Why is Montana so Expensive? (7 Main Reasons)

Hello and welcome to our website! In this article, we shall answer the question, “Why is Montana so expensive?” To start with, Montana is known for its breathtaking landscapes and wild frontier. However, many people don’t realize that living in Montana comes at a cost.

The cost of living in Montana is significantly higher than in most states across the US. So, if you’re considering relocating to Montana, it’s important to understand why the state can be so expensive and how to manage costs accordingly.

Why is Montana so Expensive?

1. High tax rates

High tax rates

The average homeowner faces an effective property tax rate of approximately 1.26%, which is higher than all but a handful of states throughout the country. Moreover, sales taxes vary across counties, but statewide it stands at 6%. This means that everyday items like food and clothing cost more than they would do elsewhere in America due to this additional burden imposed by sales tax charges.

2. Expensive housing facilities

Expensive housing facilities

While real estate prices have decreased since their peak in 2006-2007, they remain higher than much of the rest of the country. This makes finding an affordable home difficult for those who want to relocate there or move from one part of Montana to another. Additionally, rental prices are also quite high and rent increament is common due to limited availability and growing demand for rental properties.

3. High transport High transport cost

With limited public transportation options, many people must rely on their own vehicles to get around, which can be very expensive when you factor in fuel and maintenance costs.

Additionally, shipping anything into or out of the state can be very pricey due to its remote location and lack of infrastructure. It’s not uncommon for goods bought online to be significantly more expensive if shipped from Montana than from other states.

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4. Expensive electricity bills

Expensive electricity bills

The average price per kilowatt hour in Montana is one of the highest in the country at $0.09 – more than double the national average of $0.04. This high cost translates directly into higher monthly electricity bills for all Montanans, whether they are residential or commercial customers.

5. High cost of Food

Many basic grocery items like milk and eggs tend to be much more expensive than they would be in other states due to higher transportation costs and fewer options available at stores. In addition, organic produce tends to be much pricier as local farmers often charge a premium for their products.

6. Expensive healthcare services

Expensive healthcare services

Expensive healthcare services make it more difficult for families to access quality healthcare, leading to higher medical expenses over time. The cost of prescription drugs can also be a financial burden in.

In addition, many rural communities have limited access to lower-cost generic medications because they lack pharmacies and hospitals in their area. The lack of competition within these markets further drives up the costs of essential medications and treatments.

7. High fuel prices

High fuel prices

There are a number of reasons why gas prices in Montana are expensive. First, due to its remote location, the cost of transporting fuel into the state is higher than in some other areas. This ultimately results in higher fuel costs for Montana citizens.

Another factor that contributes to high cost of fuel in Montana is the lack of competition among suppliers. Because there are relatively few businesses in rural areas, they have more control over pricing as there’s less competition driving prices down.

As a result, many Montanans find themselves paying more than they would elsewhere for fuel.

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Things Montana is known and famous for

a) Yellowstone National Park

Yellowstone National Park
Photo Credit: Super simple salty life

Located in the northwest corner of Montana, Yellowstone National park is home to some of the world’s most iconic natural features including geysers, hot springs, canyons and a variety of wildlife.

Yellowstone National Park was established as America’s first national park in 1872 and it continues to be one of Montana’s greatest offerings today. Tourists come from all over the world to see Old Faithful erupting up from the ground or catch a glimpse of bison grazing on rolling hillsides.

Visitors can explore miles and miles of trails into backcountry areas full of wildlife or take advantage of educational activities like guided tours and lectures at town centers around the park.

b) Bighorn Mountains

Bighorn Mountains

The Bighorn Mountains are covered with forests of Douglas fir, spruce, and lodgepole pine trees. They offer breathtaking views for miles in every direction. Wildlife abounds here too – you can find elk, deer, bears, mountain goats and bighorn sheep roaming around in their natural habitat. The area is also home to several ski resorts that provide excellent winter recreation opportunities.

c) Lewis & Clark Cavern State Park

Lewis & Clark Cavern State Park
Photo Credit: Backyard Montana

Lewis & Clark Cavern State Park is also located in south-central Montana. This geological wonder was discovered by William Clark in 1805, who found it while exploring the region with Meriwether Lewis. Today it remains one of the largest and best-decorated limestone caverns in the northwest United States. The park offers visitors a variety of activities such as camping, guided cave tours, hiking trails and much more.

d) Triple Divide Peak

Triple Divide Peak
Photo Credit: Montana Earth science picture of the week

Situated in Glacier National Park, Triple Divide Peak marks the division between three different drainage basins: Hudson Bay to the north, the Pacific Ocean to the west, and the Gulf of Mexico/Atlantic Ocean to the south.

This makes it one of only two places on earth where this phenomenon exists naturally. Triple Divide Peak is also home to incredible wildlife and breathtaking views from its summit elevation of 8019 feet above sea level.

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In conclusion, Montana is a beautiful and unique state, but the cost of living is high. The average home price, property taxes, groceries, and healthcare costs are all contributing factors to the expense of living there. It’s important to remember that jobs in Montana pay higher wages than in other states, which can help offset some of these costs.