Memphis vs Richmond: cost of living compared
Richmond is 22% more expensive than Memphis overall. Memphis (TN) has no state income tax; VA tops out around 5.75%.
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 Richmond presents a noticeable shift in overall expenses. Memphis offers a considerably lower cost of living, driven primarily by its housing market. While both cities are more affordable than the national average, the difference between them is substantial. All major spending categories, from daily necessities to miscellaneous costs, are more budget-friendly in Memphis, making it a more economical choice overall.
Housing
Housing costs are the most significant differentiator between these two metros. Both buying a home and renting an apartment are substantially more affordable in Memphis compared to Richmond. The median home price in Memphis is considerably lower, and one-bedroom rents follow a similar pattern. While both cities offer a mix of housing types, from historic homes to newer developments, the financial commitment for shelter is much greater in Richmond.
Taxes and everyday costs
Daily expenses for transportation, groceries, healthcare, and utilities are all lower in Memphis. Additionally, Tennessee does not have a state income tax on wages, which is a key difference from Virginia's income tax structure. This means that after-tax income can stretch further in Memphis for routine spending. While transportation costs are somewhat similar, the cumulative effect of these lower everyday expenses contributes to a more affordable lifestyle in Memphis.
Lifestyle trade-offs
Beyond costs, a move between these cities involves other considerations. Memphis, situated on the Mississippi River, experiences a humid subtropical climate with hot summers and mild winters, and is known for its flat terrain. Richmond, further north, also has a humid subtropical climate but can experience more distinct seasonal changes. Both cities are car-dependent, with average commute times being roughly similar, though Richmond's urban core can feel more densely populated.
Bottom line
For households prioritizing financial savings, Memphis generally offers a much more affordable cost of living across the board, particularly in housing. While Richmond provides a slightly different urban experience and climate, the financial impact of moving from Memphis to Richmond would mean a noticeable increase in monthly expenses. Conversely, a move to Memphis would likely free up a significant portion of a household's budget, especially considering the absence of state income tax.
| Measure | Memphis, TN | Richmond, VA |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 95 |
| Housing index | 54 | 90 |
| Transportation index | 88 | 93 |
| Food index | 85 | 95 |
| Healthcare index | 88 | 95 |
| Utilities index | 92 | 98 |
| Misc index | 78 | 88 |
| Median home price | $178,000 | $318,000 |
| Median 1-bedroom rent | $900/mo | $1,350/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 Richmond home with the True Cost Calculator.