Bozeman’s cost of living was 1.6 percent above the national average as of January, compared to 260 other urban areas in the U.S. The Cost of Living Index compares costs for professional and executive households. The latest report compared data for the first quarter of 2016. Nationwide, the after-tax cost for a professional standard of living ranged from more than twice the national average in Manhattan, NY to about 23 percent below the national average in McAllen, TX.
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 first quarter 2016 housing index score was 108.8, meaning that area housing was 8.8 percent above the national average for the quarter. The average price of a new 2,400 square foot home on an 8,000 square foot lot that met the index collection specifications was $354,272. The average monthly rental rate for a 950 square foot apartment in the Bozeman area that met the index collection specifications was $1,044. Mortgage rates are also taken into consideration when computing the housing index score.
All Other Categories: For Bozeman residents the best bargain related to utility costs, which were 6.7 percent below the national average as of January. Transportation costs came in 1.9 percent below average and miscellaneous goods & services were 0.9 percent below average. Meanwhile groceries were 0.9 percent above average and health care was 5.6 percent above average for the quarter.
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.
Q1 2016 Cost of Living Index Results |
City |
Composite Score |
Groceries |
Housing |
Utilities |
Transportation |
Health Care |
Misc. Goods & Services |
San Francisco, CA |
177.5 |
129.1 |
317.6 |
107.8 |
142.2 |
118.8 |
119.0 |
Colorado Springs, CO |
92.6 |
94.3 |
95.0 |
73.9 |
95.5 |
103.8 |
93.3 |
Boise, ID |
92.5 |
91.1 |
81.5 |
83.7 |
110.4 |
105.1 |
97.4 |
Bozeman, MT |
101.6 |
100.9 |
108.8 |
93.3 |
98.1 |
105.6 |
99.1 |
Manhattan, NY Most expensive, Q1 2016 |
227.0 |
127.8 |
452.7 |
129.3 |
143.9 |
115.4 |
148.2 |
Portland, OR |
130.6 |
122.6 |
170.1 |
80.5 |
116.2 |
112.0 |
123.2 |
Pierre, SD |
101.3 |
101.1 |
116.8 |
99.1 |
94.7 |
94.8 |
92.1 |
McAllen, TX Least expensive, Q1 2016 |
76.9 |
84.9 |
68.5 |
89.5 |
77.7 |
77.4 |
76.7 |
Cedar City, UT |
90.0 |
92.8 |
78.3 |
88.2 |
110.1 |
84.6 |
93.4 |
Olympia, WA |
103.3 |
107.3 |
98.7 |
90.8 |
131.5 |
119.2 |
97.8 |
Laramie, WY |
92.0 |
97.9 |
83.1 |
98.1 |
106.8 |
97.0 |
89.5 |
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.