For some folks, being “below average” may be a bit of a downer.
Not so for some people who live in the Quad Cities area – Prescott, Prescott Valley, Chino Valley and Dewey-Humboldt.
That is because being “below average” on the national Cost of Living Index issued by the Arlington, Va.-based Council for Community and Economic Research (C2ER) revealed that what is known as the Prescott, AZ Metro Urban Area had consistently been below the national base average of 100.
And that was true for all three quarters of 2013.
The composite score for the Prescott Metro area was 96.6 for the first quarter, 98.6 for the second quarter, and 97.6 for the third quarter, which just ended in September.
The third quarter composite number is based upon averages of weighted scores in six categories: Grocery Items, Housing, Utilities, Transportation, Health Care and Miscellaneous Goods and Services.
Of the Metro/Urban communities in Arizona that are studied by the C2ER, that score placed Prescott smack in the middle.
Those with higher third quarter scores were Lake Havasu City (101.9); Yuma (103.2); Scottsdale (113.9); and Flagstaff (115.6).
Those with lower scores were Bullhead City (92.2); Tucson (96.4); Sierra Vista (96.9); and Phoenix (97.3). (See accompanying story to learn how the COLI are calculated).
Community Leaders’ Reactions
The mayors of both Prescott and Prescott Valley are jubilant about continuing below average COLI figures.
Prescott Mayor Marlin Kuykendall said, “We’re fortunate to live where our moderate climate is not extreme – no hot summers and no bitter winters. Summer air conditioning is really not needed, especially during monsoons; and winter heating is really not that expensive because we don‘t get that cold. Utility costs are reasonable.”
He also cited a highly competitive marketplace, which he believes keeps prices equitable for consumers.
“In this essentially rural region, we have two Home Depots, a Lowe’s, Costco, Sam’s Club, Trader Joe’s, Dick’s Sporting Goods, soon to be three Walmarts – and others. Many larger cities would love to have those stores. We’ve become a regional shopping center for everyone north of Phoenix.”
Mayor Harvey Skoog of Prescott Valley praised the diverse medical personnel and their facilities for providing quality health care.
“We’re fortunate, too, in having so many dedicated elected officials who work with paid staff in our communities to keep government costs under control.”
Staff and economic development personnel from both Prescott and Prescott Valley concurred that competitive markets help keep costs down.
Gary Marks, executive director of the Prescott Valley Economic Development Foundation, said, “Our lower cost of living is attributable to four things: cost of housing, which dropped after the recession; really competitive pricing among grocery supermarkets; lower utility costs because we don’t have extreme weather conditions; and a dedicated medical community that provides excellent health care without ‘big city’ costs.”
Marnie Uhl, CEO of the Prescott Valley Chamber of Commerce, agrees with Marks. She is cautious, though, and said, “I really suspect it hinges on our housing costs.”
Town of Prescott Valley economic development manager Greg Fister echoed Uhl.
“I think, without question, the drop in cost of housing during the Great Recession has really driven housing costs down. A question I can’t answer is where that number will be in the next three years. I suspect it will creep back up to average [100].”
Jeff Burt, director of economic development for the City of Prescott, said he believed the economic stability in the area “…is linked to three major factors: increasing tourism, successful smaller industries and exceptional higher education opportunities.”
Community Resources and Amenities Considered a Plus
Tom Bentley, a former Flagstaff banker who retired 20 years ago to Dewey, suggested that the diverse recreational and cultural resources in the area help sustain solid economic growth.
He laughs about when he moved to Dewey, “I remember when there was just one stoplight between here and Prescott. And look at it now. But without doubt, this area has the altitude, the climate and the opportunities people are looking for. For instance, what other small rural area in Arizona has four higher education institutions immediately available to students?”
Bentley was referring to Yavapai Community College, Prescott College, which offers baccalaureate and graduate degrees, Northern Arizona University, which has branches in Prescott and Prescott Valley; and prestigious Embry-Riddle Aeronautical University, one of the nation’s premier aviation and aerospace institutions.
Another retiree who moved to Prescott Valley several years ago is Doug Wall. Wall, a principal in the Flagstaff law firm of Magnum, Wall, Stoops and Warden, is also a past chair of the Arizona Board of Regents and former chair of the University of Arizona Medical Center board of directors.
“I really do believe that local people who want college degrees can take advantage of below average tuition through the community college or at the NAU branch, where tuition is reduced to half that of the main campus,” said Wall. “I believe our medical costs are lower, too, because so many people from the medical community really want to live here, even though they make less money. They enjoy the high quality of life we have here.”
He noted the no cost or low cost outdoor recreational activities that can be enjoyed year-round – hiking, biking, camping, and fishing and so on.
Quality of life at a reduced cost was also mentioned by two Prescott BBVA Compass bankers.
David Earl, vice president for investments, said, “People I work with routinely tell me they like the diversity and variety of opportunities here. They tell their friends that, so their friends decide to move here, too.”
Earl’s colleague, bank executive Melody Eastlack, believes strongly that new businesses will continue moving to Prescott because of the below-average cost of living.
“I find it encouraging to see businesses like Trader Joe’s and Dick’s Sporting Goods. Those kinds of corporations don’t open stores where they are not likely to succeed. Rumor has it – and I emphasize rumor – that TJ Maxx is looking here, too. We’ve also heard a couple of outlet stores are exploring the area.”
COLI Figures Not Fixed
Prescott Chamber of Commerce CEO Dave Maurer, whose staff collects the area’s cost of living data for analysis by the national Council for Community and Economic Research, is optimistic, yet cautious, about predicting an immediate upswing in the economy.
“We’ve some unique characteristics in this region. We need to nurture them carefully. Our overall population base, on which the COLI index is based, is about 100,000 for the greater area. But the cost of living is fluid – constantly changing, contingent upon many external forces, too. We need to remember that cost-of-living numbers are not constant. They are, at the time we see them, a ‘snapshot in time.’ But for the time being, we can be grateful we’re yet ’below average.’”
Even though he is aware of the fluidity of the COLI, Prescott Mayor Kuykendall says this: “When you score a below average cost of living and combine it with the greater Prescott area’s high quality of life, it’s a winning combination.” QCBN
By Ray Newton
Quad Cities Business News
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