Cost of Living
Companies located in an area with an affordable cost of living are better able to attract and retain skilled, talented employees. The lower cost of living in Norfolk will allow employees’ earnings to stretch farther than they would in many other parts of the country. This allows companies to offer wages that are still competitive due to Norfolk’s lower cost of living while also maintain labor costs that are lower than what they may be if the company were to locate in another part of the country. Living in the Hampton Roads region is cheaper than the national average overall and in terms of groceries, housing, transportation, and health care.
The Cost of Living Index is interpreted as follows. The national average is set as the base of comparison and is thus 100. Any value above 100 indicates the Cost of Living in the selected area is higher, meaning it is more expensive to live there. Any value below 100 indicates the Cost of Living in the selected area is lower, meaning it is cheaper to live there. In the table for the Norfolk, VA MSA Cost of Living, the Composite Index is 95.9, meaning it is less expensive to live in the Norfolk, VA MSA compared to the national average, or, it is 4.1% less expensive to live in the Norfolk, VA MSA compared to the national average.
Norfolk, VA MSA Cost of Living: 2019 Q3 – 2020 Q4 Index |
Category |
Index/National Average = 100.0 |
Composite Index |
95.9 |
Groceries |
96.7 |
Housing |
91.0 |
Transportation |
92.8 |
Health Care |
92.6 |
Source: The Council for Community and Economic Research, Cost of Living Index, 2019 Q3 – 2020 Q4 Index
The overall Cost of Living in the Norfolk, VA MSA is lower than the Cost of Living in many of its direct competitors, as noted in the accompanying table, making it a very attractive location for businesses.
MSA – Urban Area Noted |
Cost of Living – Composite Index |
Norfolk, VA |
95.9 |
Charlotte, NC |
98.0 |
Charleston, SC |
99.5 |
National Average |
100.0 |
Baltimore, MD |
110.4 |
Philadelphia, PA |
111.7 |
Miami, FL |
115.5 |
Newark, NJ |
123.1 |
Chicago, IL |
123.5 |
Washington, D.C. |
160.0 |
New York City, NY (Manhattan) |
245.7 |
Source: The Council for Community and Economic Research, Cost of Living Index, 2019 Q3 – 2020 Q4 Index
|
