Cost of Living in Delaware: Average Rent, Groceries, Utilities, and More

Delaware, known for its celebrated for its scenic coastlines, tax-friendly policies, and small towns, has a unique cost of living. As one of the smallest states in the U.S., its proximity to major metropolitan areas like Philadelphia, Baltimore, and Washington, D.C., adds value for those seeking an affordable lifestyle within reach of urban amenities. Whether you’re drawn to the historic streets of Dover, the beach vibes of Rehoboth, or the suburban appeal of Wilmington, understanding Delaware’s housing market, utility costs, and overall affordability is key to planning your budget in the First State.

Housing costs: Median home prices and average rent in Delaware

Housing costs in Delaware strike a balance between coastal and suburban appeal, with some areas leaning toward the pricier side. The average rent in Delaware is $1,665 per month, slightly above the national average of $1,645. For those considering homeownership, the median home sale price in Delaware is $448,995, exceeding the national median of $428,000.

Expensive cities like Rehoboth Beach and Lewes drive up housing prices due to their desirability as vacation destinations and access to the Atlantic coastline. These areas cater to those looking for luxurious homes and high-end rental properties, often with a beachside premium. In contrast, cities like Dover and Seaford provide more affordable options, with rental prices and home costs below the state average.

Delaware housing costs: Average rents and median home sale prices

Housing costs in popular cities in Delaware

Wilmington

Wilmington, the largest city in Delaware, is very historical and full of energy. With an average rent of $1,754 for a one-bedroom apartment and $2,242 for a two-bedroom, it’s among the pricier areas for renters. However, the median home sale price of $246,000 provides a more affordable entry point for buyers compared to other urban centers in the region. Residents enjoy easy access to cultural attractions like the Delaware Art Museum and the Riverfront Market, along with a bustling restaurant scene. Its location also makes it a commuter-friendly hub, offering quick access to Philadelphia and other nearby cities.

Read more: 11 Pros and Cons of Living in Wilmington

Dover

Dover, Delaware’s capital city, delivers small-town charm and affordability. Renters can expect to pay $1,375 on average for a one-bedroom and $1,622 for a two-bedroom apartment, while the median home sale price stands at $320,000. The city provides a balanced lifestyle, with a quiet, community-oriented atmosphere complemented by easy access to Delaware’s scenic countryside.

Newark

Newark offers a vibrant and youthful energy, thanks to the University of Delaware’s presence at its heart. The city’s average rent is $1,471 for a one-bedroom and $1,625 for a two-bedroom, with a median home sale price of $370,000. Downtown Newark is bustling with shops, eateries, and entertainment venues, all within walking distance, while nearby parks and trails provide a refreshing escape into nature.

Middletown

Middletown, known for its suburban elegance and growing community, is one of Delaware’s most sought-after areas. With average rents of $1,795 for a one-bedroom and $1,945 for a two-bedroom, it caters to those seeking modern amenities and upscale living. The median home sale price of $450,000 reflects its desirability for spacious homes. Middletown’s charm lies in its mix of new developments, community, and proximity to outdoor attractions like Lums Pond State Park. 

The cost of utilities are moderate, varying by region

The cost of utilities in Delaware are moderate compared to the national average, though it can vary depending on the season and location. Monthly energy bills average around $130, which is slightly lower than the national average, but heating and cooling costs may spike during extreme weather. Water and sewer services typically add another $50–$90 per month, depending on usage and household size. Internet and cable services are comparable to national rates, averaging $134 monthly, depending on the provider and plan.

Energy bill comparisons: Delaware cities vs. nationwide average

Expect to pay 7% more on groceries than the average person

Grocery costs in Delaware tend to be slightly higher than the national average, with residents paying about 7% more per month for essentials. This means a single person might spend approximately $380–$400 monthly on groceries. The state’s proximity to major metropolitan areas and higher transportation costs contribute to the increased prices for fresh produce, dairy, and meat. Shopping at local markets, such as the Newark Farmers Market, or taking advantage of bulk retailers like Costco, can help mitigate expenses.

Transportation costs are on par with national averages

Transportation costs in Delaware are generally manageable, with gas prices averaging $2.91 per gallon, slightly below the national average of $3.03. However, residents in the southern part of the state, such as in Sussex County, may encounter higher fuel costs due to fewer service stations and increased transportation demand in rural areas. Public transportation options, including DART buses, provide an affordable alternative for those commuting within cities or to neighboring states. Monthly bus passes cost around $65, making it a budget-friendly choice for frequent travelers. Whether you drive or rely on public transit, Delaware’s compact size ensures that commuting distances are shorter and transportation expenses remain reasonable overall.

Higher health care costs can be expected 

Healthcare costs in Delaware tend to be higher than the national average, reflecting the state’s small size and proximity to major metropolitan areas. Residents can expect to pay more for routine services such as doctor’s visits, hospital stays, and prescriptions compared to neighboring states. For instance, In Dover, the cost for a doctors visit is around $154.75 compared to the national average of $142.74. Additionally, the state’s limited healthcare provider options, especially in rural areas, can contribute to higher prices. 

Delaware has some of the lowest taxes in the country

Delaware is known for its favorable tax structure, particularly for individuals and businesses. One of the most notable benefits is that the state does not impose a sales tax, which can significantly reduce the overall cost of living. However, Delaware does have a state income tax, which ranges from 0% to 6.6% depending on income levels. The state’s property taxes are also relatively low compared to the national average, with an effective property tax rate of 0.58%. 

How much do I need to earn to live in Delaware?

To live comfortably in Delaware while adhering to the 30% rule, you should aim to spend no more than 30% of your gross monthly income on housing. For renters, with the average one-bedroom apartment in Delaware costing $1,665 per month, you would need to earn at least $5,550 per month, or about $66,600 annually, to stay within the 30% guideline. However, you want to take into account the other varying expenses you’ll make like groceries and taxes.

If you’re considering buying a home, the median home sale price in Delaware is $448,995. Assuming a 20% down payment and a 7% interest rate on a 30-year mortgage, your monthly mortgage payment would be approximately $2,530. To stay within the 30% rule, you would need to earn at least $8,433 per month, or around $101,200 annually, before taxes. 

Methodology

Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin. Data from Redfin’s Cost of Living Calculator, November 2024