Memphis vs Raleigh: cost of living compared
Raleigh is 28% more expensive than Memphis overall. Memphis (TN) 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
Memphis offers a noticeably lower overall cost of living compared to Raleigh. The most significant factor contributing to this difference is housing, which is substantially more affordable in Memphis. While other spending categories like transportation, food, healthcare, and utilities are also generally higher in Raleigh, the gap is not as pronounced as it is for housing expenses. This makes Memphis a budget-friendly option for many.
Housing
Housing costs present a stark contrast between the two metros. Both buying a home and renting an apartment are considerably more expensive in Raleigh than in Memphis. Memphis typically features a mix of older, established homes and newer builds, often with more land for the price. Raleigh's housing market is more competitive, with higher property values. Property taxes and insurance costs will also reflect these underlying value differences.
Taxes and everyday costs
Daily expenses vary, with Raleigh generally costing more across the board. North Carolina has a state income tax, unlike Tennessee, which impacts take-home pay. Transportation costs are higher in Raleigh, as are expenses for groceries, healthcare services, and utilities. This means that routine spending on essentials will generally require a larger portion of your budget in Raleigh compared to Memphis.
Lifestyle trade-offs
Memphis experiences a humid subtropical climate, with hot summers and mild winters, and is located along a major river. Raleigh also has a humid subtropical climate, featuring warm summers and cooler winters, and is part of the Research Triangle region. Both metros rely heavily on personal vehicles for getting around, though Raleigh's commute times are slightly longer. Memphis has a historic feel, while Raleigh offers a more modern, growing urban landscape.
Bottom line
For those prioritizing a lower cost of living, Memphis presents a clear financial advantage, primarily driven by its much more affordable housing market. While Raleigh offers a robust job market and a slightly different lifestyle, it comes with a higher price tag across nearly all spending categories, including the impact of state income tax. Your budget will stretch considerably further for housing and daily necessities in Memphis.
| Measure | Memphis, TN | Raleigh, NC |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 100 |
| Housing index | 54 | 106 |
| Transportation index | 88 | 97 |
| Food index | 85 | 95 |
| Healthcare index | 88 | 95 |
| Utilities index | 92 | 98 |
| Misc index | 78 | 90 |
| Median home price | $178,000 | $388,000 |
| Median 1-bedroom rent | $900/mo | $1,500/mo |
| Average commute | 25 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.