What Is the Cost of Living in Idaho?

The cost of living encompasses expenses for housing, food, transportation, and healthcare. Understanding these costs is important for individuals and families considering a move or managing their finances. In Idaho, these expenses can vary, impacting the overall financial landscape for residents. Evaluating these components provides a comprehensive picture of what it takes to live comfortably.

Understanding Major Living Expenses

Housing represents a major living expense in Idaho. The median home price across the state was around $454,300 as of August 2024. For renters, the average monthly rent in Idaho ranges from approximately $1,096 to $1,775. A one-bedroom apartment averages around $823 per month, while a two-bedroom unit averages $1,027 statewide.

Utility costs in Idaho are below the national average. The average monthly utility bill, covering electricity, natural gas, water, and internet, is approximately $297. Electricity costs around $108.73, natural gas $53, water $49, and internet $53 per month. These figures can fluctuate based on household size and seasonal energy consumption.

Grocery and food expenses in Idaho are lower than the national average, positioning the state among the top three for affordability. The average annual non-restaurant food cost is about $3,296 per person, translating to approximately $275 per month. A single resident might spend around $413 monthly on groceries, while a family of four could see monthly costs around $1,214.

Transportation costs vary. Annual expenses for a single adult range from $5,316 to over $15,073. In larger cities, a single person’s annual cost is around $13,205, while a family of four’s is about $22,151 per year. Most areas in Idaho are car-dependent, and gas prices are similar to or slightly above the national average.

Healthcare expenses in Idaho are lower than the national average. The average annual cost for health insurance per person is approximately $5,475 to $6,714. For individual plans, the average monthly premium for a Bronze plan is around $317.

Miscellaneous expenses also contribute to the cost of living. Idaho has a flat individual income tax rate of 5.695% for 2024 income. The state sales tax rate is 6%, with local jurisdictions adding up to 3%. Property taxes are affordable, with an effective rate of about 0.47% to 0.56% on owner-occupied housing value, which is lower than the national average.

Regional Cost Differences in Idaho

The cost of living in Idaho varies across the state, with significant differences between urban and rural areas. Major metropolitan areas, particularly in the southwest, have higher housing costs due to increased demand and limited supply. Housing is often the primary driver of regional cost differences.

Boise, the state’s capital and largest city, has higher housing costs. As of August 2024, the median home price in Ada County was around $551,950. Rent for a one-bedroom apartment in Boise averages about $1,087, while a two-bedroom averages $1,252. Nearby Meridian also has higher prices, with median home values around $520,874 in January 2025.

Other cities offer more affordable housing. Nampa had a median home price of approximately $399,612 in January 2025. Idaho Falls, in eastern Idaho, has a median home price around $352,500 to $370,000, and a two-bedroom apartment rents for about $1,050. Pocatello, also in eastern Idaho, has lower costs, with median home prices around $335,000 and average rents for a one-bedroom at $995.

Northern Idaho also has varied costs. Coeur d’Alene has a median home price that can reach $815,000, with average rents for a one-bedroom apartment around $1,550. Smaller towns and rural areas across Idaho offer lower housing costs compared to these larger cities.

Economic Drivers of Living Costs

Economic factors contribute to Idaho’s cost of living. Population growth is a primary driver, with significant increases in residents over the past decade. This influx increases demand for housing, infrastructure, and consumer goods.

The population surge has pressured the housing market. Increased demand and tight supply have led to rising home prices and rental rates. Construction costs are also affected, as demand for new homes translates to higher prices for materials and labor. This creates a seller’s market where properties are quickly absorbed.

Idaho’s strong job market and economic development also shape living costs. A robust economy leads to increased consumer spending, which pushes up prices for goods and services. High demand, limited housing inventory, and rising construction expenses collectively influence the state’s affordability. Economic growth contributes to upward pressure on living expenses.

Practical Budgeting Considerations

Developing a realistic budget is a fundamental step for anyone considering living in Idaho, given the state’s specific cost structures. Financial planning should align income sources with the local cost of expenses, ensuring that necessary expenditures are covered while allowing for savings. A common financial guideline, such as allocating about 50% of income to needs, 30% to wants, and 20% to savings or debt repayment, can provide a helpful framework.

If the average rent in Idaho is around $1,430, a household would ideally need to earn at least $4,767 per month, or approximately $57,200 annually, to keep housing costs within 30% of gross income. This highlights the importance of assessing local income levels against typical rental or mortgage payments. A single person might need to earn around $88,733 annually to live comfortably, and a family with one child might need $211,245, underscoring the financial commitment involved.

Exploring options for reducing specific expenses can significantly impact a budget. For utilities, adopting energy-efficient practices, such as optimizing heating and cooling usage, can help lower monthly bills. Evaluating the necessity of personal vehicles versus public transit options, especially in car-dependent areas, can inform choices about vehicle ownership, maintenance, and fuel consumption. Building an emergency fund is a prudent financial strategy, providing a buffer against unexpected costs and promoting long-term financial stability.