Is Idaho Expensive to Live In? Cost of Living Breakdown

Idaho, often recognized for its natural landscapes and outdoor opportunities, has become a focus of attention for those considering relocation. The perception of its affordability can differ widely depending on individual financial circumstances and the specific area within the state. Understanding the nuances of living costs in Idaho requires a closer look at various expenditure categories and regional economic factors.

Overall Cost of Living in Idaho

The overall cost of living in Idaho generally hovers around the national average, though specific data varies, with some sources indicating it is slightly higher and others slightly lower. This highlights that while some expenses may be elevated, others remain comparatively lower, balancing the overall financial landscape.

Compared to many other Western states, Idaho can offer a more moderate cost of living, contributing to its appeal for new residents. The state’s cost of living index, when considered broadly, positions it in the middle range across the United States. This means that while some categories might exceed national benchmarks, others frequently fall below them, creating a diverse financial environment.

Key Cost Categories Explained

Housing represents a significant portion of living expenses, and in Idaho, median home values are generally higher than the national average. A typical home in Idaho costs around $445,000 to $476,000, notably above the national median. For renters, the overall average rent in Idaho ($1,096 to $1,417 per month) can be lower than the national median. A one-bedroom apartment averages $823 to $839 monthly, and a two-bedroom averages $1,027 to $1,045.

Utility costs in Idaho tend to be more affordable than the national average. Monthly expenses for essentials like electricity, heating, cooling, water, and trash come in lower. Some reports suggest utility prices are 20% to 23% lower than the national average. This provides financial relief for households.

When it comes to groceries, the data presents a mixed picture. Some sources indicate that grocery prices are around 1% to 4% higher than the national average. However, other analyses suggest Idaho ranks among the states with the lowest grocery prices, potentially running about 20% less than the national average.

Transportation expenses in Idaho are generally in line with national averages, though gas prices can be slightly elevated. A single adult might anticipate spending approximately $10,847 annually on transportation. While public transit options might be limited in many areas, average car insurance costs are often lower than the national average.

Healthcare expenses in Idaho are comparable to the national average, sometimes appearing slightly higher or lower depending on the specific service or city. The average annual cost for healthcare per person is around $6,714. For those with employer-sponsored plans, employees typically contribute about $1,358 annually for coverage.

Regional Variations Within Idaho

The cost of living in Idaho is not uniform across the state and varies significantly by region. Urban centers like Boise, Meridian, and Coeur d’Alene generally have higher costs due to increased demand and more amenities. Boise, for instance, has a cost of living index that is 2% higher than the national average, with housing expenses also 1% higher.

In contrast, smaller towns and more rural areas offer greater affordability. Cities such as Idaho Falls and Pocatello feature lower rental prices and more accessible housing markets. For example, Idaho Falls boasts a median home price of $375,000, which is considerably less than the national median. Idaho Falls is often noted as having a lower cost of living, making it an attractive option for budget-conscious residents.

Income and Affordability

The median household income in Idaho is approximately $74,636 per year, which is slightly less than the national median household income of $78,538. This income level plays a role in determining overall affordability when balanced against the state’s expenses. While the income may not always keep pace with the rising cost of housing in some areas, it generally aligns with other living expenses.

To live comfortably in Idaho, a single person is recommended to have an annual income of approximately $35,600 to $39,739. For a family, the recommended annual income is around $85,320. Idaho’s tax structure includes a flat income tax rate of 5.8%. Property taxes in Idaho are relatively low, with an effective rate of 0.67%.