HomeMy WebLinkAboutSecond Quarter Housing prices Hit New LowSECOND QUARTER HOUSING PRICES HIT NEW LOW
BOZEMAN – The cost of housing in Bozeman dropped nearly nine percentage points between first and second quarters this year, according to the
latest cost of living report released today by Prospera Business Network.
When compared to the rest of the country, housing costs in Bozeman hit an all-time low in the second quarter
of 2011, at 94 percent of the national average. Since 2006, Prospera has been reporting the average listing price of eight to ten single family homes with 2,400 sq. ft. and built in
the last four years in Bozeman. The data reflects an average second quarter mortgage rate of 4.87 percent and also takes rental prices into consideration.
Recent reports from the Gallatin
Association of Realtors indicate a few more Bozeman homes were actually sold in the second quarter than the first quarter, and that the median selling price increased slightly. Thus,
the listing prices that Prospera collects are yielding a slightly more active market.
“There is some good news in the data for some people and a continued trend of high costs that pose
challenges for others,” said Stuart Leidner, executive director at Prospera Business Network. “We are interested in how this affects the business community. If it is more affordable
now to buy a home here and stay in the area, then the market may be helping businesses retain employees. But if you’re jobless and facing relatively high grocery bills, it is easy to
understand how a more negative outlook can take hold. However, when taking other expenses like utilities, transportation, and health care into account, the overall cost of living here
moved even closer to national averages., which is a very positive sign for our area.”
2011 Bozeman Cost of Living
Composite Score
Grocery Items
Housing
Utilities
Transportation
Health Care
Goods & Services
1st Quarter
104.3
112.3
102.9
94.7
96.9
100.8
108
2nd Quarter
101.2
112.7
94.2
91.5
96.4
100.5
107.2
As reported last quarter,
groceries are spiking higher than ever before and remain more than 12 percent above national averages. The goods and services category peaked during the first quarter, too, but declined
slightly in the second quarter.
Kalispell and Missoula also participate in the study. Their healthcare costs are about 7 percent higher than Bozeman’s, and all three communities’ cost
of living for the quarter are on par with the rest of the country. The table shows how Bozeman, Kalispell, and Missoula compare to other communities of similar size and composition.
City
Composite
S
core
Groceries
Housing
Utilities
Transportation
Health Care
Misc.
Bozeman, MT
101.2
112.7
94.2
91.5
96.4
100.5
107.2
Missoula, MT
99.5
106.7
91.7
99.9
98.7
106.8
102.6
Ka
lispell, MT
99.3
111.7
98.1
88.3
102.5
107.2
96.8
Laramie, WY
100.4
102.9
108.1
95.9
91.7
106.1
95.9
Mankato, MN
95.5
100.7
82.5
101.2
96
105.8
101.6
Colorado
Springs, CO
91.8
93.2
87.3
89.6
97
102.2
93.1
National Average is based at a score of 100.
Among the 305 urban areas that participated in the second quarter 2011 ACCRA 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 almost 20 percent below the national average in Harlingen, TX. The ACCRA Cost of Living
Index is published quarterly by C2ER – The Council for Community and Economic Research. Local research is submitted by Prospera Business Network.
The Ten Most and Least Expensive Urban
Areas
in the ACCRA Cost of Living Index (COLI)
Second Quarter 2011
National Average for 305 Urban Areas = 100
Most Expensive
Least Expensive
COL
COL
Ranking
Urban
Areas
Index
Ranking
Urban Areas
Index
1
New York (Manhattan) NY
220.7
1
Harlingen TX
80.6
2
New York (Brooklyn) NY
182.1
2
Sherman-Denison TX
84.4
3
Honolulu
HI
166.1
3
McAllen TX
84.7
4
San Francisco CA
166.0
4
Pueblo CO
84.9
5
New York (Queens) NY
153.2
5
Richmond IN
85.0
6
San Jose CA
151.2
6
Kalamazoo MI
85.4
7
Stamford
CT
147.7
7
Temple TX
85.6
8
Truckee-Nevada County CA
147.0
8
Pryor Creek OK
85.8
9
Washington DC
144.4
9
Memphis TN
86.0
10
Orange County CA
143.8
10
Fayetteville
AR
86.0
What Does Transportation Cost?
Each quarter, C2ER collects more than 90,000 prices from communities across the US for the Cost of Living Index.
Given the recent spike in gasoline prices, C2ER decided to feature the communities with the most and least expensive transportation costs as measured by the transportation index number.
C2ER collects data on two items, including gasoline, to represent the transportation component of the index.
The Five Most and Least Expensive Places for Transportation by Index
Number
in the ACCRA Cost of Living Index (COLI)
Second Quarter 2011
Average for 305 Urban Areas = 100
Most Expensive
Least Expensive
Ranking
Urban Areas
Index
Rank
ing
Urban Areas
Index
1
Kodiak AK
125.5
1
Fayetteville AR
82.5
2
Honolulu HI
123.8
2
Wichita Falls TX
83.7
3
New York (Manhattan) NY
122.1
3
Winston-Salem NC
84.2
4
Truc
kee CA
119.5
4
Pryor Creek OK
84.9
5
Stamford CT
117.7
5
Knoxville TN
85.0
About the ACCRA Cost of Living Index
The ACCRA Cost of Living Index is a national comparison of 305 urban areas measuring regional differences in the cost of consumer goods and services, excluding taxes and non-consumer
expenditures, for professional and managerial households in the top income quintile. It is based on more than 90,000 prices covering almost 60 different items and includes: housing,
utilities, groceries, transportation, healthcare, and miscellaneous goods. The Index is compiled and published quarterly by C2ER, The Council for Community and Economic Research. Prospera
Business Network collects and reports data for the City of Bozeman each quarter.
About the C2ER, the Council for Community and Economic Research
Formerly the American Chamber of Commerce
Research Association (ACCRA), C2ER is a membership organization created in 1961 to promote excellence in community and economic research by working to improve data availability, enhance
data quality, and foster learning about regional economic analytic methods. C2ER produces the national ACCRA Cost of Living Index to provide a useful and reasonably accurate measure
to compare cost of living differences among urban areas. The ACCRA Cost of Living Index is the most reliable source of city-to-city comparisons of a key consumer costs available anywhere.
To learn more about C2ER, visit: www.c2er.org
About Prospera Business Network
Prospera Business Network is a private, non-profit, economic development organization in southwestern Montana.
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 economies
in the northern Rocky Mountains. Prospera depends on its members to help fund its mission: encouraging and supporting business expansion, retention and relocation by providing business
consulting, financing, professional development and economic research. To learn more about Prospera Business Network, visit: www.ProsperaBusinessNetwork.org
For a complete history
of Bozeman’s Cost of Living Trends, click here:
http://www.prosperabusinessnetwork.org/Default2.aspx?ID=18