The EDCUtah’s Research Minute highlights interesting economic development data and timely research insights. This month, we discuss EDCUtah’s participation in a national cost of living index and how Utah measures up.

When a new corporate expansion or retention project is considering Utah for a business location, EDCUtah’s research team provides several reports to the client. One of these reports, the Operating Cost Comparison, measures the cost of doing business in Utah against other regions being considered by the company. We include wage estimates, real estate prices, utility rates, taxes, and the cost of living index.

Cost of living impacts the decisions of both individuals and companies, and site selection consultants often compare the cost of living in Utah against other states in the region. How does cost of living impact business? In some instances, a higher cost of living in a particular area may mean employers must offer higher salaries to attract and retain workers. Additionally, higher cost of living can translate to higher building costs and operating costs for the company.

How is cost of living calculated?

Each year, researchers and regional organizations like EDCUtah collect cost of living data and submit it to the Council for Community and Economic Research (C2ER). C2ER compiles the data into a national index that measures cost of living differences among metropolitan areas. We collect price data in six categories: housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. The average of all locations that collected data that year is set to 100, and regions are then compared as a percentage above or below the average.

Policy impacts pricing! In this quarter’s collection, we noticed that the cost of name-brand insulin is down significantly. This likely reflects recent changes in legislation and the availability of insurance-covered alternatives for those with type 1 diabetes.

What can we glean from this data, and what are the limitations?

Because the cost of living is measured at a specific point in time and the composition of data participants changes slightly each quarter, the index cannot be used to measure price increases over time. However, it is useful to compare regional costs in relation to each other and to the nation as a whole. It’s especially helpful for comparing different regions that may be experiencing similar trends in inflation, housing costs, and more. This index is often cited in national news by outlets including Wall Street Journal, Forbes, CNNMoney, US News and World Report, and ABC News.

How does Utah measure up?

C2ER recently published their 2023 cost of living index, which is calculated based on the average of the previous three quarters of data. Salt Lake City received a score of 108.7, St. George 107.8, Provo 103.6, Ogden 99.9, and Cedar City 96.2.

The main reason many Utah metros measure above the national average is the price of housing—which includes both purchase price and apartment rents. The rest of the country has also seen rapid increases in housing costs, and housing costs continue to be a pain point for states including Utah, Idaho, Arizona, Washington, and Colorado.

Utah’s index scores are similar to or lower than the index scores of markets we often compete with. The index score for Miami is 116.9, Denver 110.3, Reno 104.4, Phoenix 101.9, Austin 98.9, Atlanta 98.3, and Charlotte 96.5. Utah metro areas are competitive in terms of affordability and provide a balance between costs and quality of life.

Technology’s impact on data collection

EDCUtah recently finished our first quarter data collection for four Utah metropolitan statistical areas (MSAs): Salt Lake City, Provo-Orem, Ogden-Clearfield, and the St. George metros. In the past, EDCUtah collected local data for the Salt Lake, Ogden, and Provo metros, but we recently added the St. George metro due to process developments that allow data to be collected remotely. Previously, grocery prices were collected by walking through each store—five stores per metro—and writing down prices. As grocery delivery services became more prevalent over the last few years, this data became more widely available online, which allows for web scraping.

Research activities that put Utah on the map

One of the competencies that sets EDCUtah apart from other economic development organizations is our focus on quality research and economic data. Not only do we provide reports that inform decision-makers as they evaluate Utah for their next business location—we also represent Utah communities in valuable data collection projects that contribute to economic benchmarking.

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For additional information or to schedule an interview, please contact us.

The EDCUtah’s Research Minute highlights interesting economic development data and timely research insights. This month, we explain a change in the way the federal government defines and evaluates Utah regions based on the huge population growth in Utah over the past several years.

One of the competencies that sets EDCUtah apart from other economic development organizations is our focus on quality research and economic data. EDCUtah’s research team provides data to:

• Help companies choose Utah for their next business location.
• Inform decision-makers with best-in-class economic research.
• Support Utah communities in identifying their competitive advantages.

Last fiscal year, EDCUtah completed 187 research requests for more than 50 projects. We also regularly update our research publications to keep a pulse on how Utah compares against regional and national competitors. For the purposes of our research, EDCUtah defines communities according to US Census Bureau defined Core Based Statistical Area (CBSA) boundaries. CBSA boundaries are used in all governmental data sources for reporting data for community regions. They provide a helpful framework for comparing locations across the nation.

The US Census Bureau recently made changes to Utah’s Core Based Statistical Areas (CBSAs) as part of their normal update rotation. The Census Bureau looks at both metropolitan statistical areas and micropolitan statistical areas and makes any necessary updates every five years. Utah’s areas have not been changed in more than a decade, but changes were made in 2023 based on population center guidelines that the US Census Bureau uses to determine the areas.

These changes impact how data is collected and reported by the federal government and how Utah is perceived by site selectors and companies considering Utah for expansion opportunities.

The Salt Lake City, UT MSA is now called the Salt Lake City-Murray, UT MSA. The boundaries of the MSA remain the same and include both Salt Lake County and Tooele County. The Provo-Orem, UT MSA is now called the Provo-Orem-Lehi, UT MSA. The boundary for this MSA remains the same as well, encompassing Utah County and Juab County. The Logan, UT-ID MSA, comprised of Cache County and Franklin County, ID has not changed, nor has the St. George, UT MSA, which includes just Washington County.

In northern Utah, the US Census Bureau changed the boundaries of one metropolitan statistical area and created a new micro area. The Ogden-Clearfield, UT MSA was renamed the Ogden, UT MSA and now includes Davis County, Weber County, and Morgan County. Box Elder County was removed from the former MSA and assigned to a new micropolitan area called the Brigham City, UT-ID micro area. This new micro area also includes Oneida County, ID.

Rich County has also been added to the Evanston, WY micro area, which was renamed the Evanston, WY-UT micro area. Utah’s other four micropolitan statistical areas remain the same.

These changes reflect the significant growth that Utah has experienced over the past decade, both on the Wasatch Front and off, particularly for Brigham City and other population centers in Box Elder County. Utah’s population growth over the last decade is the highest in the nation at 18.4%. This is more than double the national average of 7.4%. While the old 2020 map is still available online, the US Census Bureau has not yet released new maps that reflect the recent changes. It will take time for these updates to be made on government and private websites and to be reflected in data and available resources. EDCUtah will make necessary adjustments to our data and marketing materials as this new information becomes available.

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Want more data? Explore the benefits of investing with EDCUtah.

For additional information or to schedule an interview, please contact us.