In times of economic uncertainty and record inflation, Alabamians may have something to be thankful for.
Residents of the Yellowhammer State, according to a new study by doxo.com, have one of the lowest cost of living averages out of all 50 states – ranking 41st in average monthly spending. Household expenses in the state also turned out to be 13.4% lower than the recorded national average, which was $2,046.
The study also showed that most households in the Yellowhammer State pay an average of $1,772 per month with mortgages usually averaging $970, the rent averaging $868, and auto bills usually being $467.
The one area where Alabamians are paying a higher amount than the national average was in utilities with Alabama averaging $387 a month, and the national average being $351. Auto insurance was one of the more affordable areas with Alabama averaging $174 compared to the national average of $207.
Out of the 78 cities and towns surveyed, the highest cost of living in the state was found to be in Trussville, where the average cost of living was $2,423 per month. In Trussville, 29% of household incomes are used to pay for everyday household bills. Trussville is in the Birmingham metro where the average household pays $2,105 a month, or $25,264 a year for the 10 most common household bills, compared to the state average of $1,772 and the national average of $2,046.
Piedmont had the lowest cost of living in the state with an average of $1,160 per month in bills for each household. Household bills in the city usually average around 33% of the total income of local households.
The average cost of living in each city was reached by taking into account 10 common household bills: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet & Phone; Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.
The study also showed that collectively Alabamians pay $40 billion in household bills annually.
Austen Shipley is a staff writer for Yellowhammer News.
Don’t miss out! Subscribe today to have Alabama’s leading headlines delivered to your inbox.