What is a Good Salary to Live Comfortably in Raleigh, NC?

If you're thinking about living in Raleigh and want to know how much you need to earn for a comfortable life, here's what you should know about the city's cost of living and average salary.

Ranked as the #1 city with the best quality of life in the United States and the second-best in the world, Raleigh is an excellent place to relocate to for many reasons. You will undoubtedly love to call this place your home due to its thriving job market, endless job opportunities, and excellent education. No matter what sector you choose, there will be something for everyone.

Raleigh is part of the Raleigh-Cary metro area, which is ranked 105 out of 273 cities across the United States in terms of the cost of living. According to the Council for Community and Economic Research, the cost of living in Raleigh is estimated to be 97.9% of the national average, making it an average United States city. 

Raleigh has many pros and cons, and as this area is rapidly expanding, more job opportunities, restaurants, schools, and prime real estate are emerging in and around these localities. Whether you are moving to find your dream home, for an excellent education, for a job, or to retire, this city has something to offer everyone. 

When you are moving somewhere new, ensuring that it fits your needs, especially the cost of living, is essential. Understanding what you need to live comfortably in an area is a great thing to look at to decipher whether you can afford it or not. Thankfully, Raleigh's cost of living is lower than the national average. 

If you're deciding to move to this booming city with many fun, kid-friendly things to do, it's important to consider the cost of living, average income needed, and real estate prices. Keep reading to learn more.

Here's what you need to earn to live comfortably in Raleigh, NC.

1. Average Income in Raleigh

Raleigh, located in the Research Triangle, is known for its high-tech and research jobs. It is also home to the University of North Carolina State, which provides many employment opportunities in the education sector.

According to a CNBC and SmartAsset study, a single adult needs an average salary of about $102,752 to live comfortably in Raleigh. This makes Raleigh the 23rd highest salary required to live comfortably. This estimate, sadly, is more than double what an average resident in Raliegh makes. 

Unfortunately, living comfortably does not always have to be able to pay bills, but being able to support yourself and be able to pay off everything while having some to save. Living comfortably can be by the 50/30/20 budget; 50% of your paycheck goes toward essentials, 30% goes to things you want, and 20% goes toward savings and investments. 

However, The Wall Street Journal recently ranked Raleigh as the fifth hottest job market in the United States. With a median household income of $78,631, Raleigh is also one of the most affordable places to live in the country.

According to the U.S. Bureau of Labor Statistics (BLS), the unemployment rate for individuals aged 16 and above in Raleigh is 3.3%. The city has made significant progress in recovering from the impact of the COVID-19 pandemic in 2020.

The job market in Raleigh is expected to grow exponentially, which is great news for job seekers. However, it is important to note that the poverty rate in Raleigh is 12.1%, slightly higher than the national poverty rate of 11.6%. Furthermore, the minimum wage in Raleigh is the same as the national average at $7.25 per hour.

2. Cost of Living in Raleigh

The cost of living in Raleigh, NC, is 4% lower than the national average. However, it's important to note that the cost of living can vary depending on several factors, such as your profession, personal preferences, average salary, and the real estate market.

To be more specific, housing expenses in Raleigh are 2% lower than the national average, while utilities are 2% higher. Groceries in Raleigh are 8% lower, and transportation costs are 5% lower. It's worth noting that these statistics may not exactly reflect how much you would spend in Raleigh, but they provide a good idea of the cost of living in the city.

The average annual income of a resident in Raleigh is $42,632, which is 12.4% higher than the national median of $37,638. Raleigh is a constantly developing city with new residential areas and job opportunities popping up frequently. However, being a highly desirable place to live in North Carolina, the cost of living is higher than that of other cities and towns in the state.

Here are some categories broken down of the cost of living according to Payscale.

3. Real Estate Cost in Raleigh

Housing expenses in Raleigh are slightly lower than the national average, but the actual cost depends on several factors, such as location, neighborhood, housing type, size, and more. On average, the price of a home in Raleigh is around $427,000, which is slightly higher than the national average.

The Raleigh area's position as a hub for technology, education, and research will drive significant economic and population growth through 2024. As a result, there will be a high demand for housing, although the total number of homes available in March 2024 was 22% lower compared to last year.

Currently, the housing market in Raleigh is favorable for sellers as more buyers are looking to purchase homes than there are homes available. Although many homes are still available, the prices may be higher, and they tend to sell quickly.

As of March 2024, the prices of homes in Raleigh have increased by 5.1% compared to the previous year. On average, homes sell within 16 days of being on the market, so if you want a home in one of Raleigh's best neighborhoods, you need to act fast.

The choices for investing in real estate in Raleigh are abundant, whether you decide to rent or buy. However, if you are looking for cheaper or short-term living, the average rental price in Raleigh is $1,237 per month. This is slightly higher than the national average but still much more affordable than other major cities.

4. Typical Annual Salaries

The average annual salaries for various occupations in the table below are from the Bureau of Labor Statistics Occupational Employment and Wage Estimates for Raleigh, NC. 

More than 24,000 new job openings are available for you to consider. Additionally, this city offers one of the country's best base salary to median home value ratios. Moreover, the job satisfaction rating in this city is 3.3, making it a great place for anyone looking to start or continue their career.

5. Raleigh's Economy 

Raleigh is one of the top 10 cities for economic development in the US. With solid job and wage growth, the city remains one of the most affordable housing markets compared to other surrounding cities. The future outlook on Raleigh remains positive, while the area is expected to have an increase in population as well. 

Business is booming in Raleigh, and numerous companies are moving from other parts of the country into the area. Wake County's most prominent industries - government, education, and healthcare are some of the top reasons why the economy is booming.

Raleigh is an excellent city in which to both work and live. There are countless opportunities and services available for everyone. If you're planning to move to Raleigh and are interested in starting a new business or finding emerging ones, this city is the perfect place to explore.

Whether you are searching for employment options or starting up a new business, employment in Raleigh is available at high-tech entrepreneurial companies, major corporations, and a vast array of small and mid-sized companies. The Research Triangle is one of the top locations if you are searching for a thriving job market. 

Five key industries represent 75% of the area's economy based on the Economic Development and Raleigh Chamber. Below are the top industries.

• Professional and Business Services - 19.1% with 127,319 employees
  • Accounting and Law Firms to Banks and Marketing Agencies
• Trade, Transportation, and Utilities - 17.3% with 115,884 employees
  • Walmart, Food Lion, and Target are the largest retailers in the region
• Education and Health Services - 16.8% with 112,491 employees
  • Duke University and Duke Health Systems, as well as the Wake County Public School System and UNC, take a share of this sector
• Government - 13% with 89,691 employees
  • Federal, state, and local employees across Wake County 
• Leisure and Hospitality - 9.1% with 60,770 employees
  • Luihn Food Systems, Concord Hospitality Enterprises, and PNC Arena are the largest employers

Small businesses are the heart and soul of Raleigh. They serve as an ally for small, minority businesses throughout the community. If you are interested in this, check out the small business resource guide to help you out. 

Here are some facts about Raleigh's economy:

• Sales tax rate of 7.3%
• Income tax rate of 5.5%
• Average income for a resident is $31,169 a year
• Median household income of resident is $72,996
• Research Triangle Park is one of the leading centers for high-technology research and development in the country

Methodology

We used information from different sources and our data to create this guide about a good salary to live comfortably in Raleigh. There were various data to use, so we put them together to help you understand the cost of the Raleigh area. 

• The Council for Community and Economic Research
• WRAL News
• U.S. Bureau of Labor Statistics (BLS)
• Bureau of Labor Statistics Occupational Employment and Wage Estimates
• Economic Development and Raleigh Chamber

Above are a few sources we used to gather most of our information about what a good salary is to live comfortably in Raleigh. 

FAQS

How much do I need to make to live comfortably in Raleigh, NC?

Many factors go into what salary you need to live comfortably in Raleigh. Depending on your personal preferences, a single adult needs an average salary of about $102,752 to live comfortably in Raleigh. However, the average income here is $42,632.

What is the cost of living in Raleigh, NC?

The cost of living in Raleigh is considered to be relatively affordable, with a score of 203, which is only 3% higher than the national average. Housing costs are rising as the market grows, but homes are more affordable here than in other similar-sized metropolitan areas. 

Why is Raleigh booming?

One of the main reasons that influenced the area's growth was the job market offered by schools and local corporations. The search also showed that university students are choosing to lay permanent roots in the area after graduating due to the high volume of opportunities. 

What is a Good Salary to Live Comfortably in Raleigh, NC? - The Bottom Line

Living comfortably means paying your bills, supporting yourself, and having some savings. The 50/30/20 budgeting rule is an excellent way to achieve this. It suggests allocating 50% of your paycheck to essentials, 30% to things you want, and 20% to savings and investments.

A single adult in Raleigh needs an average salary of $102,752 to live comfortably. This amount is more than double the average salary earned by residents in Raleigh. Unfortunately, this means that many people in Raleigh need help to afford a comfortable lifestyle.

However, when moving somewhere new, everyone is different and has various wants/needs. So, depending on your personal preferences, Raleigh may be the perfect fit for you. Keep in mind that these numbers are based on averages and studies so that they may differ for each person. 

When moving to a new place, it's crucial to ensure that the place meets your needs, especially the cost of living. Understanding the cost of living in an area is an excellent way to determine whether you can afford it or not.

If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.