A Breakdown of Cost of Living in Utah

By Michael Stachitus, MSML , EDCUtah director of research.

Cost of living is an important issue in Utah and across the U.S., especially as inflation has had ?far-reaching impacts on Americans over the past few years. Some states have seen more significant changes in cost of living than others, and Utah is one of those. In 2014, Utah’s metro areas had an average cost of living index score of 93, lower than the national average of 100. In 2024, every Utah metro area has an index score over 100, with Salt Lake and St. George at 109.5 and 108.1 respectively. How is this index calculated, and what has caused the drastic increase in Utah metro areas?

The Council for Community and Economic Research (C2ER) Cost of Living Index is a quarterly publication produced and published by tC2ER, a national association of research professionals working in community and economic development. C2ER’s Cost of Living Index sheds light on changing costs across the U.S. and is nationally recognized as one of the best sources for cost of living data. ?

Each quarter, partner organizations all around the nation, including EDCUtah’s research team in Utah, sample prices of common goods and services. These goods and services fall into the following categories: grocery items, housing, utilities, transportation, health care, and miscellaneous goods and services. These categories are then used to produce the overall composite index score. Each category is weighted differently, according to C2ER’s methodology, as follows:

Here is how Utah’s metro area scores in each of those areas, with 100 being the national average:

Since Utah’s index scores have increased substantially over the past decade, this shows that cost of living has been more rapidly increasing in Utah compared to other locations in the United States since the score of 100 is always equal to the national average in any given quarter when the index is calculated. The two areas where Utah scores considerably higher than the national average are housing and transportation. Since housing is such a significant portion of the cost-of-living index score, and a highly significant cost for Utahns each month, it’s one of the reasons behind the high composite index score. ?

It’s not surprising that Utah’s much lower average composite index score of 93 in 2014 showed a much lower index score in housing and transportation, 97.1 and 101.6 respectively. While some of the other categories have also increased, none have increased so drastically as housing and transportation. According to Zillow, the median home value in Salt Lake City was $282,946 in 2016. Today, that number has increased to $548,351, an increase of 94%. Utah has seen significant increases in housing costs in all other metro areas as well, although housing costs are not growing as rapidly today. For transportation, the index measures the cost of gasoline and common automobile repairs. Those costs have steadily increased in Utah.

The entire nation has seen rising costs of living, but it has been more acute in in the Intermountain West and Utah specifically over the same period. This is a result of a variety of factors including rapid population growth and increased in-migration, microeconomic forces including housing undersupply, and a tightened labor market. ?Utah’s cost of living is still comparable to other major competitor metro areas, and Utah leaders are tackling rising costs with a number of strategic initiatives such as the Olene Walker Housing Loan Fund, the Low-Income Housing Tax Credit (LIHTC) Program, and other investments into affordable housing and cost of living. ?

For more information about the Cost of Living Index, email us at [email protected] or explore the benefits of investing with EDCUtah . ?

Data Source: C2ER Cost of Living Index