If you’re considering moving to Oklahoma, one of the first things you’ll want to know is the cost of living. Cost of living refers to the amount of money needed to cover basic expenses such as housing, food, transportation, healthcare, and taxes in a particular location. In this article, we’ll explore the various factors that make up the cost of living in Oklahoma, how it compares to other states, and some tips for saving money while living in the Sooner State.

Understanding the Basics of Cost of Living

Before diving into the specifics of Oklahoma’s cost of living, it’s important to understand the basics. The cost of living index (COLI) is a calculation that takes into account the prices of goods and services in a particular area. COLI is usually measured as a percentage, with 100 being the national average. A COLI of 110, for example, means that goods and services cost 10% more in that area compared to the national average.

It’s important to note that the cost of living can vary greatly depending on the location. For example, the cost of living in a rural area may be significantly lower than in a major city. Additionally, the cost of living can be affected by factors such as housing, transportation, and healthcare costs.

When considering the cost of living in a particular area, it’s also important to take into account the average income for that area. A higher cost of living may be more manageable if the average income is also higher. On the other hand, a lower cost of living may not necessarily mean a better standard of living if the average income is also lower.

How is the Cost of Living Calculated?

The cost of living is calculated based on the prices of the following items:

• Housing – Rent or mortgage payments, property taxes, and utilities
• Food – Groceries and eating out
• Transportation – Vehicle expenses and public transportation
• Healthcare – Doctor visits, medications, and insurance
• Taxes – Federal and state income taxes, sales tax, and property tax

All of these expenses are weighted based on their importance to the average household. For example, housing is typically the largest expense for most households, followed by transportation and food.

It’s important to note that the cost of living can vary greatly depending on where you live. For example, the cost of housing in a major city may be significantly higher than in a rural area. Additionally, the cost of healthcare can vary depending on factors such as age and pre-existing conditions. When calculating the cost of living, it’s important to take into account these regional and individual differences to get an accurate picture of expenses.

Factors that Affect the Cost of Living in Oklahoma

As with any state, several factors affect the cost of living in Oklahoma. One of the most significant factors is housing. Oklahoma has a generally low cost of living, particularly when it comes to housing. Other factors that affect the cost of living in Oklahoma include income taxes, property taxes, healthcare costs, and transportation expenses.

Another factor that affects the cost of living in Oklahoma is the availability and cost of food. Oklahoma has a diverse agricultural industry, which can lead to lower food costs for residents. However, access to fresh and healthy food can be limited in some areas, particularly in rural parts of the state. Additionally, the cost of dining out can vary greatly depending on the location and type of restaurant.

Housing Costs in Oklahoma: Renting vs Buying

Oklahoma has one of the lowest housing costs in the country. The average cost of a home in Oklahoma is around $127,000, which is significantly lower than the national average. If you’re planning on renting, the average cost of a one-bedroom apartment in Oklahoma is around $700 per month, although this can vary depending on the city and neighborhood.

However, it’s important to consider the long-term financial benefits of buying a home in Oklahoma. With low housing costs and a stable economy, buying a home can be a smart investment. Homeowners in Oklahoma also benefit from tax deductions on mortgage interest and property taxes.

Additionally, Oklahoma offers a variety of programs and incentives for first-time homebuyers, including down payment assistance and low-interest loans. These programs can make it easier for individuals and families to achieve their dream of homeownership.

Exploring the Average Salary in Oklahoma

The average salary in Oklahoma is around $46,000 per year, which is slightly lower than the national average. However, the cost of living in Oklahoma is also lower, which means that your money can go further. Additionally, some industries such as energy, aerospace, and agriculture offer higher salaries in Oklahoma than in other parts of the country.

It’s also worth noting that the average salary in Oklahoma varies depending on the level of education and experience. According to recent data, individuals with a bachelor’s degree or higher earn an average of $60,000 per year, while those with only a high school diploma earn an average of $30,000 per year. Similarly, individuals with several years of experience in their field tend to earn higher salaries than those who are just starting out.

Food Expenses in Oklahoma: Groceries and Eating Out

Oklahoma has a relatively low cost of groceries, with an average cost of about $250 per month for a family of four. Eating out can be more expensive, although fast food options tend to be relatively inexpensive. Restaurants in larger cities such as Oklahoma City and Tulsa can be pricier than in smaller towns.

It is worth noting that Oklahoma has a strong agricultural industry, which contributes to the availability of fresh produce and locally sourced meats. This can make grocery shopping more affordable and provide access to high-quality ingredients for home cooking.

Additionally, Oklahoma has a rich culinary history, with influences from Native American, Mexican, and Southern cuisine. This has led to a diverse food scene, with many unique and delicious dining options. Some popular dishes include chicken fried steak, barbecue, and fried catfish.

Also read: cost of living in Orlando

Transportation Costs: Owning a Car vs Public Transportation

Owning a car is the most common way to get around in Oklahoma. Gas prices are about average compared to the rest of the country. However, car insurance rates can be higher than in other states. Public transportation options in Oklahoma are generally limited, although larger cities may have bus and light rail systems.

Despite the limited public transportation options in Oklahoma, there are some benefits to using it over owning a car. For example, taking public transportation can save you money on gas, car maintenance, and parking fees. Additionally, it can reduce your carbon footprint and help alleviate traffic congestion. However, it’s important to note that public transportation schedules may not always be convenient and may not reach all areas of the state.

Healthcare and Insurance Costs in Oklahoma

Healthcare costs in Oklahoma are about average compared to other states. However, insurance rates can vary widely depending on the level of coverage you need. If you’re considering moving to Oklahoma, it’s important to shop around for the best insurance rates to ensure you get the coverage you need at a price you can afford.

It’s worth noting that Oklahoma has a high percentage of uninsured residents, which can impact the overall cost of healthcare in the state. This is partly due to the fact that Oklahoma did not expand Medicaid under the Affordable Care Act, leaving many low-income residents without access to affordable healthcare options.

On the other hand, Oklahoma has a number of programs and initiatives aimed at improving healthcare access and affordability, particularly in rural areas. For example, the Oklahoma State Department of Health offers a variety of services and resources to help residents find affordable healthcare options and navigate the healthcare system.

Taxes and Other Expenses to Consider in Oklahoma

Oklahoma has a state income tax rate of 5%, which is lower than in many other states. Property taxes in Oklahoma are also relatively low, although rates can vary depending on the county and city. Additionally, sales tax in Oklahoma is around 4.5%.

It’s important to note that Oklahoma also has a use tax, which is a tax on goods purchased outside of the state but used within Oklahoma. This tax is typically the same rate as the sales tax and is often overlooked by consumers. Additionally, Oklahoma has a motor vehicle excise tax, which is a tax on the purchase of a new or used vehicle. The rate for this tax varies depending on the age and value of the vehicle.

Comparing Oklahoma’s Cost of Living to Other States

Overall, Oklahoma has a relatively low cost of living compared to other states. According to the cost of living index, Oklahoma’s COLI is 87, which means that goods and services cost 13% less than the national average. This is significantly lower than states such as New York, California, and Hawaii, which have high COLIs due to their high housing and transportation costs.

Tips for Saving Money While Living in Oklahoma

There are several ways to save money while living in Oklahoma. One of the most effective is to reduce your housing costs by renting or buying a smaller home or apartment. Additionally, buying groceries and cooking at home can save you money compared to eating out. Finally, shopping around for insurance rates and comparing utility costs can also help reduce expenses.

The Pros and Cons of Living in Oklahoma Based on its Cost of Living

Overall, the low cost of living in Oklahoma makes it an attractive option for many people. Housing, food, and transportation costs are generally lower than in other states, which means that you can stretch your dollars further. However, lower costs may also mean lower salaries, which can be a concern for some. Additionally, Oklahoma’s tornado season can be a concern for those who are not used to severe weather conditions.

Future Projections for the Cost of Living in Oklahoma

Projections for the future cost of living in Oklahoma are generally positive. As the state’s economy continues to grow and attract new industries, salaries may increase. Additionally, new housing developments and transportation infrastructure may increase demand and drive up housing and transportation costs.

In conclusion, the cost of living in Oklahoma is generally lower than in other states, making it an attractive option for those looking to save money. Understanding the factors that make up the cost of living, such as housing, food, transportation, and taxes, can help you make informed decisions about your finances. Whether you’re moving to Oklahoma for work, school, or retirement, taking the time to research the cost of living can help you make the most of your money and enjoy all that the state has to offer.