The Unexpected Value Of $100 If You Live In Pennsylvania

In Pennsylvania, $100 holds the purchasing power of $102.50, which means the residents get 2.50% value for their money compared to other parts of the United States. That's according to data from GOBanking Rates, which found the state of Pennsylvania offers relatively affordable housing, utilities, and taxes that keep everyday expenses more manageable than other places, and thanks to that the people can afford to enjoy a lower cost of living than the national average. Little wonder, one of America's most affordable places to retire is a quaint Pennsylvania town.

Nationally, $100 averages its face value, but it doesn't amount to much purchasing value in states like Hawaii, where its purchasing power is equivalent to $91.39 or New York, where it equals $92.37. Pennsylvania's cost-efficiency places it on the same ranking among states like Maine with $102.90 spend value in $100, and Texas at $102.83 spend value.

There is a reason for this spending difference. When compared to urban areas, residents in rural counties sometimes experience higher purchasing power due to lower costs of living, housing, and other expenses. In Pennsylvania, this phenomenon is easily observed in counties like Cambria and Blair, where the lower cost-of-living stretches the value of the $100, beyond the $102.50 face value enjoyed by the people living in its cities.

Based on the recent U.S. Census Bureau data as reported via GoBankingRates, the median household income earnings across all 50 states ranges from $54,915 to $101,652. The state median household income in Pennsylvania is $76,081, which places it slightly below the national median of $78,283.50, when calculated using the GoBankingRates averages. A Pennsylvania household earning $76,000 plus spends roughly 23.7% of its income on house rents, hence this frees up funds for groceries and savings.

Being able to afford a house also plays a central role in this context. The typical Pennsylvanian home costs $272,299, which is 34% less than the U.S. average of $412,300. Furthermore, in rural counties like Chester County or Lackawaana County (Scranton,) the prices drop below $200,000, while Philadelphia's metro area averages $275,000. Even in the cities where the cost of living is higher, Pennsylvania's property taxes of 1.41% median rate are still far lower than that of neighboring states like New Jersey, which is at 2.23%.

Annual living expenses also tend to tilt in favor of the residents. Utilities run 2.63% higher than the national average, but groceries cost less than the national average, which tips the score board. A Pennsylvania family earning $76,000+ that spends $2,989.08 annually on groceries, would spend around $4,006.56 on the same amount of groceries, if they reside in a high-cost state like Hawaii.

Pennsylvania's above-average purchasing power shapes how residents manage money. Currently, Pennsylvania has several favorable policies, like the targeted property tax relief for seniors through programs like the Property Tax/Rent Rebate Program. They hand out up to $1,000 if you own or rent homes. Pennsylvania also has the Homestead Exemption that lowers how much of your home's value gets taxed, plus, there is chance the state could raise its minimum wage to $15, which could help lower-income earners.

At the same time, people in Pennsylvania are getting older — the average age here is about 42, as opposed to the nationwide median age of 38+. That could mean higher healthcare costs down the road. Still, the growth in remote work could attract younger families to its affordable rural areas. In conclusion, Pennsylvania's utilities run a bit above national average, while the healthcare spending cost is considerably lower than the national average, but proactive investment in broadband and renewable energy could cement the state's cost edge and balance the board. Also, you will still need smart shopping habits to reside comfortably in the state.