Memphis vs New Orleans: cost of living compared
New Orleans is 18% more expensive than Memphis overall. Memphis (TN) has no state income tax; LA tops out around 4.25%.
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
Moving between Memphis and New Orleans presents a notable difference in overall cost of living. Memphis stands out as significantly more affordable, primarily driven by its much lower housing expenses. While other categories like food and transportation also show Memphis as less expensive, the substantial gap in housing costs is the biggest factor contributing to the overall difference. New Orleans, though still below the national average, is a more expensive place to live.
Housing
Housing costs are considerably lower in Memphis, whether you're looking to buy or rent. Median home prices are much more accessible in Memphis, and monthly rents for a one-bedroom apartment are also noticeably less. Both cities feature a mix of historic and newer housing styles, but the financial commitment for a home or rental property will be substantially higher in New Orleans. Property taxes and insurance costs can also vary between the two states.
Taxes and everyday costs
Daily expenses generally favor Memphis. Beyond housing, groceries are cheaper, and transportation costs are slightly lower. A key difference is state income tax; Tennessee has no broad state income tax, while Louisiana does. Utilities are a bit higher in New Orleans, especially considering the climate. Healthcare costs are also more affordable in Memphis, making everyday spending notably less burdensome there.
Lifestyle trade-offs
Both cities offer a rich cultural experience in the South, but with distinct flavors. Memphis has a slightly faster average commute time, while New Orleans' commute is roughly similar. New Orleans is known for its humid, subtropical climate and unique urban density, often with a slower pace of life. Memphis also experiences a humid climate but generally has a more spread-out feel. Both metros are susceptible to severe weather events, including heavy rain and potential flooding.
Bottom line
For those prioritizing budget, a move to Memphis offers a clear financial advantage over New Orleans. The most significant savings will be found in housing, but nearly all major spending categories, including food, transportation, and healthcare, are more affordable in Memphis. The absence of a state income tax in Tennessee further contributes to a lower overall financial outlay, making Memphis a more budget-friendly option for households.
| Measure | Memphis, TN | New Orleans, LA |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 92 |
| Housing index | 54 | 74 |
| Transportation index | 88 | 93 |
| Food index | 85 | 95 |
| Healthcare index | 88 | 92 |
| Utilities index | 92 | 108 |
| Misc index | 78 | 88 |
| Median home price | $178,000 | $248,000 |
| Median 1-bedroom rent | $900/mo | $1,200/mo |
| Average commute | 25 min | 26 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific New Orleans home with the True Cost Calculator.