Curious about the cost of living in Philadelphia? Is Philadelphia affordable? With its expansive parks and trails, esteemed universities, vibrant food scene, bustling breweries, and top-tier sports teams, Philadelphia has much to offer. Despite not always receiving the same attention as New York or Los Angeles, Philadelphia boasts a rich history, cultural significance, and diverse communities.
Today, we’re breaking down average expenses—covering accommodation, food, utilities, and more—to provide you with essential financial insights. Even with job prospects and savings, it’s crucial to understand the cost dynamics to avoid living beyond your means. While living in Philadelphia may be pricier than many cities in the US, its vibrant cultural scene and quality of life make it an exceptional place to call home.
Cost of Living in Philadelphia: Daily Life
Accommodation
- Off-campus Accommodation: Unlike many major cities, renting in Philadelphia remains relatively affordable, with renter-occupied households accounting for approximately 47% of the population. The average rent is $1,877 per month. One-bedroom units typically cost around $1,500, while two-bedroom apartments can exceed $2,000. Compared to cities like Oakland, CA, where rents surpass $2,000, or New York City, with rates over $3,000, Philadelphia offers significant savings.
- On-campus Accommodation: Take University of Pennsylvania for example. For the 2023-2024 academic year, first-year student rooms are uniformly priced at $12,166. Upperclass rooms have two price options, $12,166 or $15,958, based on the selected room type. During the selection process for returning students, room rates will be displayed at the bottom of each available room. For the 2024-2025 academic year,first-year student rooms are uniformly priced at $12,640. Upperclass rooms have two price options, $12,640 or $16,580, depending on the selected room type.
Food
Philadelphia boasts a diverse and high-quality food scene, offering many budget-friendly choices. According to May 2019 data from Numbeo.com, Philadelphia’s minimum recommended daily food expenditure is $13.70, totalling $424.84 per month. This is roughly $100 more than the U.S. average of $324.43. Dining out? Expect to pay $15 for a meal at an inexpensive restaurant, while a three-course meal for two at a mid-range establishment averages $60.
In 2023, a gallon of milk in Philly averaged over $5, compared to the national average of $4.36. According to Livingcost, Philadelphia residents spend about $636 monthly on food, including dining out. Post-pandemic dining costs have risen, but affordable options abound.
Transport
Another type of cost of living in Philadelphia is transport. Navigating Philadelphia without a car is straightforward, as it boasts a walk score of 79, making it the 4th most walkable city in the U.S. Despite this, over half of its residents primarily use cars, averaging a 42.36-minute drive for an 18.8-mile trip. With local gas prices at $2.68 per gallon, slightly below the national average, driving can still raise living costs.
To save, commuters can utilise SEPTA’s extensive rail, bus, subway, and trolley network, with one-way fares starting at $2.50 and monthly passes at $96. However, vehicle ownership becomes necessary in areas lacking public transport, further increasing expenses and making Philadelphia’s transportation index 6.7% above the national average.
Utilities
Utilities is an essential part considering life in Philadelphia. According to Numbeo.com’s May 2019 data, the average monthly utility bill in Philadelphia is $145.61 for a 915-square-foot apartment, covering electricity, heating, water, and garbage. This is slightly below the national average of $152.11. Adding internet costs around $67.50 monthly in Philadelphia, whereas the national average is $62.52. Overall, Philadelphians spend about $211.31 monthly on utilities and internet, comparable to Brooklyn and Chicago costs but lower than the national average of $229.39.
Healthcare
Living expenses in Philadelphia also contains healthcare. In Philadelphia, healthcare expenses are 6.5% below the national average:
Hospital fees in Philadelphia can be substantial. With some of the nation’s top medical institutions located here, the cost of high-quality care is often reflected in higher charges. However, these institutions also provide cutting-edge treatments and specialised care that may not be available elsewhere.
Philadelphia insurance premiums vary widely, influenced by coverage levels, provider networks, and individual health circumstances. While employer-sponsored insurance can mitigate some of these costs, those without such benefits might face steep premiums when purchasing plans independently.
Prescription drug prices continue to rise, presenting a significant burden for many residents, especially those requiring long-term medications. Philadelphia is no exception to the national trend of escalating pharmaceutical costs, which can strain household budgets.
Tax
When it comes to Philadelphia cost of living, tax can’t be ignored. The effective property tax rate in Philadelphia County is 0.98%, significantly lower than Allegheny County’s (Pittsburgh) rate of 2.08%. Pennsylvania boasts the lowest flat income tax rate among eight states with such a system, at 3.07%. Philadelphia adds a municipal income tax of 3.891%. The state’s sales tax is 6%, with an additional 2% in Philadelphia, totaling 8%, comparable to New York City’s 8.875% but lower than Chicago’s 10.25%. Higher taxes on essential goods and income can raise living costs. Sales taxes start at 6% in Philadelphia, and income taxes begin at 3.07%.
Cost of Living in Philadelphia: Education
University of Pennsylvania, one of the prestigious Ivy League institutions, offers a world-class education with significant tuition fees. For the 2023-2024 academic year, undergraduate tuition is approximately $60,000, excluding additional costs such as housing, meal plans, and other fees, bringing the total to around $80,000 annually.
While the investment is substantial, Penn provides extensive financial aid packages to ensure that talented students from all backgrounds can access their exceptional programmes. The university’s commitment to need-blind admissions and generous scholarships underscores its dedication to making high-quality education accessible and affordable.
Navigating tuition fees at Drexel University involves understanding both the investment and the value it brings to your future. Drexel’s undergraduate tuition for the 2023-2024 academic year is approximately $56,595. This fee includes comprehensive access to state-of-the-art facilities, a diverse range of academic programmes, and invaluable co-op opportunities that bridge the gap between education and career. While the cost may seem substantial, Drexel offers various financial aid options and scholarships to support students. Ultimately, the university’s commitment to experiential learning ensures that your educational investment yields long-term benefits, paving the way for a successful and fulfilling career.
Conclusion
In conclusion, the cost of living in Philadelphia presents a balanced spectrum of affordability and quality of life. While housing costs can vary significantly across neighbourhoods, there are options to suit a range of budgets. The city’s diverse amenities, rich cultural heritage, and vibrant community life offer considerable value for the investment. Furthermore, Philadelphia’s robust public transportation system and relatively low healthcare costs contribute to its appeal. For those seeking a dynamic urban experience without the exorbitant price tag of larger metropolitan areas, Philadelphia stands out as a compelling choice, blending economic practicality with enriching lifestyle opportunities.
Cost of Living in Philadelphia FAQ
What is a livable salary in Philadelphia?
Generally, a single individual can maintain a modest yet comfortable living with an annual salary of around $50,000 to $60,000. This range accounts for essential expenses such as housing, utilities, transportation, food, and healthcare. The required income understandably increases for families, with a household needing approximately $80,000 to $100,000 per year to cover similar necessities, along with additional costs like childcare and education.
What are the pros and cons of living in Philadelphia?
- Pros: Philadelphia boasts affordable cost of living for a major city. Its deep-rooted history, favorable public transportation, appealing higher education options, plenty of beautiful outdoor spaces make it a excellent city to live.
- Cons: Living in Philadelphia has its drawbacks, including a higher crime rate than other cities, traffic congestion, and limited parking options. Additionally, some areas face aging infrastructure, and public schools often grapple with funding issues.
Is Philly cheaper than New York?
Yes, Philly is cheaper than New York. When comparing costs, Philadelphia generally offers a more affordable lifestyle than New York City. Housing, groceries, and transportation expenses are notably lower in Philly, making it an attractive option for individuals seeking a vibrant urban experience without the high price tag often associated with New York.
