Thinking about settling down or buying a second home in Highlands, NC? You’re not the only one. This mountain town draws folks from all over for its fresh air, scenic views, and small-town lifestyle. But before packing your bags or scheduling that showing, you probably want to know one thing: what does it actually cost to live here?

Cost of living isn’t just about housing. It includes everything from taxes to grocery prices and even how much you'll spend just getting around. Whether you’re considering a full-time move, part-time retreat, or retirement relocation, knowing the ins and outs of your monthly expenses is key to planning your life here in Highlands.

Let’s walk through what living in Highlands might look like from a financial perspective.

Breaking Down the Cost of Living in Highlands, NC

Highlands offers a slower pace and stunning setting, but like anywhere, those perks come with a price tag. Here are the major cost categories you should be thinking about.

Housing

• Home Prices
  Highlands is a desirable place to live, and that demand has kept housing prices higher than many surrounding areas. Whether you’re looking at a mountain cabin or something with modern updates, don’t expect budget pricing. You’ll find a range of options, but most homes are priced above the state average.
  
  
• Renting vs. Buying
  Long-term rentals can be limited, and short-term vacation rentals often dominate the market. If you’re not quite ready to buy, the payments might be higher than you'd expect than you’d expect for a small town, simply due to limited availability and tourist demand.
  
  

Property Taxes

• How Taxes Compare
  North Carolina generally has moderate property taxes, and Macon County keeps rates fairly manageable. However, because home prices are higher in Highlands, your actual tax bill might be more than what folks pay elsewhere in the state.
  
  
• Budgeting for Annual Bills
  Property taxes come due each year, and while they’re not excessive, they should be part of your annual planning, especially if you’re buying a second home or investment property.
  
  

Utilities

• Electricity and Heating
  Since Highlands sits in the mountains, it sees colder winters than much of North Carolina. That means you’ll likely spend a bit more on heating than you would elsewhere. If your home uses propane or oil heat, factor that into your monthly budget.
  
  
• Water, Trash, and Internet
  Utility services are available, though not always from the providers you might be used to in larger cities. Some properties use well water or private septic systems, which can mean fewer monthly bills but potentially more maintenance.
  
  

Groceries and Essentials

• What to Expect at the Checkout Line
  The Highlands have a few grocery stores and markets, but options are somewhat limited compared to urban areas. This often means slightly higher prices and fewer discounts.
  
  
• Stocking Up Smart
  Many residents make occasional trips to nearby towns like Franklin or even Asheville for larger grocery hauls or specialty items. It’s something to keep in mind if you’re used to big-box convenience.
  
  

Transportation

• Gas and Vehicle Expenses
  You’ll need a car here. Public transit isn’t really a thing, and the town’s layout and terrain make walking or biking impractical for everyday errands. Fuel prices are fairly average, but winter driving may mean added maintenance costs for tires or AWD vehicles.
  
  
• Getting to and From Highlands
  It takes time to get in and out of the area, especially if you need to travel frequently. The closest airports are a few hours away, and winding mountain roads are the norm. That isolation adds a bit to the overall cost, whether in time, fuel, or wear and tear.
  
  

State Income Tax

• North Carolina's Flat Tax Rate
  The state uses a flat income tax rate, which is relatively modest compared to many states. If you’re moving from a high-tax state, you might even see some savings here. But retirees should double-check how their income sources are taxed to avoid surprises.
  
  
• Impact on Retirees and Remote Workers
  Many new residents are retirees or remote workers. Knowing how your income will be taxed, and if any exemptions apply, can help you plan ahead more confidently.
  
  

Budgeting for Life in Highlands

Living in Highlands, NC isn’t about chasing a bargain. It’s about lifestyle, quiet mornings, scenic drives, fewer crowds, and fresh mountain air. But that lifestyle does come with costs that are sometimes higher than you might expect in a rural setting.

If you’re considering making the move, it helps to go in with your eyes open. Look at your full financial picture, think about what matters most to you, and talk to people who live here year-round.

At Berkshire Hathaway HomeServices Meadows Mountain Realty, we’ve helped families and individuals find the right homes and make smart moves in the Highlands area for years. We understand the market, and we know how to guide our clients through every aspect, from budgeting to closing.

Let’s sit down together, talk through what living in Highlands really looks like, and find a property that fits your life and your budget.