Rehoboth Beach is considered one of the most expensive places to live in Delaware and carries a significantly higher cost of living compared to the national average. As a premier Mid-Atlantic resort town, real estate prices are the primary driver of these costs, with median home values often exceeding $700,000 to $1 million, particularly for properties within walking distance of the ocean or the boardwalk. Beyond housing, residents face "resort pricing" at local grocery stores, restaurants, and for various services, especially during the peak summer months when demand spikes. While Delaware’s lack of a state sales tax provides some financial relief, property taxes in the coastal zones can be higher than in inland Sussex County. Many retirees and professionals are drawn to the area for its high quality of life and beautiful scenery, but the barrier to entry is high. For those looking to live in the area on a more modest budget, many choose to reside in neighboring communities like Lewes or Milton, which offer slightly more affordable housing while remaining close to the beach amenities.