As the effects of inflation continue to affect everything from grocery shopping to home buying, it’s smart to consider how an increased cost of living could impact the choice of where you move – especially if you’re considering buying a home. This dynamic is present across the country, but if you’re thinking of relocating to the Washington, D.C. area, there are a few specific impacts to keep an eye on.
D.C. Cost of Living Increase 2022
As the nation’s capitol, D.C. is an attractive place to move: with abundant jobs (especially in the public sector), ample cultural destinations and a growing food scene, the city is a natural addition to any list of cities worth moving to.
From a housing perspective, D.C. is interesting because its metro area spans both Virginia and Maryland. While this does bode well for housing availability, according to Business Insider, the median home value has continued to increase year-over-year while some markets are beginning to cool off: the typical price in the area is $703,506.
As the biggest expenditure on your budget sheet, the value of your mortgage is perhaps the most important when considering a move. That said, consumer prices are also a key component of what your cost of living will look like, and they’re up 5.6 percent from a year ago in Washington, D.C., according to the Bureau of Labor statistics. This increase is specifically driven by food prices, which are likely to make grocery shopping and dining out more expensive.
While still a major city on the national stage, Chicago’s median house cost still falls almost $100K below D.C.’s, coming in at $613,525 according to Payscale. It’s a common perception that larger cities are more expensive – and that can be true – but Chicago’s consumer prices are pretty on-par with those of the capitol.
If you’re debating relocating, the Luxury Living team would love to work through the impacts of inflation on local markets with you. Reach out to us today to start your search.
To learn more about the effects of inflation by U.S. city in 2023, follow the link below!
