In 2022 alone, nearly 50,000 people moved to Montana - and it isn’t hard to see why. Surrounded by stunning natural scenery, a thriving job market, and plenty to see and do, there’s no shortage of reasons why you should make the move to the Treasure State.
However, before doing so, you need to ensure that this is feasible in terms of finances. In this article, we’ll focus on the cost of living in Montana so that you are able to make a more informed decision ahead of the big move.
Understanding the Cost of Living in Montana 2023
The cost of living in the US has been a point of concern for many years, with “annual inflation reaching a multi-decade high of 8% in June 2022.” While inflation rates are lower in 2024, the cost of living remains high in numerous states throughout the US.
What is the cost of living in Montana?
According to the 2023 Personal Consumption Expenditures by State report from BEA, the average personal consumption cost in Montana is $51,913. These figures take into account a range of expenses, including housing (rent/mortgage), utilities, groceries, and entertainment. While this may seem relatively high, it's far lower than personal expenses incurred in other states, such as California ($60,272) and Colorado ($59,371).
Is Living in Montana Expensive?
Living in Montana can be expensive. In 2023, it ranked as the 33rd most expensive state to live in the US. However, neighboring states South Dakota, North Dakota, and Wyoming ranked much higher at 17, 22, and 18, respectively.
According to a recent study, the average salary in Montana is $52,200, though its job market is rapidly expanding, meaning there are plenty of employment opportunities in place.
Average Cost of Living in Montana per Month
The amount you can expect to spend when living in Montana can vary depending on a variety of factors, such as the size of your property, your monthly outgoings, and your ability to stick to a specific budget.
However, various studies have found that the average cost of living in Montana each month is around $1,536. Again, this encompasses expenses ranging from rent/mortgage payments to utilities.
For example, according to property experts Zillow, the median rent for 2-bedroom properties in Montana is $1,600. This is comparable to mortgage rates for same-size properties, which sit at $1,611.
Monthly utilities in Montana are fairly low due to the State’s commitment to renewable energy usage. For example, in 2022, 53% of electricity used in Montana came from renewable sources. According to a report from EPB, the average monthly electric bill in Montana is $112.
The average single adult in Montana spends roughly $250 a month on groceries, which is slightly lower than the national average.
Montana Housing Cost: An Overview
As mentioned above, the average monthly rent or mortgage payments for 2-bedroom properties in Montana is £1,600. However, the cost of housing has been rising considerably in recent years.
For example, a recent report in the Great Fall Tribune stated that many Montatna residents felt as though they were being priced out, with house prices “exceeding national averages and growing 105% since 2017.”
Is Montana Affordable? Evaluating the Montana Cost of Living.
While Montana may not be the most affordable state, it is not the most expensive, either. Furthermore, there are many steps you can take to cut down some of the costs associated with living in this State, such as living outside of the major cities (Bozeman and Missoula). Generally speaking, more affordable areas include:
- Miles City. The average rent for a studio apartment is $500
- Anaconda. The average rent for a studio apartment is $500.
- Butte. The average rent for a studio apartment is $500
- Great Falls. The average rent for a studio apartment is $995.
Predicted Cost of Living in Montana: 2024 & 2025
The cost of living in Montana is expected to continue to rise, in-line with increases across the country. For example, the housing costs in Montana have been rising considerably since 2017, though there are a wide range of properties to choose from.
The Reality of the Montana Price of Living
Before deciding to move to Montana, it is important that you understand the reality of this when it comes to the price of living in the State. This means that you’re able to save up enough money or simply make a more informed decision as to whether or not the move is right for you.
Based on the data gathered above, you should expect to incur some of the following monthly expenses:
- Rent & Mortgage Fees: $1,600.
- Electricity Bills: $111.00
- Groceries: $250.
Of course, this can vary on a case by case basis, depending on your personal circumstances and the kinds of properties that you are interested in.
Is Montana Cheap to Live In? A Closer Look
As outlined above, Montana is not the cheapest state to live in within the US - but it is by no means the most expensive, either. According to various studies, the most expensive states to move to are Hawaii, California, and Alaska, with the least expensive being Mississippi, Kansas, and Alabama.
Furthermore, there are plenty of steps you can take to lower the costs associated with moving to and living in Montana. Setting a monthly budget is always helpful, as it means you have better control over your spending. Working to be a little more thrifty can also help. For example, instead of shopping at chain grocery stores and supermarkets, visit local vendors and markets instead. Montana has a vibrant market scene, and supporting local businesses can not only save you a considerable amount of money but it also means you’re supporting your community, too.
In short, Montana remains one of the more affordable states, despite the rising housing prices in the area. Generally speaking, the costs associated with living in Montana are generally lower than in some other states, making this a great housing destination.
