In a report released by a local research group, Prospera Business Network, Bozeman is barely above the average cost of living of the national average in 2014. According to Prospera Business Network, Bozeman scored a 100.8 index cost of living score—or in other words, they were 0.8% above the average.
The data was drawn from an unweighted average from the first three quarters of 2014 from 281 participating towns and cities. The report took data from six categories—housing, utilities, grocery items, transportation, health care and miscellaneous goods and services. The report also broke down the cost of living by each category—something both home buyers and real estate agents may find more useful.
Housing: Bozeman scored an index score of 113.2, meaning houses cost 13.2% higher than the national average for 2014. This has both positive and negative elements. The negative is obvious—home prices are higher so it will cost a bit more to live in Bozeman than in other places. The positives lie in the implications of having higher prices. First, Bozeman has recovered faster from the housing recession than a majority of US towns. Second, Bozeman is attracting higher paying jobs that bring higher prices than the majority of the US. Third, Bozeman buyer demand has noticeably increased which has driven up home prices, showing just how marketable Bozeman has become. The outdoor aspects of Bozeman, its arts and culture and its reputation as an easy to live in town continue to draw interest from visitors.
The report released some interesting numbers as well. The average home price for a 2,400 square foot home on an 8,000 square foot lot in Bozeman was $353,777. The average monthly rent for a 950 square foot home in Bozeman was $917 a month. Those rent prices sure explain why renting has become so difficult in Bozeman.
Minus groceries and health care, Bozeman scored below the national average.
Transportation: 7.5% below national average
Utilities: 12% below national average
Misc. Goods and Services – 3.9% below national average.
Groceries – 2% above national average.
Health Care – 5.9% above national average.
Compared to some cities in the US, Bozeman is extremely affordable. Bozeman’s score of 100.8 looks pretty good compared to San Francisco, 303.9, and Manhattan, NY 439.5.
Here is a list of other cities in the survey that represented costs of living above and below Bozeman’s cost of living.
|2014 Annual Average Cost of Living Index
||Goods & Services
|San Francisco, CA
|Grand Junction, CO
|Twin Falls, ID
|Cedar City, UT