Chapel Hill, NC vs. Raleigh, NC: Cost of Living Comparison (2025)
Considering a move to Chapel Hill or Raleigh, NC? Housing costs in Chapel Hill average a whopping $500 more per month compared to Raleigh. But which city comes out ahead when you factor in utilities, groceries, taxes and more? This cost of living comparison breaks it all down to help you decide which North Carolina city fits your lifestyle and budget in 2025.
1. Housing Costs
Housing is often the biggest line item in any monthly budget. Here’s how typical housing costs compare between Chapel Hill and Raleigh:
| Housing Type | Chapel Hill | Raleigh |
|---|---|---|
| Median 2BR Apartment Rent | $1,850 | $1,400 |
| Median 3BR Home Price | $550,000 | $450,000 |
🏆 Winner: Raleigh. Housing costs an average of $450-500 less per month in Raleigh compared to Chapel Hill.
2. Utilities and Energy Costs
Utility bills can fluctuate based on your home’s size and efficiency. But in general, Chapel Hill and Raleigh residents can expect to pay:
- Electricity: $120-180/month
- Water/Sewer/Trash: $70-100/month
- Internet: $60-80/month
Both cities experience hot, humid summers and mild winters. Electricity bills tend to peak in July and August. Some utility providers like Duke Energy offer off-peak usage plans that can help lower costs.
🏆 Winner: Tie. Utility costs are comparable between the two cities.
3. Groceries and Daily Expenses
Groceries and everyday items like toiletries and cleaning supplies cost about the same in Chapel Hill and Raleigh. Expect to budget at least $400 per person for groceries each month. Dining out will add $25-60 per meal depending on the restaurant.
🏆 Winner: Tie. There are no major cost differences for groceries and daily goods.
4. Taxes and Fees
North Carolina charges a flat 5.25% income tax rate. Property taxes are assessed locally:
- Chapel Hill property tax rate: 0.688%
- Raleigh property tax rate: 0.3393%
So for a $400K home, annual property taxes would be $2,752 in Chapel Hill vs. $1,357 in Raleigh.
Some neighborhoods also charge Homeowners Association (HOA) fees. In Chapel Hill, these often include services like landscaping, exterior maintenance, and trash collection. Raleigh has fewer neighborhoods with HOAs. Fees range from $50-500/month in both cities.
🏆 Winner: Raleigh. Lower property tax rates give Raleigh the advantage.
5. Cost Summary Table
| Category | Chapel Hill | Raleigh |
|---|---|---|
| Housing (3BR home) | $2,750 | $2,250 |
| Utilities | $300 | $300 |
| Groceries | $500 | $500 |
| Transportation | $200 | $200 |
| Taxes (property) | $229 | $113 |
| Misc. | $500 | $500 |
| Estimated Monthly Total | $4,479 | $3,863 |
6. Lifestyle Fit
Cost is just one factor when choosing where to live. Consider how each city fits your lifestyle:
- Walkability: Chapel Hill’s downtown and UNC campus are very walkable. Raleigh is more spread out.
- Commute: Chapel Hill averages a 23 minute one-way commute vs. 27 minutes in Raleigh.
- Climate: Both cities get hot, humid summers and mild winters.
- Noise: Chapel Hill has a quieter, small town feel. Raleigh is a larger city with more urban bustle.
7. FAQ
Is Chapel Hill more affordable than Raleigh?
No, Raleigh is generally more affordable than Chapel Hill. Housing and property taxes cost less in Raleigh.
Which city has lower rent?
Raleigh has lower average rent prices. A typical 2BR apartment costs $1,400/month in Raleigh vs. $1,850 in Chapel Hill.
Where is it cheaper to buy a home?
Raleigh has lower median home prices and property tax rates, making it cheaper to buy a home there than in Chapel Hill.
8. Conclusion
While Chapel Hill has a quaint college town atmosphere, Raleigh comes out ahead in this cost of living comparison. Families and professionals looking to minimize housing and tax costs will find better value in Raleigh. But if you prioritize walkability and don’t mind paying a bit more, Chapel Hill may be the perfect fit.
Budgeting for a move? Check out these Monthly Budget Examples for Chapel Hill Residents. Or get an in-depth look at Cost of Living in Chapel Hill (2025 Guide).