Housing Costs in Raleigh
Housing is the biggest expense for most Raleigh residents. As of 2025, the median rent for a 2-bedroom apartment in Raleigh is approximately $1,850 per month. Renting a typical 3-bedroom house costs around $2,400 monthly. For those looking to purchase a home, the median price is $450,000, which translates to a monthly mortgage payment of roughly $2,700 (assuming a 30-year fixed loan with 20% down).
It’s important to note that housing costs can vary significantly depending on the neighborhood and property age. Newer developments and those closer to downtown Raleigh tend to have higher prices. Many single-family homes are part of Homeowners Associations (HOAs), which charge additional monthly fees, typically ranging from $100 to $300.
| Housing Type | Median Monthly Cost |
|---|---|
| 2BR Apartment | $1,850 |
| 3BR House (Rent) | $2,400 |
| 3BR House (Buy) | $2,700 |
Utilities and Energy Bills
Utility costs in Raleigh are relatively affordable compared to other major cities. For an average 2-bedroom apartment, residents can expect to pay around $120 for electricity, $40 for natural gas, $50 for water, and $30 for trash collection each month. High-speed internet adds another $70 on average.
It’s worth noting that electricity bills tend to spike during the hot summer months due to air conditioning usage. In July and August, cooling costs can easily double the typical electric bill. Larger homes will also have proportionally higher utility expenses.
- Electricity: $120/month (higher in summer)
- Natural Gas: $40/month
- Water: $50/month
- Trash: $30/month
- Internet: $70/month
Groceries and Daily Expenses
Food costs in Raleigh are on par with the national average. For a single person, a typical monthly grocery bill is around $350. This assumes mostly cooking at home with occasional splurges on dining out or specialty items. A couple can expect to spend $600-700 on groceries each month, while a family of four may need to budget $900 or more.
To put this in perspective, a gallon of milk costs about $3.50, a loaf of bread is $2.50, and a dozen eggs are $2.75. Dining out for two at a mid-range restaurant with drinks usually totals $60-80. Don’t forget to factor in household essentials like toiletries, cleaning supplies, and paper goods, which can easily add $50-100 to the monthly budget.
Taxes and Hidden Fees
Raleigh residents pay a property tax rate of 0.55%, which is slightly lower than the national average. For a $450,000 home, annual property taxes would be approximately $2,475. Vehicle owners must also pay an annual registration fee of $38.75 plus applicable local taxes.
North Carolina has a statewide sales tax of 4.75%, but Wake County (which includes Raleigh) adds an additional 2.25%, bringing the total to 7%. This applies to most goods and services, with a few exceptions like unprepared food and prescription drugs.
| Tax/Fee Type | Rate |
|---|---|
| Property Tax | 0.55% |
| Vehicle Registration | $38.75 + local taxes |
| Sales Tax | 7% |
Summary Monthly Budget
| Expense Category | Single Person | Couple | Family of 4 |
|---|---|---|---|
| Housing (Rent, 2BR) | $1,850 | $1,850 | – |
| Housing (Buy, 3BR) | – | – | $2,700 |
| Utilities | $310 | $350 | $450 |
| Groceries | $350 | $650 | $900 |
| Transportation | $200 | $300 | $400 |
| Healthcare | $300 | $600 | $1,000 |
| Other Necessities | $400 | $600 | $800 |
| Total Monthly Budget | $3,410 | $4,350 | $6,250 |
To live comfortably in Raleigh, a single person needs a gross monthly income (pre-tax) of at least $4,100. For a couple, aim for a combined income of $5,200 per month. Families with two children should target $7,500 monthly to cover all expenses with some room for savings and discretionary spending.
Lifestyle Considerations
Raleigh offers a high quality of life with its diverse neighborhoods, thriving job market, and abundance of parks and green spaces. The average one-way commute time is 25 minutes, which is slightly better than the US average. Traffic can be congested during rush hour on major highways like I-40 and I-440.
Housing options range from dense apartments near downtown to spacious single-family homes in tree-lined suburbs. Newer construction tends to be further from the city center but offers modern amenities. Older neighborhoods inside the Beltline have more character but may require renovation.
While Raleigh’s cost of living is higher than smaller North Carolina cities like Greensboro or Winston-Salem, it remains more affordable than major metros like Charlotte or Atlanta. Residents benefit from a temperate climate, diverse culture, and proximity to top universities and Research Triangle Park.
Frequently Asked Questions
- Q: Is Raleigh an expensive place to live?
A: Compared to the national average, Raleigh’s cost of living is slightly higher. However, it’s more affordable than many other large cities on the East Coast. - Q: How much do I need to make to live comfortably in Raleigh?
A: A single person needs a gross monthly income of at least $4,100 to live comfortably in Raleigh. Couples should aim for $5,200 per month, while families with two children need around $7,500. - Q: What is the average rent in Raleigh?
A: As of 2025, the median rent for a 2-bedroom apartment in Raleigh is $1,850 per month. Renting a 3-bedroom house costs about $2,400 monthly. - Q: Are property taxes high in Raleigh?
A: Raleigh’s property tax rate of 0.55% is actually slightly lower than the national average. However, with median home prices around $450,000, the annual tax bill is still significant. - Q: How much does transportation cost in Raleigh?
A: Transportation expenses vary based on your commute and vehicle, but budget at least $200-300 per month for gas, maintenance, and insurance. Public transit is limited but can be a cheaper option for some routes. - Q: What salary do you need to buy a house in Raleigh?
A: To afford the median home price of $450,000, you’ll need a household income of at least $100,000, assuming a 20% down payment. Lenders typically want the mortgage payment to be less than 28% of your gross monthly income. - Q: Is Raleigh cheaper than Charlotte?
A: Yes, Raleigh’s cost of living is about 5% lower than Charlotte’s, mainly due to more affordable housing. However, both cities are more expensive than smaller North Carolina towns. - Q: What are the biggest expenses living in Raleigh?
A: For most Raleigh residents, housing is the largest expense, followed by transportation, food, and healthcare. Utility costs are relatively low, but property taxes and HOA fees can add up.