Living costs in Springs at 18-year low in 2008

Despite record gasoline prices last July, living costs in the Colorado Springs area fell last year to an 18-year low, mostly because fuel prices rose more slowly locally than in the rest of the nation, according to a national survey.

Local living costs were 7.2 percent below the national average during 2008, the lowest level for any full year since 1990, according to a quarterly survey of 322 metropolitan areas by the Council for Community and Economic Research. Living costs in the Springs have declined compared with the national average every year since 2003.

"This is good news; the last time we saw numbers this weak, it was a significant economic development advantage. Hopefully, the low costs will again attract jobs here," said Fred Crowley, senior economist for the Southern Colorado Economic Forum.

The local index fell mostly because its transportation component, which primarily measures gasoline prices, dropped from 4.2 percent above the national average during 2007 to slightly below the average last year. That's because local gasoline prices, which had been 3 cents below the national median, rose 22.6 percent to $3.25 a gallon, while the national median price jumped 31.4 percent to $3.44 a gallon.

Other components measuring local housing and grocery costs rose slightly, but remained below the national average, while local health care costs moved even further above the average. Costs for local utility service and miscellaneous items both moved further below average.

The council's cost-of-living index doesn't measure inflation, but instead compares prices for 57 goods and services bought by households in which middle managers live. It's designed to compare living costs for people moving to another city.

Among other cities in the state, living costs in Boulder were 23.3 percent above the national average last year, while Denver and Grand Junction were 5 percent and 1 percent above the average, respectively.

Costs in Fort Collins were 4.7 percent below the national average, while Greeley was 2.4 percent below the average and Pueblo was 12.9 percent below the average.

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