Idaho’s latest cost of living index stands at 102.9, meaning residents pay approximately 2.9% more than the national average for goods and services. Understanding these numbers requires examining each component of the cost of living in Idaho and how it contributes to the overall index calculation.
Index categories and their weights
Idaho’s cost of living index comprises six primary categories, each weighted differently based on typical household spending patterns:
- Housing (29% of index) – 97.1
- Groceries (13% of index) – 101.5
- Utilities (10% of index) – 89.7
- Transportation (12% of index) – 107.4
- Healthcare (8% of index) – 105.2
- Miscellaneous goods and services (28% of index) – 104.3
These numbers, with 100 representing the national average, reveal which aspects of Idaho living cost more or less than typical U.S. rates.
Housing index reveals affordability shifts
Despite recent price increases, Idaho’s housing index 97.1 remains slightly below the national average. However, this number masks significant variations:
- Urban areas like Boise score 115-125
- Mid-sized cities range 95-105
- Rural communities score 75-85
The state average benefits from lower rural housing costs, offsetting higher urban prices.
Grocery costs vary by region
The grocery index of 101.5 indicates minimal deviation from national averages, but regional differences persist:
- Fresh produce costs 10-15% more in northern Idaho
- Meat and dairy prices align with national rates
- Processed foods cost 3-5% less statewide
- Seasonal availability affects rural areas more significantly
Utility advantages boost affordability
Idaho’s utility index of 89.7 provides residents with substantial savings, particularly in:
- Electricity rates averaging 8.5 cents per kWh
- Natural gas costs 20% below the national average
- Water and sewer charges remaining competitive
- Internet service is expanding with affordable options
These savings help offset higher costs in other categories.
Transportation costs exceed national norms
The transportation index of 107.4 reflects several factors:
- Limited public transit options increase car dependency
- Rural residents drive longer distances
- Fuel prices align with Western state averages
- Vehicle maintenance costs exceed national rates
These factors combine to make transportation Idaho’s most expensive category relative to national averages.
Healthcare index shows moderate increases
Idaho’s healthcare index 105.2 indicates slightly higher medical costs than national averages. Contributing factors include:
- Rural healthcare access limitations
- Specialist services concentrated in urban areas
- Insurance premiums matching regional trends
- Prescription drug costs vary by location
Miscellaneous expenses reflect lifestyle costs
The miscellaneous category index of 104.3 encompasses diverse expenses:
- Entertainment and recreation costs
- Personal care services
- Clothing and accessories
- Educational expenses
- Restaurant dining
These discretionary costs show moderate increases across most Idaho communities.
Metropolitan area comparisons
Idaho’s major cities show distinct cost patterns:
- Boise metropolitan area: 108.5 overall index
- Coeur d’Alene: 106.2 overall index
- Idaho Falls: 101.8 overall index
- Twin Falls: 99.7 overall index
- Pocatello: 98.3 overall index
Urban centres consistently score higher than rural areas across most categories.
Income adjustment factors
Many employers use cost-of-living indexes to determine salary adjustments. Idaho’s 102.9 index suggests:
- A $60,000 national salary equals approximately $61,740 in Idaho
- Urban areas may require a 5-10% additional adjustment
- Rural positions might warrant a 5-15% reduction
These calculations help maintain purchasing power parity across locations.
While the state maintains advantages in specific categories, particularly utilities, rising housing and transportation costs push the overall index above national averages, creating new challenges for residents and policymakers alike.
