.45% to 11.45%.
The bottom line
The amount of money needed to live comfortably in Louisiana can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Louisiana. 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.
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.