B
9%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
18%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Billings Montana National
Cost of living109101100
Goods & Services104104100
Groceries101103100
Health care10498100
Housing11899100
Transportation125109100
Utilities9393100

An Overview of Cost of Living in Billings, MT

Knowing the cost of living in Billings allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Billings stands at 109, marking it 9% higher than the national average.

The cost of living in Billings is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

What Do Locals Say About the Cost of Living in Billings?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 11 locals to understand their opinions on the cost of living in Billings. The results indicated that 36% found it reasonably priced with decreasing prices of goods and services, while 64% viewed it as quite expensive, with increasing prices.

Is Billings Affordable?

Is Billings affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Billings, the median home price is 26.5% higher than the national average and monthly rent prices are 2.7% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Billings boasting a median household income of $60,032, 8.5% higher than the national average.

What Factors can Influence the Cost of Living in Billings?

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Billings, is 17.7% higher than the national average.

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Billings, healthcare costs are 4.3% higher than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Where is the Data From?

The cost of living in Billings, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Billings is 7% higher than the Montana average
  • The cost of living in Billings is 9% higher than the national average
  • Billings housing is 18% higher than the national average
  • Montana general sales tax is 100% lower than the national average
  • Montana state income tax is 61% lower than the national average

Most Affordable Places to Live in and Around Billings

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Compare Billings, MT Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$76,508$6,376$1,785$2,295
      Renters$38,868$3,239$907$1,166
      A good way to judge both the affordability of the housing and the cost of living in Billings is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Billings has a median income of about $76,508 for people who own homes. Based on that number, a maximum of $1,785 should be spent on expenses related to housing. Renters have a slightly different median income, which is $38,868. Based on this average, renters should spend no more than $907 on all rental costs if they want to maintain a non-impoverished standard of living.

      Montana Sales Tax

      State General Sales Tax With Max Surtax
      Montana 0% 0%

      Montana Income Tax

      State Income Tax (Low) Income Tax (High)
      Montana 1% 6.75%

      Goods & Services

      Item Billings National avg. Difference
      Haircut $29.17$24.2620.2%
      Beauty Salon $41.59$45.568.7%
      Toothpaste $4.10$3.7010.8%
      Shampoo $1.23$1.283.9%
      Movie $12.47$12.132.8%
      Bowling $17.73$18.001.5%

      Groceries

      Item Billings National avg. Difference
      Ground Beef $5.69$5.842.5%
      Fried Chicken $1.40$1.5710.7%
      Milk $4.75$4.671.6%
      Potatoes $4.54$4.938.1%
      Pizza $12.10$12.090.1%
      Beer $10.75$10.413.3%

      Health Care

      Item Billings National avg. Difference
      Optometrist $153.82$125.6822.4%
      Doctor $187.05$135.7837.8%
      Dentist $102.51$113.299.5%
      Ibuprofen $10.61$10.650.4%
      Lipitor $348.38$468.6025.7%

      Housing

      Item Billings National avg. Difference
      Home Price $233,700.00$184,700.0026.5%
      Avg. Mortgage Payment $2,351.75$2,346.690.2%
      Apartment Rent $923.00$949.002.7%

      Transportation

      Item Billings National avg. Difference
      Gasoline $3.45$3.460.2%
      Tire Balancing $111.34$59.9285.8%

      Utilities

      Item Billings National avg. Difference
      All Electricity $177.24$193.998.6%
      Phone $183.03$192.254.8%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Shepherd, MT9441054.7%
      Laurel, MT6,7971011.0%
      Lockwood, MT8,2061044.1%
      Huntley, MT5221088.1%
      Billings, MT109,7051098.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      St. John's, NL109,566n/a 
      Richmond, CA110,05115656.5%
      Inglewood, CA109,30915757.4%
      Lakeland, FL110,335964.4%
      Gresham, OR110,45612423.9%
      Billings, MT109,7051098.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.