How much does it cost to live in Ennis?

A recent report commissioned by the Big Sky Chamber of Commerce and conducted by ECOnorthwest spotlighted a burgeoning cost of living crisis in both Ennis and Big Sky. The study underscores the financial strain on service workers in these picturesque, yet increasingly expensive parts of Madison County. 

According to the report, the cost of living for essential workers in Ennis is 29.9% higher than the national average. While this figure is less staggering than Big Sky’s 53.5% premium, it still points to a troubling trend that affects the backbone of these communities. The data, gathered by the Council for Community and Economic Research (C2ER) in Arlington, Va., and supplemented by ECOnorthwest, paints a vivid picture of the economic challenges faced by residents.

The report utilizes a relative cost of living index, which compares local costs to the national average. Ennis’s relative COLI places it—among the more than 300 locations studied—18th highest in the U.S., sandwiched between Alexandria, Va, and Juneau, Alaska. Big Sky’s relative COLI for service workers ranks it as the fifth most expensive place to live in 2023, comparable to Brooklyn, N.Y., and Orange County, Calif. 

From staple foods like ground beef, sausage, and tuna to household essentials such as milk, eggs, and bread, the report reveals a diverse range of expenditures across various categories. Discretionary spending on items like coffee, soda and frozen meals further illustrates the varied spending habits and consumer preferences in today’s market landscape.

Beyond groceries, the report highlights services like rent, home maintenance and healthcare expenses, including dental and medical visits. 

“Groceries, housing, and miscellaneous goods and services were all substantially more expensive,” states the report, which the Big Sky Chamber released on June 26. Miscellaneous goods and services encompass dining out, apparel, entertainment, personal care items, healthcare and other services.

In Ennis, tourism continues to strain the local housing market, with service workers facing housing costs that are 66.2% higher than the national average. This financial burden forces many to commute from more affordable areas. 

Approximately 89% of Ennis workers commute from outside the town, driving an average of 78 miles round-trip each day. This daily journey costs workers $51.02 in vehicle expenses alone, amounting to $10,203 annually. When the opportunity cost of lost personal time is factored in, the total annual commuting cost balloons to more than $16,000, according to the report. 

For comparison, service workers in Bozeman face a combined commuting and opportunity cost of $8,293 annually. This stark difference highlights the additional financial burdens shouldered by Ennis’s workforce. Bozeman, while also experiencing high living costs, is still more affordable than Ennis and Big Sky. The cost of living for service workers in Bozeman is 15.7% higher than the national average, but lower than in Ennis.

According to a separate report by the Argonne National Laboratory, rural residents in the western mountain states spend about 30% more annually on fuel than those living in cities and suburbs. This adjustment was incorporated into the cost of living analysis for Ennis, reflecting the higher transportation costs faced by its residents.

The report’s authors, Bob Whelan and Natalie Walker of ECOnorthwest, sampled consumer prices in Ennis and Big Sky this past April. It showed that many Ennis residents adapt to high local prices by splitting their shopping between local stores and more affordable options in Bozeman. ECOnorthwest used Placer.ai location analytics software to determine the home zip code of visitors to retail stores and calculated the share of Ennis residents that shop at stores in Bozeman. The data shows that Ennis residents did 21.1% of their retail shopping in Bozeman.

Whelan and Walker’s big takeaways are clear: “Big Sky and Ennis are expensive places to live for service employees. We found that it costs 46% more to live in Big Sky and close to 30% more to live in Ennis than in the average U.S. city in 2023.” 

The report’s conclusion includes the phrase, “While it is cheaper to live in Bozeman…” which is not something Montanans hear every day, as Bozeman is commonly considered an expensive place to live by Montana standards.

Big Sky and Ennis have Bozeman beat, with commuters taking the hit, according to the report’s findings. 

“The annual combined inferred cost of driving and time lost commuting further is about $13,750 for Big Sky and $16,100 for Ennis service workers. If the average person working in Bozeman switched to a job in Big Sky or Ennis, they would pay an additional annual commuting cost of $5,460 or $7,780, respectively,” wrote Whelan and Walker. 

The report’s authors wrapped it up with: “The value of lost time due to commuting changes with occupation and household composition. For example, households with young children would likely value their time at home more than those living single.”

The report delves into the hidden costs of commuting for Ennis’s workforce. 

“Time value is a significant factor. It’s not just gasoline and car. It’s not all out of pocket,” the report emphasizes. “When you go up the income ladder, the time value and people’s perception change. That has a cost to society.”

In a follow up phone interview, Whelan pondered: What’s more valuable, a job that’s 40 minutes away, or one that pays less but is right across the street? 

“Service workers in Big Sky and Ennis, they're being priced out by financially better-off people. And that has a cost to society,” said Whalen. “So you either have to make sure you provide housing for service workers or you’re going to have problems that arise like this. This is a problem in a lot of places. Vail, Colo., has this problem.”

So does Crested Butte, Colo. A recent article in the trade publication Hotel News Now, quoted a hospitality executive who said staffing in Crested Butte depends on local teenagers still living with their parents. 

“I think the town is being run by 15-year-olds," he said. "That's the local labor force because nobody else can afford to live there."