Cost of living can be tricky

It’s not unusual for people from other parts of the nation moving to northwestern North Carolina to choose Wilkes over more mountainous adjoining counties because of our more moderately-priced housing. Of course, finding something available is another matter.

How cost of living in Wilkes compares to this elsewhere depends on how you calculate it. The definition of cost of living is the amount of money required to cover necessary expenses to maintain a certain lifestyle standard in a particular place and time.

An analysis in late 2022 by SmartAsset Advisors LLC, an investment adviser, determined Wilkes has the third lowest average cost of living among North Carolina’s 100 counties. The only counties with lower average costs of living were Bladen, lowest, and Washington, second lowest.

SmartAsset looked at the cost of goods, services, housing and other expenses for a single person household as a percentage of median income in each county, weighted per capita income and subtracted income taxes to determine each county’s average “purchasing power.” That number is roughly the average amount of money needed after covering their living expenses.

Since the SmartAsset analysis was for a single person household, it apparently didn’t include child care costs. And that’s a big one.

An N.C. Budget and Tax Center analysis indicated the cost of living in Wilkes is less than in urban parts of the state and well in line with most other rural counties. The data is from the State Budget Office.

According to this report, the annual average statewide income needed for a family consisting of two adults and two children to make ends meet is $$69,270. The annual average income needed for a family this size to make ends meet in Wilkes alone is $62.550. The report said it is $64,120 in Watauga County, $57,750 in Yadkin County, $59,850 in Alexander County, $52,950 in Alleghany County, $55,180 in Ashe County, $57,910 in Caldwell County, $69,180 in Iredell County and $62,050 in Surry County.

It’s interesting that child care costs for a household with two adults (ages 20-50), one infant (less than a year old) and one child (age 6-18) were found to be higher in Wilkes than in all adjoining counties except Iredell. Child care costs were $1,220 in Wilkes and $1,190 in Surry, $970 in Caldwell, $880 in Yadkin, $710 in Alleghany, $1,070 in Alexander, $1,120 in Watauga and $840 in Ashe. In Iredell, it is $1,450.

A comparison of monthly costs for a household this size showed the following: housing, $720 in Wilkes and $990 statewide; food costs, $830 in both; child care costs, $1,220 in Wilkes and $1,380 statewide; health care costs, $630 in both; transportation costs, $450 in Wilkes and $610 statewide; miscellaneous costs, $519 in Wilkes and $550 statewide; federal and state taxes, $420 in Wilkes and $520 statewide; and consumer debt payments, $250 in Wilkes and $270 statewide.

The only sure thing about cost of living studies is that overall cost of living increased drastically in 2022 compared to recent years. Therefore, most studies currently available underestimate costs of living.