What is the Cost of Living in North Carolina? [2025]

North Carolina Cost of Living

Is North Carolina an expensive place to live? Let's explore the cost of living in North Carolina, the average household income, and typical expenses. 

Do you want to live somewhere with all four seasons, a thriving job market, and an affordable cost of living? Then look no further than the beautiful state of North Carolina. 

Attracting new residents daily, North Carolina offers Southern charm, diverse geography, and economic opportunity for young professionals, families, and retirees. 

As the ninth most populous state in the country, North Carolina's healthy growth, beautiful real estate, and employment opportunities are among the many reasons people choose to call it home. 

Whether you're considering relocating from across the country or moving within the state, understanding the actual cost of living is essential for making informed decisions about your future home.

Here is what you need to know about the cost of living in NC 

1. Cost of Living in North Carolina

North Carolina is relatively affordable, especially for people moving from the northern or western part of the United States. According to US News and World Report, North Carolina ranks #23 overall on the list of the most affordable states. 

With a cost of living similar to the national average, North Carolina residents spend no more or less than they would in any other state. Offering a compelling value proposition for prospective residents, North Carolina features some notable advantages that make your dollar stretch further. 

Housing costs run approximately 14% below the national average, while utilities are 2% lower than typical U.S. expenses. This combination creates meaningful savings for families and individuals seeking to maximize purchasing power.

To make ends meet, a family of two parents with two children must make about $8,100, or $97,500 per year in North Carolina. This living income standard will vary depending on family type and location within the state. 

Compared to the cost of living in South Carolina, North Carolina is slightly more expensive. However, North Carolina is a relatively affordable option that provides a thriving economy, world-class universities, and employment opportunities, specifically in the Research Triangle area. 

2. Real Estate

Investing in real estate in North Carolina is one of the best things you can do. The affordable homes and the growth in the state are just some of the main reasons people buy houses here. North Carolina has some fantastic places to live, all with unique qualities. 

Housing represents the largest component of most household budgets, and North Carolina delivers genuine affordability compared to many other states. Whether you are searching for new construction homes or homes in the triangle, you will not miss out on the endless opportunities.

As of January 2025, the median home value in North Carolina is $367,600, an increase of 3.8% from last year. This indicates a healthy, stable market rather than the volatile swings seen in some regions.

The statewide demand for homes makes it harder to find houses in some areas, so check out all available inventory in the locations that you are interested in moving to, as well as check in with your agent to help you out. 

What makes North Carolina particularly attractive is the diversity of housing options. The state accommodates virtually every lifestyle preference and budget range, from downtown condominiums in thriving city centers to spacious suburban homes with large lots.

For renters, the landscape varies significantly by location. Urban centers like Charlotte and Raleigh command higher rents, while smaller cities and rural areas offer more budget-friendly options. The rental market has shown resilience, with steady demand supporting consistent occupancy rates across most markets.

3. Income

North Carolina's economy is growing and has a thriving job market, one of the main reasons people choose to settle down here. This state has one of the country's healthiest economies and a highly educated and skilled labor workforce. 

Home to Research Triangle Park, North Carolina, attracts college students and young professionals. The thriving universities throughout the state, like Duke University, North Carolina State University, and University of North Carolina Chapel Hill, also attract many educated professionals. 

According to the United States Census Bureau, North Carolina's average individual median income is about $39,616, while the household median income is about $69,904. The middle class in North Carolina earns between $47,198 and $141,608 a year. 

According to the North Carolina Department of Commerce, North Carolina is projected to have over $628,000 job openings annually. Most of these job openings will be in office and administration support, sales, food preparation, transportation, and management.

The state's diverse economy offers opportunities across multiple sectors. Technology continues to grow rapidly in the Research Triangle, financial services thrive in Charlotte, manufacturing maintains a strong presence throughout the state, and tourism provides employment opportunities in mountain and coastal regions.

This economic diversity helps provide stability and growth opportunities for workers across various skill levels and career stages.

In-demand jobs in North Carolina are in the fields of:

• Computer and Mathematics 
• Healthcare
• Information Technology
• Food and Processing and Manufacturing
• Textiles

4. Utilities

Due to the weather change in North Carolina, you should prepare to spend a good amount on utilities. North Carolina has hot, humid, cold, snowy, and all-in-between weather, so you will either be using the AC frequently or dialing up the heat. 

North Carolina residents enjoy relatively affordable utility costs, running about 2% below national averages. The state's diverse energy portfolio, including nuclear, natural gas, coal, and growing renewable sources, helps maintain competitive rates.

Average monthly utility bills vary by home size, efficiency, and seasonal usage patterns, but most households find electricity, water, and gas costs manageable within their overall budgets.

5. Healthcare

North Carolina is known for its thriving healthcare system, which includes many medical and pharmaceutical companies. Due to this state's highly ranked healthcare system, healthcare costs are usually higher than the national average, about 4%. 

In North Carolina, the average person spends approximately $8,230 annually on healthcare costs. The state benefits from major medical centers, including Duke University Hospital, UNC Hospitals, and Wake Forest Baptist Medical Center, providing access to world-class care.

Most North Carolina residents obtain health insurance through employer-spo

nsored plans, followed by Medicaid, Medicare, and private insurance options. The presence of major medical institutions and a growing healthcare sector helps maintain competitive pricing while ensuring access to specialized care when needed.

Healthcare costs vary by region. Urban areas typically offer more options but potentially higher costs, while rural areas may have fewer providers but lower overall expenses. The state's continued investment in telehealth and rural healthcare initiatives helps bridge access gaps across communities.

6. Transportation

Transportation costs in North Carolina are 5% less than the national average, including gasoline, oil changes, and public transportation. 

Transportation costs in North Carolina depend heavily on where you live and work. Urban areas like Charlotte, Raleigh-Durham, and Asheville offer public transportation options that can reduce individual vehicle expenses.

Charlotte's LYNX light rail system and bus networks provide alternatives to driving, while the Research Triangle benefits from extensive bus systems and regional rail connections.

For most North Carolina residents, personal vehicles remain the primary transportation method. The state's relatively affordable gas prices, reasonable vehicle registration fees, and moderate insurance costs help keep transportation budgets manageable.

North Carolina's central East Coast location provides excellent access to major metropolitan areas, beaches, and mountains, making it an ideal business and leisure destination. 

The state's growing airport infrastructure, including Charlotte Douglas International Airport as a significant hub, provides competitive flight options for longer-distance travel.

7. Taxes

North Carolina is among only 14 states with a flat income tax rate. No matter your income, everyone will be taxed the same percentage. The state has been systematically reducing its income tax rates, with the current rate at 4.25% for 2025, down from 4.5% in 2024. This rate is scheduled to decrease further to 3.99% after 2025, with potential additional reductions planned through 2030.

The state does not tax Social Security benefits, making it particularly attractive for retirees. Property taxes vary by county but generally remain reasonable compared to many other states. Sales tax rates combine state and local components, with most areas seeing total rates between 6.75% and 7.5%.

North Carolina's tax structure particularly benefits middle-class families and retirees, as the state provides various deductions and credits that help reduce overall tax burdens.

The simplified tax code makes filing relatively straightforward, and the state's commitment to continued rate reductions signals ongoing improvements to the tax climate.

North Carolina ranks 12th on the state tax competitiveness index. Some goods, such as most non-prepared food items, food stamps, and medical supplies, are exempt from sales tax under the North Carolina law. 

Methodology

Data was sourced from the U.S. Census Bureau, NC Budget and Tax Center, the North Carolina Department of Commerce, Rent Cafe, and Tax Foundation to determine the cost of living in North Carolina. 

FAQS

Is it expensive to live in North Carolina?

North Carolina's living cost is comparable to the national average, meaning it is not too expensive or cheap to live in this southern state. 

What salary do you need to live comfortably in North Carolina?

While living wages vary throughout the state depending on the city and county, a family of four must make an average of $97,500 annually to live comfortably and make ends meet. 

How affordable is it in North Carolina to live?

While North Carolina is known to be a very affordable state, the overall cost of living in some parts is slightly higher than the national average. Housing is 14% lower, utilities are 2% lower, transportation is 5% lower, and healthcare is 4% higher than the national average. 

Are houses cheaper in North Carolina?

Housing in this state is considered to be very affordable, and this is a primary reason why many people are relocating here. The median sale price of a home in North Carolina as of January 2025 is $367,600. 

Cost of Living in North Carolina - The Bottom Line

When evaluating North Carolina as your new home, consider the whole picture rather than focusing solely on individual expense categories. While housing costs may be higher in desirable areas, savings in taxes, utilities, and overall living costs often more than compensate.

The state's diverse geography and economy mean you can find a community matching your lifestyle preferences and budget requirements. North Carolina's economic opportunity, natural beauty, reasonable costs, and improving tax environment create compelling reasons to call the Tar Heel State home.

Whether starting your career, raising a family, or planning for retirement, North Carolina offers communities and opportunities to help you achieve your goals while maintaining a comfortable lifestyle.

Healthy growth and a thriving job market are some of the reasons people relocate here for new job opportunities. There is no sign of this state slowing down, so if you are interested in a thriving community with so much to offer, North Carolina is for you. 

If you are ready to discover what life is like in North Carolina, contact our Real Estate Specialists at Raleigh Realty. We are here to help you find your dream home in this beloved southeastern state.