The tiny Mid-Atlantic state of Delaware is known for its scenic beaches — like Rehoboth Beach — diverse cities and rich history. It was the first state to ratify the U.S. Constitution, earning its nickname as the First State. Thanks to its low taxes and corporate-friendly laws, it’s considered a haven for corporations, supporting a booming business and jobs market. Tech, pharmaceuticals and chemicals are also major industries. Work aside, Delaware’s beautiful coastline and lively cities make it a great place to live for everyone from families to retirees to young professionals.
As a popular Mid-Atlantic state to live in, the cost of living in Delaware does generally trend above the national average. But prices for things like housing aren’t unreasonably high, making it an affordable state for a wide range of budgets. Prices do vary in different cities, though, so some places are a better fit for your budget than others. This guide to Delaware’s cost of living takes an in-depth look at the cost of different items around the state so you can make educated, informed choices about the best place to live in Delaware for you.
Delaware housing prices
Housing costs in Delaware vary by area but are generally close to the national average. Some cities are slightly above the national average, while others are slightly below. But overall, housing costs are in the vicinity of national prices. However, that can add up to a difference of a couple of hundred dollars from one city to another. Another thing to keep in mind is that, for renting and homeowning alike, prices have gone up over the past year. This trend of growth is something to keep an eye on if you’re planning a move here.
To see how housing costs vary around the state, let’s look at average rents and the cost of buying a home in some of Delaware’s biggest cities.
Dover
Located in central Delaware close to Delaware Bay, the state capital of Dover is a small city that’s known for its historic architecture and landmarks, higher education and vibrant cultural offerings. It’s Delaware’s second-largest city next to Wilmington. Home to several universities including Delaware State University, the affordable cost of living and fun activities appeal to both students and families.
Dover’s housing costs are 3.2 percent below the national average. This makes it one of the most affordable cities to live in Delaware. Renting a one-bedroom apartment costs around $1,367 per month. The average rent for two-bedroom units is $1,602. However, these rates are up significantly from last year. One-bedroom prices are up 38 percent and the cost of a two-bedroom has climbed 23 percent.
As a college town, Dover is very much a renting city. But Dover’s housing market is also up 14.2 percent from last year. If you want to buy a home in Dover, the median sale price is $285,000.
Wilmington
Wilmington is Delaware’s most populous city, located in the northern part of the state close to the Pennsylvania state line. It’s also less than an hour’s drive away from Philadelphia. So, if you want to live close to the hustle and bustle of Philly without its expensive cost of living, Wilmington could be the answer.
Wilmington is Delaware’s hub for business and industries like banking. Home to many Fortune 500 companies, it’s earned the nickname of the Corporate Capital of America. With an up-and-coming food scene, it’s quickly earning a reputation as a foodie destination. Museums, performing arts venues and a picturesque riverfront park along the Delaware River are other benefits to calling Wilmington home.
Wilmington is one of the more expensive Delaware cities to live in, with housing costs 10.9 percent above the national average. The cost of rent is also higher than in other cities. The average rent is $1,537 for a one-bedroom apartment and $1,821 for a two-bedroom apartment. These rates are up 22 and 20 percent, respectively, from the previous year.
The median sale price for buying a house in Wilmington has gone down 0.35 percent over the past year to $284,000.
Delaware food prices
Thanks to Delaware Bay running nearly the entire length of the state, Delaware is a fantastic place for fresh seafood. Blue crabs, in particular, are an iconic Delaware dish. Living here, you’ll also get to enjoy the state’s signature sandwich, the Bobbie. Served from Capriotti’s in Wilmington, the Bobbie combines turkey, stuffing and cranberry sauce. It’s Thanksgiving in sandwich form. Chicken is also a beloved local staple, as well as peaches.
Similar to housing, food costs here are slightly more expensive. Average food costs in Delaware are 9.5 percent above the national average. Delawareans spend between $266 and $300 each month on food per person. Annually, that’s between $3,201 and $3,600.
Here’s how food costs vary in different Delaware cities:
- Dover is 7.9 percent above the national average
- Wilmington is 6.6 percent above the national average
Although Dover’s food prices are higher above the national average, Wilmington residents may find themselves paying more for individual items. A half-gallon of milk costs $2.79 in Wilmington compared to $2.24 in Dover. Buying a dozen eggs in Wilmington will set you back $1.99. But in Dover, it’s only $1.80.
Although Wilmington has more of a reputation as a foodie city, it’s more expensive to dine out in Dover. Going out for date night in Dover for a three-course meal for two at a nice restaurant costs $68. In Wilmington, it’s slightly cheaper at $65.
Delaware utility prices
Paying for utilities includes paying for essential services like electricity, water and internet. Here’s how average utility costs in these Delaware cities compare to the national average:
- Dover is 2.2 percent above the national average
- Wilmington is 11 percent below the national average
Dover is the most expensive city for utility costs, with total monthly energy spending coming out to $187.26. Wilmington’s utilities fall far below the national average in comparison. Here, total energy bills for the month are around $146.22. The average water bill is $45 and the average internet bill is $59.99. Internet costs more in both Dover and Wilmington, though. In Dover, you’ll pay around $68.66 for 60 megabits-per-second and $65.57 in Wilmington for the same speed.
Delaware gets the majority of its electricity from natural gas, as well as some renewables like biomass. The state’s water comes from surface water sources like reservoirs, rivers and creeks.
Delaware transportation prices
In general, using public transportation is a great way to save money on gas and other vehicle expenses, always good for the bottom line of the cost of living in Delaware. If you live in a big city, it also cuts down on traffic and commuting time. But transportation costs in Delaware are higher than the national average. So, determining whether using public transit saves you time and money depends on your lifestyle, transit needs and where you live in Delaware. Here’s what transportation costs look like compared to the national average in these Delaware cities:
- Dover is 2.3 percent above the national average
- Wilmington is 12.5 percent above the national average
Delaware is a small enough state that a single public transportation agency can provide service around the entire state. Although the majority of its routes are in major cities like Wilmington and Newark, DART First State provides public transportation throughout Delaware. Consisting of a fleet of buses, it operates 64 bus routes around the state.
While more rural counties have fewer routes, most of the state has access to public transit in some form. Not only is this a great way to save money on gas, but DART also provides seasonal routes to popular vacation beach towns. Let’s take a closer look at transportation costs and access in Dover and Wilmington.
DART in Dover
DART operates 10 different bus routes around the city of Dover and Kent County. Fares are the same statewide and priced by zone. County lines mark zone boundaries. Single-ride adult tickets start at $2 for one zone, $4 for two zones and $6 for three zones. A daily pass ranges from $4 to $10 depending on how many zones. A 30-day pass costs $60 for one zone and $120 for two zones.
If you travel outside the city using Route 1, you’ll encounter a toll route on the northern outskirts of the city. Tolls range from $2 to $6 for passenger vehicles depending on the day of the week. Weekend tolls are more expensive.
Usually, smaller college towns are easy to navigate with public transit or without a car. But Dover has a low transit score of 30. Its walk and bike scores are also low at 36 and 46. If you plan on living in Dover, it’s a good idea to bring a car to get around with ease.
DART in Wilmington
With 36 routes, Wilmington has the most extensive DART system. Prices are the same as in Dover.
Due to its proximity to Philadelphia, Wilmington does have access to the SEPTA public transportation system. The Wilmington/Newark commuter rail line runs from central Philly out to Wilmington and Newark throughout the week. Weekday service is more frequent, with 41 trains. There are only eight trains on Saturday and seven on Sunday. Pricing on this Regional Rail line depends on destination, length of ride, time of day and day of the week. One-way fares start at $4 for one zone and go up to $8.25.
Offering more routes, Wilmington has a higher transit score of 54. The compact city center and walkable neighborhoods make Wilmington an easier town to navigate on foot or by bike, as well. Wilmington has a respectable walk score of 62 and a good bike score of 46. Between DART and having a bike, it’s necessary to have a car in Wilmington.
Delaware healthcare prices
What you’ll pay for healthcare varies widely around the state. Some cities like Dover have lower average healthcare costs that are beneath the national average. In other cities, healthcare costs exceed the national average. However, it’s important to note that it’s very difficult to determine accurate healthcare averages. Based on factors like pre-existing conditions or insurance premiums, healthcare costs vary on a person-by-person basis. So, just because the average cost for a doctor’s visit in Dover is $90, that doesn’t mean it will be the same for everyone.
With that in mind, Dover is the least expensive city for general healthcare costs. Here’s what it costs to go for a check-up at the doctor in these two cities:
- Dover: $90
- Wilmington: $125.50
These rates reflect how Dover and Wilmington compare to the national average in terms of healthcare costs:
- Dover is 6.7 percent below the national average
- Wilmington is 14.4 percent above the national average
It’s also more expensive to go to the dentist in Wilmington, costing $150. In Dover, that annual cleaning and exam will set you back $103.67. However, Wilmington is a great small city for healthy lifestyles. So, while it’s more expensive, there’s improved overall health.
In general, though, Delaware ranks well for the quality of its healthcare. Locals enjoy both good access to healthcare resources, as well as good quality care.
Delaware goods and services prices
Along with housing and groceries, it’s also important to consider other regular purchases as part of a monthly budget. These include things like getting a haircut or buying over-the-counter medicine.
Overall, the cost of miscellaneous goods and services around Delaware is higher than the national average:
- Dover is 7.6 percent above the national average
- Wilmington is 10.9 percent above the national average
You’ll be paying more for most goods and services in Wilmington. Getting your haircut in Wilmington costs $26.33 compared to $19.50 in Dover. But if you want to go out to see a movie, tickets cost more in Dover at $12.49 a pop. In Wilmington, you’ll be paying around $11.78.
Delaware is a great place to raise a family. Its cities are safe with an abundance of fun things to do. It’s also easy to get out into nature in nearby forests and along Delaware Bay. If you’re considering raising a family in Delaware, childcare costs are another thing to consider.
With its bustling corporate culture, childcare is in high demand in Wilmington. That means it’s much more expensive than elsewhere in the state. You can expect to pay around $1,120 for a full month of private preschool or kindergarten in Wilmington. But in Dover, you’ll only be paying around $980 for the same type of childcare per month.
Taxes in Delaware
Another plus side of living in Delaware is that it’s one of the few states with no sales tax. That means that no matter where you live in the state, you’ll pay $0 in sales tax. Spending $1,000 on delicious Bobbie sandwiches for a family beach outing? You’ll be paying nothing extra in tax.
Delaware does impose a gross receipts tax on businesses, though. If you’re planning on opening or operating a business in Delaware, that’s something to know.
As we saw above with Wilmington being a hub for corporations, Delaware is generally a good place to live tax-wise. Income taxes here range from 2.2 percent to 6.6 percent, depending on income.
How much do I need to earn to live in Delaware?
Although the cost of living in Delaware is generally above the national average, it’s not unreasonably high. But how much does a resident need to earn to comfortably live here? To determine this, experts use the 30 percent rule. While not a strict rule, it’s recommended that you only spend 30 percent of your gross monthly income on housing. The reasoning is that while housing takes a decent chunk of your monthly budget, you need enough left over for other necessities and lifestyle purchases.
The average monthly rent in Delaware is $1,607. To only spend 30 percent of your gross monthly income on rent, you’d need to make around $5,356 per month. That comes out to $64,272 annually. Since Delaware’s median household income is $69,110, most residents can comfortably afford housing.
Since average rents do vary by city, you can use this rent calculator to determine what part of Delaware you can afford to live in.
Living in Delaware
From no sales tax to the reasonable cost of living, there are many benefits to living in Delaware. While the overall cost of living is above the national average, it isn’t unreasonably high. So, if you want to live in an East Coast state with access to beaches, big cities and charming small towns, Delaware could be the answer.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com