Higher pay scales have resulted in New Castle County edging out Kent and Sussex’s lower cost of living when it comes to purchasing power.
A new study from financial technology company SmartAsset compared cost of living to income for the three counties in coming up with a purchasing power index.
The nearly $3,000-a-year advantage in the cost of living in Kent and Sussex counties could not offset the nearly $11,000 gap in the median income, the report indicated.
Rank | County, State | Cost of Living | Median Income | Purchasing Power Index |
---|---|---|---|---|
1 | New Castle, DE | $42,223 | $65,476 | 70.22 |
2 | Kent, DE | $38,950 | $54,976 | 63.91 |
3 | Sussex, DE | $38,874 | $53,751 | 62.61 |
The income gap has long been an issue in the state’ s southernmost counties.
Economic development efforts ranging from the state’s Strategic Grant program to improved broadband internet access aim to bring higher-paid jobs to the two countries.
At the same time, home prices in Kent and Sussex are sometimes equal or higher to the figures in New Castle County. Both Kent and Sussex are seeing higher population growth, often from those at or near retirement.
Delaware offers tax breaks for retirees that along with low property taxes that in the case of states like New Jersey can amount to the equivalent of a mortgage payment.
New Castle County has seen lower population growth and home price gains that have been below the national average, in part, due to the downsizing of higher-paying corporate jobs at DuPont, AstraZeneca and others.
Despite the negative trends, income remained above figures for Kent and Sussex, the SmartAsset report indicated.