2024 Cost of Living

The Cost-of-Living Index (COLI) measures relative price levels for consumer goods and services in participating areas. The average for all participating places, both metropolitan and non-metropolitan, equals 100, and each participant’s index is read as a percentage of the average for all places. It is important to note that the COLI Index is not a direct indicator of inflation or deflation, as it is a relative measure. For a more accurate representation of inflation, see CDRPC’s Consumer Price Index (CPI) and Producer Price Index (PPI).

 

Changes in the Capital Region from Q1 2024 to Q4 2024

Throughout 2024, the cost-of-living index in the region fluctuated across all categories. The following changes were observed:

  • Utilities decreased by 3.60%
  • Transportation decreased by 2.99%
  • Housing increased by 5.24%
  • Health Care decreased by 0.71%
  • Composite Index increased by 1.36%
  • Grocery Items increased by 1.58%
  • Miscellaneous Goods and Services increased by 1.01%

These changes suggest a notable increase in housing costs, while utilities and transportation costs saw a decline over the year. The rising cost of grocery items and goods and services further contributed to the overall increase in the composite index.

 

Comparison to Peer Communities

One of the benefits of the COLI index is that it allows for cross-regional comparisons. The Capital District Regional Planning Commission (CDRPC) previously identified peer communities in the 2015 Capital Region Indicators Report. These communities were selected based on the criteria that they are either within 40% of the Albany-Schenectady-Troy MSA’s population size or include a state capital.

In Q4 2024, most peer communities experienced below-average numbers across most categories.

  • Des Moines, IA, Baton Rouge, LA, and Buffalo, NY continued to record some of the lowest overall cost of living values.
  • Albany-Schenectady-Troy maintained COLI values above its peer communities in Q4, following similar trends over the past year.
  • Hartford, CT remained an outlier in the Utilities category, reporting an index of approximately 130.3, the highest among peer metros.
  • Housing costs in Des Moines, IA continued to be among the lowest, with an index of around 66.1 in Q4 2024.
  • Utilities in Baton Rouge, LA remained significantly below average, with an index of around 69.6 in Q4 2024.

These trends highlight that while Albany-Schenectady-Troy remains more expensive than many of its peer communities, its cost increases were moderate compared to outliers like Hartford (Utilities) and Des Moines (Housing).