Housing prices build favorable cost-of-living results for Greeley

In a budget-conscious society, Greeley has a leg up on the rest of Northern Colorado as the cheapest city in which to live.

In the latest quarterly cost-of-living index produced by the American Chamber of Commerce Researchers Association, Greeley registered at 95.9, or 4.1 percent below the national average of 100. Loveland was also a notch below average at 99.3; Fort Collins was the most expensive city in the region at 102.2.

The ACCRA index, which is aimed at mid-level managers who might be looking to relocate, reflected costs in the fourth quarter of 2003.

ACCRA measures variables in the categories of grocery items, housing, utilities, transportation, health care and miscellaneous goods and services of the major cities in each state. Each of these categories is weighted differently to give the final composite index for each city.

For the three cities measured in the Northern Colorado region, there were some categories that reflected large variances between such geographically similar cities.

Greeley housing cost lowest

Greeley came in lowest in the housing index with a 93.9. Loveland followed at 104.4 with Fort Collins close behind with 105.1. The large range between Greeley and the other cities accounts for its much lower composite index, as housing is weighted for 29 percent of the final rating.

Components of the housing index include: monthly rent for a two-bedroom, 950-square-foot apartment; the total purchase price for a new, 2,400-square-foot home in an urban area; mortgage rates, and principal and interest on a mortgage.

The price of a new home presented the greatest difference between area cities. The home price measurement for Greeley was $229,467. A similar home in Fort Collins would cost $263,943 and $253,579 in Loveland.

“Mass cookie-cutter homes arent being built in Fort Collins,´ said Jerry Crawford, president of the Fort Collins Board of Realtors and managing broker/partner of Crawford-Neal GMAC. Crawford also cited the presence of a major university as an employer as a reason for Fort Collins higher housing costs.

“UNC is just not at the same level as CSU or CU,” he said.

The growth-control environment in Fort Collins results in higher property value, according to Crawford. He also attributed the high housing costs in Fort Collins to the many trade publications that list Fort Collins in their “best places” lists. He said this raises demand, which in turn raises costs.

Crawford, said he would like to see housing become more affordable in Fort Collins.

“Its bad when a Fort Collins police officer has to live in Wellington because housing costs too much,” he said.

In June, the Fort Collins Board of Realtors will host an affordable housing summit to gather together different agencies, companies and organizations in order to find a solution to Fort Collins high housing costs.

Costs high in Fort Collins

Transportation costs in Fort Collins exceed the other Northern Colorado cities by a large margin.

The items measured for the cost of transportation include: one-way commuter bus fare; the average price to balance one front wheel on a vehicle, and the price of one gallon of regular unleaded gasoline.

Fort Collins and Loveland both had bus fare listed at $1. Greeley did not have a listing for bus fare on the ACCRA cost of living index, but the city Web site lists adult fare at $1 also. The gasoline prices varied by 1.8 cents between all three cities.

The difference between cities here was most prevalent in the tire balancing measure; the cost to balance one tire is $9.32 in Fort Collins, $8.40 in Loveland and $7.37 in Greeley according to the ACCRA report. This measure, however, would fluctuate from company to company. Transportation is weighted at 10 percent of the composite index.

Health Care

Loveland was rated at a much lower cost for health care costs than the other two cities. Both Greeley and Fort Collins came in at just over 110, but Loveland rated at 98.7.

The items measured for the health care costs include: the average cost for one day in a private room at a hospital; the cost of a visit to a doctors office; the cost of a visit to a dentists office, and the cost of 50 tablets of Advil.

Loveland had lower costs in all categories. The ACCRA report recorded a one-night hospital stay in Loveland at $785, in Fort Collins at $798 and in Greeley at $950.

The high hospital room costs in Greeley might not be a solid indicator, according to Kent Madsen, CEO of United Medical Alliance. He said the room rate is only one of many components for a hospital bill.

“Theres a lot of other things to be looking at,” Madsen said. Hospitals can keep room rates low while raising other costs.

” I wouldnt make a major decision based on that piece of information,” he added.

Overall, Northern Colorado is relatively average in its cost of living as compared to the rest of the state. The 2003 index also reflected a downturn in costs since 2000 for Loveland and since 1997 for Greeley and Fort Collins.

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