What is Cost of Living?
Would you like to know the cost of living in various areas across the United States to help determine if you can afford to live in a certain area? A cost of living index is a useful comparison tool in evaluating the cost of groceries, housing, utilities, transportation, health care, and miscellaneous goods and services in a specified location.
The cost of living index measures relative price levels for consumer goods and services necessary to maintain a standard of living in a specific area. The average index for all locations in the United States is equal to 100. Each specific location is represented as a percentage of the average index of 100.