HCOL vs LCOL: The Financial Impact Pros & Cons

HCOL is an acronym for “High Cost Of Living,” and LCOL stands for “Low Cost Of Living.” Each place has its right to be a place you may want to choose to live in.

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.

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Housing in HCOL vs LCOL For 2019, the median income of California was $80,440. The median income in the state of Florida was $59,227.

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The median house price in California is $579,332, while the median house price in Florida is around $254,607. People in California make around 26% more than people in Florida, but their house price is about 56% more. It is no wonder why people would rather live in a different state than California.

Rental Rates for 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.

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Food prices in HCOL vs LCOL As we look at the prices of food, you have to wonder where you can save money. I spent a month living in Chicago. 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.

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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.

Education as a factor in HCOL vs LCOL It shows that the places with the HCOL areas in the U.S. tend to have better education and resources for their students and children.

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