Dallas vs Raleigh: cost of living compared
Raleigh is 5% cheaper than Dallas overall. Dallas (TX) has no state income tax; NC tops out around 4.5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Overall, Raleigh presents a cost of living that aligns closely with the national average, while Dallas is slightly higher. The primary driver of this difference is housing, which is more expensive in Raleigh. However, other daily expenses like transportation, food, and miscellaneous goods and services tend to be more affordable in Raleigh, helping to balance the overall budget despite the housing premium.
Housing
Housing costs, both for purchasing and renting, are generally more favorable in Dallas. Median home prices are lower there, and a typical one-bedroom rental also costs less. Raleigh's housing market is somewhat pricier. Both metros offer a mix of housing types, from suburban developments to urban residences. Property taxes and insurance costs will vary, impacting the total cost of homeownership in either location.
Taxes and everyday costs
A significant difference in daily spending comes from state income tax, which is absent in Texas but applies in North Carolina. Beyond that, Raleigh offers more affordable transportation, food, healthcare, and miscellaneous goods and services compared to Dallas. Utilities, however, are somewhat cheaper in Raleigh. These factors mean that everyday expenses, excluding housing, generally lean towards being more budget-friendly in Raleigh.
Lifestyle trade-offs
Dallas, a large metropolitan hub, offers a generally faster pace and a more extensive, car-dependent transportation network, with a longer average commute. Its climate features hot summers and mild winters, with occasional severe weather. Raleigh, a growing capital city, tends to have a slightly more relaxed pace, with a shorter average commute and a temperate climate, experiencing all four seasons. Both offer access to diverse cultural and recreational amenities.
Bottom line
For those prioritizing lower housing costs, Dallas generally offers a more affordable entry point for both buying and renting. However, Raleigh presents savings on many everyday expenses, including transportation, food, and healthcare, alongside the impact of state income tax. The decision hinges on whether the housing savings in Dallas outweigh the cumulative daily savings and absence of state income tax in Raleigh, or vice versa, depending on individual spending habits.
| Measure | Dallas, TX | Raleigh, NC |
|---|---|---|
| Overall cost of living (US avg = 100) | 105 | 100 |
| Housing index | 99 | 106 |
| Transportation index | 104 | 97 |
| Food index | 98 | 95 |
| Healthcare index | 102 | 95 |
| Utilities index | 105 | 98 |
| Misc index | 98 | 90 |
| Median home price | $358,000 | $388,000 |
| Median 1-bedroom rent | $1,450/mo | $1,500/mo |
| Average commute | 29 min | 27 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Raleigh home with the True Cost Calculator.