Philadelphia vs Raleigh: cost of living compared
Raleigh is 11% cheaper than Philadelphia overall. State income tax tops out around 3.07% in PA vs 4.5% in NC.
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
Comparing the overall cost of living, Raleigh generally aligns with the national average, while Philadelphia is noticeably more expensive. This difference is largely driven by Philadelphia's higher costs across several categories, particularly transportation and some everyday expenses. While housing costs in Philadelphia are below the national average, Raleigh's housing is somewhat above, creating a nuanced picture where other spending categories significantly influence the overall budget.
Housing
When considering housing, Philadelphia's median home price is considerably lower than Raleigh's, though its median rent for a one-bedroom is slightly higher. Philadelphia's housing stock often includes older, denser urban structures like row homes, while Raleigh tends to offer newer, more suburban detached homes. Property taxes and insurance costs can vary, but the initial purchase price presents a notable difference between the two metros.
Taxes and everyday costs
Daily expenses show a clear divergence. Raleigh offers noticeably lower costs for food, healthcare, utilities, and miscellaneous goods and services compared to Philadelphia. Transportation costs are also considerably higher in Philadelphia, which often relies on a robust public transit system alongside driving. State income tax is higher in Raleigh, which could impact take-home pay, but this is often offset by lower spending in other categories.
Lifestyle trade-offs
Beyond costs, a move between these cities means a shift in lifestyle. Philadelphia offers a dense, historic urban environment with four distinct seasons and a comprehensive public transportation network. Raleigh, in contrast, provides a more suburban feel with a warmer climate, less reliance on public transit, and a generally slower pace. Weather risks like winter storms are more common in Philadelphia, while Raleigh can experience hurricane impacts.
Bottom line
For a household budget, moving from Philadelphia to Raleigh generally means a reduction in overall spending, primarily due to lower everyday costs across multiple categories. While Raleigh's home prices are higher, its lower expenses for food, healthcare, and utilities can offer significant savings. The trade-off includes a higher state income tax in Raleigh and a different urban versus suburban experience, alongside varied transportation dynamics.
| Measure | Philadelphia, PA | Raleigh, NC |
|---|---|---|
| Overall cost of living (US avg = 100) | 112 | 100 |
| Housing index | 91 | 106 |
| Transportation index | 120 | 97 |
| Food index | 105 | 95 |
| Healthcare index | 108 | 95 |
| Utilities index | 105 | 98 |
| Misc index | 102 | 90 |
| Median home price | $298,000 | $388,000 |
| Median 1-bedroom rent | $1,550/mo | $1,500/mo |
| Average commute | 34 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.