The Town of Pagosa Springs and Archuleta County remain the most expensive places to live for a family of four in southwest Colorado, according to a study released Feb. 6 by the Region 9 Economic Development District.
“We found that in Region 9, Montezuma County is the least expensive… and Archuleta County is the most expensive,” Region 9 states in a summary of its findings.
Region 9 encompasses the southwest corner of the state, and includes Archuleta, Dolores, La Plata, Montezuma and San Juan counties, as well as the Southern Ute and Ute Mountain Ute Indian tribes.
Region 9 reports that for a household of two adults with two children, one in preschool and the other school age, the estimated annual living expenses in Archuleta County are $105,919 — a figure driven “primarily” by housing costs.
That same family living in La Plata County would need to earn $104,827 and $91,519 in Montezuma County, according to Region 9.
“Using housing costs specific to each community we found that Pagosa Springs is the most expensive community in the region for a family of four,” the report states, with each working adult needing to earn an estimated $25.08 per hour for a livable wage.
Region 9 defines a livable wage as “the level of income necessary to meet basic needs without public assistance,” according to a statement prefacing the latest findings.
By that measure, a single adult with no children living in Pagosa Springs would need to earn $22.39 hourly, or $47,296 annually. A single adult with one child in preschool would need to earn $39.09 hourly, or $82,552 annually, according to the report.
Region 9 found Cortez and the town of Dolores to be the least expensive communities in the region, with each working adult in a family of four needing to earn $18.74 hourly in Dolores and $18.93 in Cortez.
“When people earn less than a livable wage,” the report notes, “they may have to work multiple jobs, longer hours, or make difficult choices to cover the costs of basic needs like food, housing, transportation, and healthcare. Costs for quality childcare and housing continue to strain family budgets across the region.”
According to its report, Region 9 has estimated livable wages in the southwest region since 1999. To form its 2024 update, Region 9 drew upon expenditure estimates prepared by the University of Washington School of Social Work, which compiled data for the five counties in the region.
Wages by job sector
Using 2023 data from the Quarterly Census of Wages (2024’s was not yet available), Region 9 found that, in the region, “most employment sectors do not provide enough income to meet the basic needs of a family of four.”
Across the region, wages from jobs in local government (13 percent), health services (11 percent) and retail trade (11 percent) were all considered inadequate.
“These occupations do not provide sufficient wages to support a family of four,” the report states.
By contrast, Region 9 recognized jobs in the mining and utilities sectors, as well as in “professional and management services,” as broadly providing livable wages for families of four.
In Archuleta County, accommodation and food services accounted for the most jobs in 2023, totaling 1,015. Region 9 considers those jobs “low wage,” with average annual earnings of less than $36,406, according to the report.
Construction and retail trade were the next biggest employers in the county, with construction workers earning “mid wage” incomes between $36,406 to $54,608, and retail workers falling in the “low wage” category.
Wages for the 801 local government workers in Archuleta County were considered “high” in 2023, the report notes, with average earnings of more than $54,608.
The four leading job sectors in Dolores County — agriculture, local government, accommodation and food series, and retail trade — all provided employees with incomes that fell beneath the “low wage” threshold.
The leading job sectors in La Plata and Montezuma counties all provided “mid wage” incomes, according to the 2023 data.
Housing
“We found that in almost every community actual rental costs are substantially higher than Fair Market Rent estimates,” the report states.
In Archuleta County, the most expensive in the region for renters, the median rental cost for a single-bedroom residence was $1,750. A fair market rent estimate for the same residence, drawn from surveys conducted by the Department of Housing and Urban Development, was $1,063.
For a two-bedroom rental in Pagosa Springs, the median cost was $2,000; its fair market equivalent was $1,397.
Actual rental costs in La Plata and Montezuma counties were similarly higher than their fair market equivalents.
Closing the gap
In its summary, Region 9 notes discussions taking place throughout the region aimed at making housing and child care more affordable for working individuals and families.
“Closing the wage gap between current wages and self-sufficiency wages require both reducing costs and raising incomes,” the report notes.
In addition to reducing the costs of housing and child care, Region 9 also advocates for workers and employers to “work together in achieving a living wage,” as well as advocating for “improving minimum wages at the local, state and national level.”
The 2024 minimum hourly wage in Colorado was $14.42, or about $30,455 per year. That figure increased to $14.81 for non-tipped employees as of Jan. 1.
For the complete Region 9 report, visit www.region9edd.org.
garrett@pagosasun.com
