Delaware is a great place to live. This tiny state packs a mighty punch—no sales tax, low property taxes, and homes averaging $364K, well below the US median of $438K. Delaware stretches your dollar with utility costs 1% below and healthcare 5.6% below the national average.
Picture weekends at Rehoboth Beach, feasting on blue crab cakes in a local seafood shack, or paddling across the calm waters of Delaware Bay—all without Florida’s humidity or New Jersey’s sky-high property taxes. Whether you’re buying your first home, planning retirement by the ocean, or working remotely, Delaware’s mix of affordability and coastal charm makes it a serious contender for your next move.
Cost of Living in Delaware: How Affordable Is It Really?
The cost of living in Delaware is just 2% above the national average, which makes it one of the most affordable states in the US. This is balanced by tax perks and housing deals. Everyday expenses stay reasonable, even with recent economic shifts.
● Housing Costs
Housing in Delaware offers a mixed picture for residents. Buying a home is 7% lower than the national average, with the median price at $364K. However, renting comes at a premium, averaging 9% higher than the national average. To get a clearer picture of affordability, use Delaware’s mortgage calculator on Houzeo, America’s best home buying and selling website. Get an estimate of monthly expenses, as they can often be more competitive than those in neighboring states like Maryland or New Jersey.
● Grocery Expenses
For a family of four, groceries in Delaware cost about $127 per week. This figure aligns closely with national averages, ensuring predictable food budgets for households. With costs remaining steady, families can plan their monthly grocery spending without worrying about large fluctuations.
● Gas Prices
Delaware residents enjoy lower commuting costs, thanks to gas prices averaging $3.07 per gallon as of August 2025. This is notably lower than the national average of $3.41. The difference is especially beneficial for those living in suburban or rural areas who rely heavily on driving.
● Utility Bills
Utilities for a typical household in Delaware average around $397 per month, covering electricity, heating, and internet. The state’s mild climate plays a role in keeping extreme heating costs 1% lower compared to the national average.
● Healthcare Costs
Healthcare in Delaware is 6% above national averages, with a primary care visit in Wilmington averaging $446. However, health insurance premiums are generally lower than those in nearby states like New Jersey or Pennsylvania, helping balance out the overall healthcare costs for residents.
Delaware’s Housing Market: A Buyer’s Advantage in 2025
The housing market in Delaware continues to show signs of strength, with certain dynamics giving buyers modest leverage in early 2025. While home prices are rising, factors like inventory, days on market, and sale flexibility are making the market more navigable for those who are prepared.
- Median Sale Price: The current median home price in Delaware is $364K as of August 2025, with a 1.2% year-over-year decrease.
- Homes Sold: Year over year, the number of homes sold has increased by 2.8%, indicating brisk sales despite rising prices.
- Inventory / Supply: New listings have risen around 13% YoY as of January 2025, but inventory remains tight—about 2 months of supply.
- Days on Market: Delaware homes are spending a median of 33 days on the market before going under contract.
- Sale-to-List Ratio: The sale-to-list ratio is approximately 99%. This means most homes sell just slightly below the asking price.
- Price Flexibility: About 28% of listings are experiencing price drops.
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What Are the Pros and Cons of Living in Delaware?
Delaware offers strong advantages, but it also comes with trade-offs. Here’s a balanced look.
Pros:
- No sales tax: This policy boosts purchasing power for residents and businesses.
- Proximity to major metros: Philadelphia, Baltimore, and Washington, D.C., are within a short drive.
- Affordable Coastal Living: Rehoboth Beach and Bethany Beach offer ocean access without Florida or California price tags.
- Low property taxes: The effective rate averages 0.56%, well below the US average of 0.99%.
Cons:
- Higher Than Southern Markets: Delaware’s median home price is $364K. This is notably higher than Alabama’s $300K and Mississippi’s $266k median house price.
- Traffic Congestion: Delaware drivers spend, on average, 30.8 hours per year stuck in traffic congestion, placing the state among the worst states in terms of urban congestion.
- Limited public transit: Car dependency remains high outside Wilmington and Newark.
What Are the Best Places to Live in Delaware in 2025?
Delaware’s small size offers diverse options for different lifestyles. Here are the top choices for 2025:
1. Wilmington
As of August 2025, the median home price is approximately $220K, with neighborhoods like The Highlands and Little Italy offering a mix of classic rowhomes and modern condos. The city boasts a vibrant arts scene, with venues like The Queen Theatre and the Delaware Art Museum, and is home to major employers such as JPMorgan Chase and DuPont.
2. Dover
The median home price is $290K, with areas like Downtown Dover featuring colonial-style homes and tree-lined streets. Dover is home to the Dover Air Force Base and hosts events like the Firefly Music Festival. The city’s historic district offers charming shops and eateries, making it a walkable and community-focused area.
3. Newark
Rehoboth Beach is a popular coastal destination known for its vibrant boardwalk, boutique dining, and upscale lifestyle. The median home price is $434K, with sought-after neighborhoods like North Shores and Henlopen Acres offering exclusive beachside living. The city also boasts a lively arts scene, highlighted by the Rehoboth Beach Independent Film Festival held every November.
4. Rehoboth Beach
Rehoboth Beach offers upscale coastal living with a vibrant boardwalk and boutique dining. The median home price is $800K. The city is also known for its lively arts scene, including the Rehoboth Beach Independent Film Festival held every November.
Is Delaware Worth the Move?
Delaware isn’t just a great place to live—it’s a smart financial decision. The state’s housing market continues to show steady growth, with a healthy increase in inventory and moderate price growth. This makes it an appealing market for both buyers and investors.
On top of its growing housing options, Delaware’s tax advantages make it even more attractive. The state offers a unique combination of no sales tax, low property taxes, and exemptions on Social Security and retirement income. These benefits make Delaware especially appealing for retirees who want to stretch their savings. Plus, Delaware’s Senior Property Tax Credit provides up to $500 in savings for eligible homeowners, offering added financial relief.
With its combination of an expanding housing market and enticing tax benefits, Delaware stands out as one of the smartest places to buy a home in October 2025. Whether you’re a first-time homebuyer or a retiree looking for financial flexibility, Delaware is a state that delivers both value and lifestyle.
