HCOL vs LCOL: The Financial Impact Pros & Cons

Looking for places to live can be a daunting task. We need to weigh the pros and cons of each place. How do you pick an area? Here are the pros and cons of living in an HCOL vs LCOL area. HCOL is an acronym for “High Cost Of Living,” and LCOL stands for “Low Cost Of Living.” 

The Price Differences of HCOL vs LCOL

As we take a look at differences in price the HCOL areas have much higher prices than the LCOL. One common argument is that the income is much higher in these places.

People in California make around 26% more than people in Florida, but their house price is about 56% more.

They have several reasons why they like to buy a house. – No rent – Tax breaks – No landlord

Housing in HCOL vs LCOL

The average rent for a place in San Francisco is around $3,111. That is still a ton of money, but it allows people to save if they would like to buy a place to live.

Rental Rates for HCOL vs LCOL.

Food prices in HCOL vs LCOL

Living in Chicago, food was quite expensive to go out to eat. You are talking about $10-20 per meal, and maybe a tip as well. If you do that for lunch and dinner, that amount of money can really add up fast. It is always best to make your own food at home. 

The Transportation benefits of Living in HCOL area

Living in an HCOL gives the benefit of not needing a vehicle for your main transportation. Living in Chicago, you did not need a car. You could take the L train to where you needed to go.

The top 5 states in Education are: 1. Massachusets 2. New Jersey 3. New Hampshire 4. Vermont 5. Connecticut

Education as a factor in HCOL vs LCOL

Now we really need to see how the quality of life is affected in the HCOL vs LCOL. The stress of having to live in areas of HCOL can be too much for some people.

Quality of Life

Salaries may stay the same, but as the cost of food, rent, and utilities start to rise the amount of money you are able to save does not stay the same.

The Savings Rates of HCOL vs LCOL:

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