Anne Arundel County, centrally located in Maryland and home to the state’s capital, Annapolis, offers an exceptional quality of life and a vibrant business environment.
Known as the “land of pleasant living,” the county provides a unique blend of suburban tranquility with easy access to Baltimore, Washington D.C., and the Chesapeake Bay.
Residents enjoy a mild climate with all four seasons, thriving natural beauty, and a skilled, highly educated workforce.
Anne Arundel County’s prime location and superior lifestyle make it a desirable place to call home for business or personal living. However, this exceptional quality of life comes with a higher cost of living.
The area’s overall cost of living is 114.7, 2.6% higher than the Maryland average and 14.7% higher than the national average.
Understanding Anne Arundel County, Maryland’s cost of living is undoubtedly essential to being prepared and making wise financial decisions.
Cost of Housing
Housing is the highest percentage in Anne Arundel County’s cost of living.
Buying a house in Anne Arundel County is notably higher than the national average, with an index score of 140.7, about 40% more expensive. As of September 2024, the county is considered a seller’s market, with property listings ranging from $850,000 to $20 million.
The average home value in the county is $487,483, reflecting a 2.6% increase over the past year. This indicates that property values continue to rise and typically go to pending status within 7 days, which means homes sell faster. Note that home prices still vary depending on the neighborhood.
For those who prefer to rent, the median rental price in Anne Arundel County is $2,251 per month. If you’re seeking senior living communities, Anne Arundel offers various options, ranging from more affordable choices around $290,000 to high-end luxury communities that cost millions.
Utility Costs
Utility costs in Anne Arundel have a cost of living index of 107.6, 8% higher than the national average. These costs typically include electricity, natural gas, water, and internet services.
Here’s a breakdown of the expected utility costs in Anne Arundel to help you plan.
| Utility | Average Bill |
|---|---|
| Electricity | $235 |
| Gas | $3 |
| Cable and Internet | $90 |
| Phone Bill | $213 |
| Water | $6 |
| Sewer | $13 |
Transportation Expenses
Transportation costs in Anne Arundel County have a cost index of 101.9, which is just 2% higher than the national average. Annapolis, the county seat, provides different public transportation options, such as buses, shuttles, and rideshare services.
Annapolis Transit runs multiple bus routes across the city, with fares ranging from $2.00 per ride to $40 for a monthly pass. Additionally, the Annapolis Circulator provides a free shuttle service. You can also use a car to get around the county. However, you must factor in parking fees and car-related expenses. Garages and metered street parking in the county usually cost between $2 and $4 per hour.
Car ownership expenses, including insurance, registration, and maintenance, can vary depending on the vehicle type and the owner’s driving history. Fuel and possible toll fees may also impact transportation expenses for those commuting to nearby cities like Baltimore or Washington, D.C.
Food and Grocery Expenses
Aside from house expenses, food or grocery costs are another essential factor to consider when determining the cost of living in Anne Arundel County.
Food costs in Anne Arundel have an index score of 105.3, slightly higher than the national average.
There is a wide range of dining options, from casual cafes to fine-dining restaurants, and the cost depends on the restaurant type and menu. On the other hand, grocery prices can vary based on the store and the type of products you buy.
Popular grocery stores in the area include Giant, Safeway, and Trader Joe’s. For budget-friendly options, consider shopping at discount stores like Aldi or taking advantage of coupons and weekly sales to reduce grocery expenses.
You can better manage your food expenses in Anne Arundel County by carefully planning your shopping and dining.
| Grocery Products / Type of Dining | Average Cost |
|---|---|
| Casual Restaurants | $15 |
| Upscale Restaurants | $50 |
| Bakery Products | $4 |
| Dairy Products | $5 |
| A dozen of eggs | $7 |
| Fruits and Vegetables | $4 |
Healthcare Cost
Healthcare in Anne Arundel County has an index score of 83.1, meaning it is relatively affordable compared to the national average. However, the county’s healthcare costs can vary based on your insurance plan and individual medical needs.
Below is a general overview of the expected average healthcare costs in Anne Arundel County.
| Health Care | Average Cost |
|---|---|
| Doctor’s Visit | $132.42 |
| Dental Cleaning | $110.53 |
| Rx Drug | $233.37 |
| Veterinary Visit | $71.59 |
To explore what the county offers to give you and your furry friends an active and healthy living, you can visit these lists of health and fitness establishments in Anne Arundel County, from gyms to pet clinics!
Cost of Living Comparison
Anne Arundel vs. Howard County
Although both are expensive places to live, Howard County has a higher overall cost of living than Anne Arundel County. The cost of living in Howard County is generally higher than in Anne Arundel County across multiple categories. Howard County’s overall cost of living index is 127.9, compared to Anne Arundel’s 114.7.
The most significant difference is in housing, with Howard County’s housing cost index at 172.8, much higher than Anne Arundel’s 140.7. The average home value in Howard County is $609,913, while Anne Arundel’s average home value is $487,483.
Homes sell quickly in both areas, with properties in Howard County typically going to pending status in 5 days, compared to 7 days in Anne Arundel. Additionally, Howard County has higher costs in utilities, groceries, transportation, healthcare, and miscellaneous expenses, making it overall more expensive to live in than Anne Arundel County.
| Category | Anne Arundel County | Howard County |
|---|---|---|
| Overall | 114.7 | 127.9 |
| Housing | 140.7 | 172.8 |
| Utilities | 107.6 | 109.1 |
| Groceries | 105.3 | 107.6 |
| Health | 83.1 | 86.5 |
| Transportation | 101.9 | 108.4 |
| Miscellaneous | 127.4 | 151.7 |
Anne Arundel vs. Maryland
The cost of living comparison between Anne Arundel County and the state of Maryland shows that Anne Arundel is slightly more expensive overall. Anne Arundel’s overall cost of living index is 114.7, while Maryland’s average is 111.8.
Housing is a significant factor, with Anne Arundel’s housing index at 140.7, higher than Maryland’s 124.1. The average home value in Anne Arundel County is $487,483, notably higher than Maryland’s state average of $419,828, reflecting higher housing costs.
In addition to housing, other daily expenses like utilities, groceries, and healthcare in Anne Arundel are slightly above Maryland’s average, which adds to the overall cost of living. Transportation costs are lower in Anne Arundel than in the rest of the state, but these savings don’t outweigh the higher housing costs.
Because housing is such a big part of people’s expenses, the high home prices make Anne Arundel County’s cost of living higher than that of other areas in Maryland.
| Category | Anne Arundel County | Howard County |
|---|---|---|
| Overall | 114.7 | 111.8 |
| Housing | 140.7 | 124.1 |
| Utilities | 107.6 | 105.6 |
| Groceries | 105.3 | 105.2 |
| Health | 83.1 | 84.2 |
| Transportation | 101.9 | 119.3 |
| Miscellaneous | 127.4 | 112.5 |
Tips for Managing Cost of Living
Managing the cost of living in Anne Arundel County can be challenging due to the higher housing and general living expenses.
Create a Detailed Budget
One of the best strategies for managing these costs is to create a detailed budget. Start by calculating your monthly income, including wages, benefits, or other sources.
Then, subtract your recurring expenses, such as rent or mortgage payments, utility bills, and other crucial things you must pay.
Next, deduct your spending on essentials like groceries, fuel, and other necessities. After you’ve accounted for these, you’ll have a clearer picture of how much money is left.
Increase Remaining Income
To increase your remaining income, look for ways to cut down on unnecessary expenses. Begin by identifying other recurring costs. These are things you regularly spend money on, such as subscriptions.
Writing these down can help you track them more easily. You may find areas where minor adjustments, like canceling a subscription or reducing dining out, can save you money in the long run.
Additionally, consider making lifestyle changes that align with your financial goals. One example is choosing less expensive grocery items.
Monitoring of Finances
By consistently monitoring your finances, making thoughtful cuts, and finding ways to save, you can better manage the higher cost of living in Anne Arundel County.
Wrap Up
Anne Arundel County offers a high quality of life in a suburban area with easy access to key metropolitan areas and natural beauty. However, it comes with a higher cost of living than Maryland’s and national averages.
The primary contributor to these higher expenses is housing, which can be challenging; however, by carefully managing your budget and making wise financial decisions, living in this desirable county is possible.
Ready to experience what Anne Arundel has to offer? Do not hesitate to contact us today! We will gladly assist you in your inquiries or in finding your dream home in the land of pleasant living. You may reach us by calling 443-360-7111.
Frequently Asked Questions
1. Is Anne Arundel County expensive to live in?
Anne Arundel County has a higher cost of living with an index score of 114.7, about 14.7% more expensive than the national average.
2. How do housing costs compare to Baltimore?
Housing in Anne Arundel County is generally more expensive than in Baltimore. While the average home value in Anne Arundel is $487,483, homes in Baltimore have an average cost of $186,503. The higher cost in Anne Arundel is driven by its desirable location, suburban lifestyle, and proximity to major cities.
3. What are the average utility costs in the area?
Utility costs in Anne Arundel County are slightly above the national average, with a cost of living index of 107.6. On average, a single person spends $1,430 on utilities and rent in the county, while a family of four spends about $2,311.
4. How does public transportation affect the cost of living?
Public transportation in Anne Arundel County is a massive part of the cost of living, especially for those traveling or working nearby. Bus fares are relatively affordable, around $2, and monthly passes are available for $40. Additionally, free shuttle services, like the Annapolis Circulator, can help residents save on transportation costs.
5. What are the best ways to save on living expenses in Anne Arundel County?
You can focus on budgeting and cutting unnecessary costs to save on living expenses. Shopping for groceries at discount stores, reducing dining out, and using public transportation can all contribute to lowering expenses.
