As the covid pandemic enters the the ninth month in the US, many aspects of the economy have slowed or stopped, but appear to have no or little effect in the cost of living in the United States, specifically in the city of Colorado Springs, CO. You would think that it would be the opposite and on the decline, but that is not the case. There are a lot of factors that come into play when figuring out the cost of living. You have to take into account the residential market, taxes, ammendities, and so on.
Not only are people looking for what the cost of living is while moving, but they are also looking to this when looking for a new job. How much is it going to cost me if I accept a position in another state. Is the cost of living in the rural part of that city cheaper? If so, what is the commute? These are all questions being asked when looking for a new home or apartment.
What is Cost of Living?
This is the amount of money needed to cover all basic expenses. What are basic expenses?
With all these factors you will want to compare to the city you are currently live in to the city that you are planning on moving. For example, you currently reside in Frankfort, IL and are moving to Phoenix, AZ. You will be moving from a suburban town to a large city. The expenses are going to be higher in Phoenix, due to it being a large city, compared to living in suburbs. A lot of times people will purchase their homes outside of the city and commute, bringing down the cost of living.
Case Study: Colorado Springs, CO
A Community and Economic Research Council did a study and found that the cost of living index in Colorado Springs was the highest it has ever been in 23 years.
The housing market in this location has been on the rise for the past five years. This trend is due to the booming housing market. They found that not only is the cost of living, but the housing cost index has been exceeding the national average by 100%.
Despite the pandemic, why is the cost of living increasing?
Many experts explain it as residents from major cities such as Denver and other cities are moving to smaller suburban areas to escape those high cost of living. Which in turn is starting to raise their cost of living. It is becoming tough for home builders to keep up with the demand. Which is increasing the costs of construction materials and adds more expenses.
The experts have also found that utility costs and transportation cost are not declining but are rising. The national gas prices fell on average 19%, but in Colorado Springs they only saw a fall of about 5%. So while the rest of the nation are seeing prices around $2.18, Colorado Springs is seeing a price tag of about $2.48.
So far in the state of crisis the American people are in, over 20 million people are receiving unemployment. With the type of situation that is currently unfolding in Colorado, it is making it less and less affordable for people who have a lower income. This is causing people to struggle to pay rent and or their mortgages. People that are currently moving out of larger cities to escape higher costs of living and moving to smaller cities and towns are actually increasing that area’s cost of living.
Many cities throughout the nation have received an increase in funding. The CARES Act is a major contributor to the rise in federal funding. The funds are being spent on recovery programs to help these low-income residents.
Some of these programs consist of: helping to avoid evictions, small business assisstance, preventing homelessness and providing help for families that may have already been homeless or have become homeless due to the pandemic. The city of Colorado Springs has receive about $10 million, which is double their annual allocation.
Prices Continue to Increase
We are not just seeing an increase in Colorado, but in many other states as well. The pandemic has created a trend of people moving out of large cities and ending up in smaller cities and towns. Not only is the housing market feeling the increase, but local businesses are as well. Just think as more people are moving into these towns, the consumption of food, gas, and utilities are increasing as well. Thus raising the prices of these commodities.
Read the original article “High living costs continue to rise in Colorado Springs despite COVID-19 pandemic – KRDO” at https://krdo.com/news/top-stories/2020/11/10/high-cost-of-living-in-colorado-springs-continues-to-rise-despite-covid-19-pandemic/