BOZEMAN – Though it might seem far-fetched given ongoing affordable housing debates, Bozeman is a relatively affordable place to live, at least for professional and managerial households as compared to 272 other urban areas in the U.S. in 2015.
According to the latest Cost of Living Index report, which averaged data from the first three quarters of 2015, Bozeman’s cost of living sits at just 2.7 percent above the national average for the year. This is just one of many factors driving the fast-paced growth in the area.
The composite Cost of Living Index score is based on six categories – housing, utilities, grocery items, transportation, health care and miscellaneous goods & services. The national average composite index is set at 100 each period; so the index conveys relative price levels at a specific point in time. Each place’s index score is expressed as a percentage of the average. The Index does not measure inflation (price change over time).
Housing: The 2015 annual average housing index score was 112.9, meaning that area housing was 12.9 percent above the national average for the year. The average price of a 2,400 square foot new home on an 8,000 square foot lot that met the index collection specifications was $363,664. The average monthly rental rate for a 950 square foot apartment in Bozeman that met the index collection specifications was $995. Mortgage rates are also taken into consideration when computing the housing index score.
All Other Categories: Bozeman residents generally get a good deal when it comes to utilities, which were 14.6 percent below average. Transportation costs came in 2.1 percent below average, while groceries were 3.9 percent above average and health care was 4.8 percent above average for the year. Miscellaneous goods & services did not differ significantly from the national average.
Area Comparisons: To put Bozeman’s index scores in perspective, the table below includes the cities with the most expensive and least expensive composite scores for the quarter—Manhattan, New York and McCallen, Texas respectively. The table also includes the most comparable cities to Bozeman in the Western region that participate in the index.
2015 Annual Average Cost of Living Index
City
Composite
Score
Groceries
Housing
Utilities
Transportation
Health Care
Misc. Goods & Services
San Francisco, CA
176.4
127.9
319.4
108.2
132.0
118.1
118.3
Pueblo, CO
85.6
94.8
71.4
81.9
91.9
93.6
92.1
Twin Falls, ID
90.5
90.3
80.1
95.3
98.5
99.4
93.9
Bozeman, MT
102.7
103.9
112.9
85.4
97.9
104.8
100.2
Manhattan, NY
Most expensive, 2015
227.4
128.2
457.7
130.5
131.3
116.2
148.7
Portland, OR
129.5
115.5
166.8
83.5
119.0
110.5
123.9
Pierre, SD
102.5
104.2
117.0
89.5
99.7
96.5
95.4
McAllen, TX
Least expensive, 2015
78.3
79.8
72.6
85.5
87.5
80.1
76.9
Cedar City, UT
88.6
94.4
75.5
88.2
102.3
84.7
93.4
Olympia, WA
100.1
105.6
98.7
78.9
115.5
118.2
98.1
Laramie, WY
92.8
96.8
88.9
100.2
92.0
100.8
91.5
The national average composite index is set at 100 each collection period. The index conveys relative price levels at a specific point in time and the index score can be seen as a percentage of the average for all places The Index does not measure inflation (price change over time).
More About the Cost of Living Index
Prospera insists on providing accurate, dependable information that helps inform and advance local businesses. The Cost of Living Index measures regional differences in the cost of consumer goods and services for professional and managerial households in the top income quintile. It is based on more than 50,000 prices covering almost 60 different items for which prices are collected three times a year by chambers of commerce, economic development organizations, and university applied economic centers in each participating urban area. Prospera Business Network, the local economic development organization, collects prices for the index items in Bozeman and submits its research to be analyzed and compared to other communities.
All items are priced in each place at a specified time and according to standardized specifications. Small differences in the index numbers should not be interpreted as significant. The Index does not measure inflation (price change over time). Because each quarterly report is a separate comparison of prices at a single point in time, and because both the number and the mix of participants changes from one quarter to the next, Index data from different quarters cannot be directly compared.
About C2ER, the Council for Community and Economic Research
C2ER is a nonprofit professional organization comprising research staff of chambers of commerce, economic development organizations and agencies, and related organizations throughout the United States and Canada. In its dedication to improving business information through research, C2ER developed the Cost of Living Index to meet the need for a measure of living cost differentials among urban areas. Originally titled Inter-City Cost of Living Indicators Project, the Cost of Living Index has been published quarterly since 1968. The Cost of Living Index is based on nearly 100,000 data points gathered primarily by C2ER members located in 400 cities. For more information about participating in this project or joining C2ER, please visit www.c2er.org or call 703-522-4980.
About Prospera Business Network
Prospera Business Network is a member-supported nonprofit economic development organization in southwestern Montana whose purpose is to advance, challenge and inspire our regional business communities. Originally established in 1985 as the Gallatin Development Corporation, Prospera plays a leading role in economic development serving a region that is one of the fastest growing economic areas in the northern Rocky Mountains. Prospera is dedicated to supporting business expansion, retention and relocation by providing access to business consulting, financing, professional development and economic research. Prospera Business Network provides a wealth of resources and tools to business leaders and visionary entrepreneurs and prides itself on the range and quality of its programs. To learn more visit: www.ProsperaBusinessNetwork.org.
Below are media release items compiled by C2ER.
This report represents the ninth edition of a new format for the Cost of Living Index. Beginning with the fourth quarter of 2007, C2ER has annually published an unweighted average of prices accumulated from the previous three quarters. The data presented represent average prices submitted for the first three quarters of 2015. For further details on the annual average methodology, please visit our website at http://www.coli.org/Method.asp
Among the 273 urban areas that participated in the 2015 Cost of Living Index, the after-tax cost for a professional/managerial standard of living ranged from more than twice the national average in New York (Manhattan), NY, to more than 20 percent below the national average in McAllen, TX. The Cost of Living Index is published quarterly by C2ER – The Council for Community and Economic Research.
The Ten Most and Least Expensive Urban Areas
in the Cost of Living Index (COLI)
Year-End Review of Three Quarters in 2015
National Average for 273 Urban Areas = 100
Most Expensive
Least Expensive
COL
COL
Ranking
Urban Areas
Index
Ranking
Urban Areas
Index
1
New York (Manhattan) NY
227.4
1
McAllen TX
78.3
2
Honolulu HI
188.2
2
Harlingen TX
79.7
3
San Francisco CA
176.4
3
Richmond IN
81.2
4
New York (Brooklyn) NY
173.2
4
Norman OK
81.5
5
Hilo HI
149.0
5
Ashland OH
82.3
6
Orange County CA
148.6
6
Youngstown-Warren OH
82.8
7
Oakland CA
147.0
7
Idaho Falls ID
83.2
8
Stamford CT
146.9
7
Hattiesburg MS
83.2
9
Washington-Arlington-Alexandria DC-VA
146.8
7
Jackson MS
83.2
10
San Diego CA
144.8
8
Tupelo MS
84.2
8
Cookeville TN
84.2
9
Memphis TN
84.5
10
Sherman-Denison TX
84.7
The quarterly Cost of Living Index is available by subscription at: $165 per year for the print edition, $150 per year for the PDF version, or $250 per year for an electronic (excel) version. Send check, payable to C2ER, P.O. Box 100127, Arlington VA 22210-0407, or subscribe on the Internet at www.coli.org.
If you need additional information on the Cost of Living Index or other COLI-related products such as the COLI Web Calculator, COLI Historical Index, County-Level Index, or Library Web Application, please contact Jennie Allison at jallison@crec.net or Erol Yildirim at ey@crec.net or by phone at 703-522-4980.
###
Drew Little
Program Director
Prospera Business Network
2015 Charlotte Street, Suite 1 | Bozeman, Montana 59718
Ph: (406) 587-3113 Fax: (406) 587-9565
dlittle@ProsperaBusinessNetwork.org
www.ProsperaBusinessNetwork.org
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