Cost of Living

An affordable cost of living makes it easier to attract good people and retain them when your company is located in that area. Employees’ paychecks will stretch farther in Norfolk than in many other parts of the country. As a result, you can offer wages that are competitive, but hold down labor costs compared to other parts of the country, making your company more competive on a global scale.

 

ResidPhotoforcalculator

Hampton Roads Cost of Living: (1st Qtr. 2010)
Composite Index
 112.6
Groceries
 102.1
Housing
 123.0
Utilities
 109.4
Transportation
 100.3
Health Care
 112.5
Miscellaneous 113.2
National average
 100
Here’s how the Hampton Roads MSA compares to other MSAs


Composite Index

Food Items

Housing

Health Care

Jacksonville, FL

91.3

102.0

76.8

101.2

Detroit, MI

102.6

91.7

99.6

102.9

Miama, FL

104.7

109.1

104.3

108.3

Richmond, VA

106.0

106.9

102.2

102.4

Norfolk, VA

112.6

102.1

123.0

100.3

Chicago, IL

118.3

113.2

134.3

119.7

Baltimore, MD

119.1

108.9

156.3

105.5

Philadelphia, PA

126.5

127.2

141.1

104.2

Newark, NJ

128.8

116.1

166.1

103.8

Los Angeles

136.2

105.0

206.7

115.6

Washington, DC

137.9

109.5

219.1

109.2

San Francisco, CA

162.1

115.9

273.9

108.8

New York City, NY

218.0

161.0

388.9

119.9

Source: Council for Community and Economic Research, Cost of Living Index May 2010

HOW TO USE THE ACCRA COST OF LIVING INDEX
Assume that City A has a composite index of 98.3 and City B has a composite index of 128.5. If you live in City A and are contemplating a job offer in City B, how much of an increase in your after-taxes income is needed to maintain your present lifestyle?

100*[(City B – City A)/City A] = 100*[(128.5-98.3)/98.3] = 100*(.3072) = 30.72%, or about a 31% increase

Conversely, if you are considering a move from City B to City A, how much of a cut in after-taxes income can you sustain without reducing your present lifestyle?

100*[(City A – City B)/City b] = 100*[(98.3 – 128.5)/128.5] = 100*(-.2350) = -23.5%, or about a 24% reduction