Montana Is Near The Top For Wage Increases, But Does It Matter?

It's no secret that living in Montana isn't cheap. In fact, certain parts of the state are costly (Big Sky, Bozeman, Missoula, Whitefish). If you spend any time in those areas, you will no doubt hear folks talk about how housing costs are out of control.

Of course, it's not just housing costs; it's everything else as well. I just had a conversation with someone who recently visited Southern California, and he mentioned how everything was considerably cheaper there.

Could that be possible?

Are parts of Montana more expensive than parts of California? That certainly wouldn't explain why so many of them continue to move here, but I digress. You see, all the complaining about the high cost of living can stop, because according to new data, wages in Montana are growing faster than anywhere else.

READ MORE: Why are so many locals upset about the growth of Bozeman?

According to ADP Pay Insights, wages in Montana are outpacing the national average by a significant margin. The data suggests that the average wage in Montana increased by almost 6 percent from last year, making it one of the biggest jumps in the country.

Oh, and in case you were curious, the average median salary in Montana is now almost 65 thousand. So, let's do a little math, shall we?

Let's say you have a two-income family. Will be generous and say that one person makes 90 thousand a year, and the other makes 70 thousand, combined that's 160 thousand a year.

Throwing those numbers into a Mortgage Loan Calculator says that on 160 thousand a year, with a nice down payment, you can afford a 600 thousand dollar home. Now, in some parts of Montana, that would get you a very nice home, but in places like Bozeman, that will get you a Townhouse.

Plus, most Montana couples aren't making 160 thousand combined.

I think it's great that wages are going up; however, keep in mind that the more we make, the more businesses tend to charge, so I'm not sure we really come out ahead. However, we do live in a beautiful place, the scenery is stunning, there are lots of outdoor activities, and fishing is pretty good.

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For those looking for a better deal, I'm told Southern California is very nice.