Cost of living, one of the primary quality-of-life factors people and companies consider in making living and locating decisions, has become a more important part of the equation this year as remote work has boomed with the COVID-19 pandemic.
That’s according to a new report from the Baton Rouge Area Chamber written by Andrew Fitzgerald, senior director of business intelligence. The sentiment is especially true considering news reports of newly untethered tech sector and other workers moving out of large cities to smaller cities in search of a better quality of life.
While a number of quality-of-life factors influence which metro areas get the most new residents, cost of living is one factor by which the Baton Rouge area leads in comparison to the average U.S. metro area.
The Council for Community and Economy Research produces a cost-of-living index every quarter. The third-quarter results for 2020 show that the Baton Rouge area is less expensive than the average American city (4% less), but middle of the pack regarding peer cities and those with which we compete for economic development projects.
According to the index, some costs—health care, restaurants, and services—are above that of the national average, potentially due to regulatory costs such as licensing fees. Occupational licensing reform, as well as revamping local permitting processes, are part of potential solutions to these costs.
Utility costs, transportation, and housing are all highlights for the region. As companies are looking to recruit or retain talent, the fact that housing is 10% below the national average, and significantly lower than places like Dallas and New Orleans, is a plus. Read the full report.
