An Overview of Cost of Living in Bozeman, MT
Are you thinking about relocating, but curious about the potential cost of living in Bozeman? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Bozeman stands at 134, making it 34% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
The cost of living in Bozeman is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Bozeman falls into this category, which may not be suitable for those seeking an economically favorable living environment.
Housing costs make up a big chunk of the cost of living in Bozeman, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 92.5% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
Recurring essentials like haircuts, toothpaste, and entertainment, from movies to gym sessions, can really add up in your budget and make up 33% of the cost of living index. In Bozeman, you you will have to spend 18.1% more than average when compared to the typical prices for these items, making it a more expensive place to live.
What Do Locals Say About the Cost of Living in Bozeman?
Nobody knows their city better than the people who actually live there. So, we asked 35 local residents how they would rate the cost of living in Bozeman and this is how they responded. 3% of people said that the cost of living was affordable, with prices decreasing, while 97% of people said that the cost of living was very expensive and prices continue to rise.
Is Bozeman Affordable?
Is Bozeman 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 Bozeman, the median home price is 123.3% higher than the national average and monthly rent prices are 20.7% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Bozeman boasting a median household income of $59,695, 7.9% higher than the national average.
What Factors can Influence the Cost of Living in Bozeman?
Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Bozeman, the housing index is 92.5% higher than the national average.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Bozeman, healthcare costs are 4.1% lower than the national average.
Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Bozeman, the groceries index is 6.8% higher than the national average.
Where is the Data From?
The Bozeman cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.