Cost of Living in Philadelphia, PA

With a cost of living index of 95, Philadelphia, PA is slightly more affordable than average. Living here is 5% cheaper than the national average and 12% above the Pennsylvania state average of 83. As a major city with a population of 1,582,432, Philadelphia offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Philadelphia's cost of living. The median monthly rent is $1,323 (0% below the US median of $1,319), and the median home value sits at $232,400 (24% below the national median of $304,900). At current prices, the median home costs roughly 3.8x the median household income — a moderately affordable ratio by today's standards.

The median household income in Philadelphia is $60,698, which is 19% lower than the national median of $75,149. Residents spend roughly 26% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability.

Everyday prices in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 5 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.