Are you considering moving to Orlando, Florida? Orlando is a city in Florida and is the county seat of Orange County. It is part of the Orlando metropolitan area, which is the third largest metropolitan area in Florida behind Tampa and Miami. The population of Orlando is 307,573. Orlando is known for its amazing attractions and theme parks, gorgeous real estate, and incredible weather.
If you are thinking about relocating to the area, then you may be wondering about the Orlando cost of living. This is what you need to know about the day-to-day living expenses in Orlando as well as the city’s overall affordability.
Orlando Florida Cost of Living Index
How much does it cost to live in Orlando, Florida? Measuring the cost of living in Orlando can be done in many different ways. A great place to start is by checking out Orlando’s Cost of Living Index. The Cost of Living Index, or COLI, compares the cost of goods and services in cities to the national average.
The Orlando Cost of Living Index is 99.3. This means that Orlando is .07% more affordable than the national average of 100. It is 3.8% more affordable than the Florida cost of living, with a Cost of Living Index of 103.1. Utilities and housing expenses are below the national average. Transportation costs are .05% above the national average, and grocery costs are 5.6% above the national average.
Consumer Price Index (CPI)
The Consumer Price Index, or CPI, is a monthly report published by the Bureau of Labor Statistics that states the average changes in prices that consumers pay for goods and services in any given area. Orlando is part of the Southeast region.
The Southeast region Consumer Price Index decreased 0.3% over the past two months; however, it is up by 7% over the past year. Since 2021, food prices have increased by 10.5%, housing prices have increased by 9.8%, energy prices have increased by 16.3%, and medical care expenses have increased by 3.2%.
Consumer Expenditure Survey
The cost of living in Orlando, Florida can also be evaluated through the BLS Consumer Expenditure Survey. This is another survey conducted by the Census Bureau and is used to calculate the CPI. According to the most recent BLS Consumer Survey, households in Orlando (located in the South region) spent an average of $58,682 during the 2020/2021 calendar year. This is lower than the national average of $64,187. This is how a typical Orlando household budget breaks down.
- Housing: 33.5% ($19,682), compared to the U.S. average of 34.3%
- Transportation: 17.9% ($10,483), compared to the U.S. average of 16.2%
- Food: 12.0% ($7,052), compared to the U.S. average of 12.2%
- Healthcare: 8.7% ($5,103), compared to the U.S. average of 8.3%
- Entertainment: 4.7% ($2,763), compared to the U.S. average of 5.1%
- Education: 1.8% ($1,051), compared to the U.S. average of 1.9%
The cost of living in Orlando, FL is generally right around or below the national average. Transportation costs are slightly higher as the best way to get around the city is by personal vehicle. The LYNX Bus Service is available to residents of Orlando, but it is much easier to have your own car, so you don’t have to spend time waiting at the bus stop and making multiple stops.
Family Budget in Peoria
Is Orlando affordable for your family? According to the Economic Policy Institute’s Family Budget Calendar, the average household with two adults and two kids would have an average Orlando cost of living of $7,077 per month, or $84,927 per year. Here is a breakdown of an Orlando family budget.
- Housing: $1,321
- Healthcare: $1,282
- Transportation: $1,143
- Child care: $1,090
- Food: $842
- Taxes: $616
- Other necessities: $784
These numbers can change based on your family size, budgeting skills, lifestyle, and neighborhood. If you have no children, this number drops drastically. For a family with two adults and no children, the average monthly expenses drop to $4,651, or $55,815 per year.
Cost of Household Items, Utilities, Gas & Groceries in Orlando
What is the average cost of living in Orlando, Florida? Before moving to Orlando, you will want to ensure you can afford to live there. Take a look at this list of common expenses in Orlando and compare them to your current expenses.
- Beef (1 pound): $6.42
- Gallon of milk: $4.26
- Potatoes (1 pound): $1.39
- Loaf of bread: $3.08
- Bottle of beer: $5.50
- Movie ticket: $14.00
- McDonald’s meal: $9.00
- Gallon of gas: $3.53
- Average cell phone bill: $191.25 per month
The average cost of utilities in Orlando is $173.02. You can also expect to pay an average monthly car insurance premium of $70 per month. If you opt for public transportation, then you can buy a single bus ride pass for $2.00 or a monthly pass for $50.00. The average commute to work in Orlando is 25.8 minutes.
Orlando Real Estate Market
On the hunt for Orlando homes for sale? The Orlando, Florida, real estate market is currently cooling down a bit. On average, homes in Orlando are staying on the market for 37 days compared to 13 days last year. In December of 2022, 590 homes were sold compared to 952 in the previous year. The average home price in Orlando is $354,900, which is up 8.7% from last year. This is slightly lower than the national average of $388,472. Nearly 15.9% of homes in Orlando sell for over the initial listing price.
Some of the most popular neighborhoods in Orlando are:
- Mercy Drive: Average home price of $202,500
- Rosemont North: Average home price of $314,000
- Signal Hill: Average home price of $190,000
- Spring Lake: Average home price of $700,000
- Palomar: Average home price of $1,440,000
There are 140,940 housing units in Orlando. About 38% of the housing units are owner-occupied and 62% of them are renter occupied.
Orlando FL Rental Market – Average Rent in Orlando Florida
Looking for apartments for rent in Orlando? According to RentCafe, the average rent in Orlando, Florida is $1,929 per month. Although this is fairly high, it is still lower than other major Florida cities such as Miami, where the average rent is $2,356, and St. Petersburg, where the rent averages out to $1,969.
Orlando’s most affordable rent prices are within the Mercy Drive, Rosemont North, and Seaboard Industrial neighborhoods, where rent averages out to $1,328 per month. The most expensive neighborhoods are Baldwin Park ($2,375 per month), Palomar ($2,313 per month), and Spring Hill ($2,313 per month).
According to the 2022 Rental Affordability Report, it is more affordable to buy than rent in Orlando. You can further compare renting and buying in Orlando by calculating the price-to-rent ratio. The higher the ratio is, the better the market is for renters. The lower the ratio is, the better the market is for buyers. To calculate the price-to-rent ratio, you only need to divide the median home price by the median annual rent.
The median home price in Orlando is 354,900, and the median yearly rent is $23,148. When you divide the two numbers, you get a price-to-rent ratio of 15.3. This is considered a low price-to-rent ratio, confirming that Orlando is a better place for buyers rather than renters.
According to the National Low Income Housing Coalition’s Out of Reach Report, an average full-time worker would have to earn $27.35 per hour ($56,880 per year) to afford a basic 2-bedroom apartment in Orlando without spending over 30% of their income on housing. This is higher than the Florida average of $26.38 ($54,870 per year).
Average Salary & Household Income in Orlando Florida
The average income in Orlando is $54,167 per household. This is about 90% of the Florida average, which is $63,062.
According to PayScale, the average salary in Orlando, FL is $68,000, or $18.43 per hour. The minimum wage in Florida is currently $11.00. This is set to increase to $12.00 in September of 2023 and $13.00 in September of 2024.
Here are a few common jobs in Orlando and what you can expect to make yearly from each one.
- Financial Manager: $140,350
- Human Resources Manager: $115,680
- Tax Preparers: $40,960
- Elementary School Teacher: $57,660
- Registered Nurse: $72,770
- Dentist: $182,730
- Retail Salesperson: $29,170
Orlando is a major industrial and hi-tech hub. The metro area has a $13.4 billion technology industry that employs over 50,000 people. Orlando also provides a wide variety of jobs in the healthcare, education, manufacturing, and tourism industries.
Income, Sales, and Property Taxes in Orlando
Florida has famously had one of the lowest tax burdens in the country. Here’s how the different tax rates break down.
Florida Income Tax Rate
One of the best parts about living in Florida is that there is no state income tax! They are one of the seven states in the U.S. that do not have a state income tax. However, residents are still required to pay federal income tax. Also, businesses and corporations in Florida must file a corporate income tax return (unless exempt).
Sales Tax in Orlando
The current total local sales tax rate in Orlando, FL, is 6.500%.
Sales Tax Breakdown
- Florida State: 6.000%
- Orange County: 0.500%
- Orlando: 0.000%
- Total: 6.500%
Florida has the 23rd highest sales tax rate in the United States.
Orlando Property Tax
The state of Florida does not collect any property taxes, so property taxes are assessed at the local level and can vary by county, and are based on the value of the property. The Orange County Tax Collector is the officer in charge of the Orange County property taxes.
The formula for property taxes is (Taxable value / 1000) * millage rate = property taxes. The millage is the rate charged for every $1,000 of taxable value in your real estate. The Orange County mileage rate is 4.4347, however, the county has special taxing districts, each with their own mileage rate.
The millage rate in Orlando is 6.65, which means that residents pay $6.65 for every $1,000 that their property is worth.
Orlando vs. Miami Cost of Living
Are you stuck deciding between moving to Orlando or Miami? Here is a quick breakdown of the cost of living in Orlando vs. Miami.
- Average home price: $354,900 in Orlando vs. $515,000 in Miami
- Average rent: $1,929 per month in Orlando vs. $2,356 in Miami
- Average salary: $68,000 in Orlando vs. $69,000 in Miami
- Average utilities: $173.02 in Orlando vs. $156.11 in Miami
- Average monthly expenses: $7,077 per month in Orlando vs. $7,549 per month in Miami.
- Average cost of transportation: $1,143 per month in Orlando vs. $1,070 per month in Miami
Based on the facts above, Orlando is more affordable than Miami. The average salary and utilities in both cities are fairly similar, but the average home price in Miami is 45% higher and the average rent is 22% higher. The average salary in Miami is only $1,000 higher, however, the cost of living is much higher. This may make it less comfortable to live in Miami rather than Orlando.
Overall, Orlando, FL is an affordable place to live. There are incredible real estate options as well as a high quality of living that many other cities cannot provide you with. If you are ready to move to the area, then give 2 College Brothers a call at (813) 922-1529 for a free quote today.