Cost of Living in Southwest Harbor, Maine

Published: September 17, 2020 6:11 pm

Cost of Living in Southwest Harbor, Maine

Southwest Harbor is a Census-designated place in Hancock County, Maine, with a population of 757. The total cost of housing, food, child care, transportation, health care, taxes, and other necessities for a single adult in Southwest Harbor is $39,984 a year — about the same as the annual cost of living for Maine of $39,633 and greater than the national figure of $38,433.

Using cost of living data from the nonprofift think tank Economic Policy Institute, 24/7 Wall St. estimated the cost of living in Southwest Harbor and over 29,000 other cities and towns in the US.

Housing Costs in Southwest Harbor, Maine

Housing is one of the largest components of cost of living. In Southwest Harbor, the median home value is $347,700, greater than the national median home value of $204,900.

Renting is a sometimes lower cost alternative to homeownership. In Southwest Harbor, some 44.40% of occupied homes are rented, greater than the 36.2% national renter rate. The typical renter in Southwest Harbor spends $408 a month on housing, greater than the $1,023 national median monthly rent.

In addition to home value, one of the largest determinants of housing affordability is area income. While nationwide the price of a typical U.S. home is 3.4 times the $60,293 U.S. median household income, housing affordability ratios range from approximately 1.0 in the least expensive cities to more than 10.0 in the country's most expensive markets. In Southwest Harbor, the median household income is $44,250, 7.9 times the median home value.

Transportation Costs in Southwest Harbor, Maine

Transportation can also be a significant component of cost of living. In Southwest Harbor, 60.30% of commuters drive to work, compared to 85.5% of commuters nationwide. An estimated 46.70% of workers commute to jobs outside of Southwest Harbor, a larger share than the 43.7% share of commuters nationwide who live and work in different cities. The average commute in Southwest Harbor is 10 minutes long, compared to the 26.6-minute average commute nationwide. Taking into account the cost of gas, as well as public transit and car maintenance, the EPI estimates that a single person in Southwest Harbor spends $11,293 a year on transportation, more than the national average of $9,760.

Health Care Costs in Southwest Harbor, Maine

Out-of-pocket health care costs and insurance premiums — assuming at least a basic level of health insurance coverage — are far higher than they are on average nationwide in Southwest Harbor and also well above what they are across Maine as a whole.

For a single adult living in the area, average health care costs come out to $5,677 per year, compared to an average of $4,467 across Maine and $4,266 nationwide.

Child care Costs in Southwest Harbor, Maine

For families with children, child care adds thousands of dollars to overall annual spending. In Southwest Harbor, the average annual cost of child care for two children — one 4 year old and one 8 year old — is $10,654, about $2,200 less than the comparable average of $12,824 across all of Maine. Meanwhile, across the U.S. as a whole, childcare expenses for two children averages $15,853 per year.

Food Costs in Southwest Harbor, Maine

Food is another every day expense that has a significant impact on overall cost of living. Data from the U.S. Department of Agriculture shows that the cost of food varies from city to city and town to town.

In Southwest Harbor, a single adult spends an average of $3,805 on food annually, and a family of four spends $10,989 on average. For context, average annual food expenditure across Maine and the U.S., respectively, are $3,653 and $3,240 for a single adult, and $10,551 and $9,354 for a family of four. These estimates are calculated for a nutritionally adequate diet of food purchased at a grocery store for at-home preparation.

Taxes in Southwest Harbor, Maine

Few expenses vary as much from city to city and town to town as taxes. Accounting for state and federal income taxes, as well as Social Security contributions and Medicare payroll taxes, the average adult working in Southwest Harbor, Maine pays $7,047 annually — closely in line with the statewide average of $6,964.

It is important to note that these calculations do not include other common taxes such as property, sales, and excise taxes. Accounting for these taxes, while excluding taxes levied at the federal level, Southwest Harbor residents live in a state with a modest average tax burden. Per capita state tax collections in Maine total $3,295 per year, compared to the $3,151 average across all states.

Methodology

To estimate the cost of housing, food, transportation, health care, child care, taxes, and other necessities, 24/7 Wall St. assigned county-level Economic Policy Institute data to cities, towns, villages and Census-designated places based on boundary definitions from the U.S. Census Bureau. For places that span multiple counties, data was aggregated based on the percentage of boundary overlap.

Cost of Living in Southwest Harbor, Maine