Starting and growing a business can be tough work. There are dozens of decisions to make, but making those decisions depend on a lot of different factors. One such factor is location. Some areas of the country are better equipped to help business owners grow and expand.
If you want to start or expand your business, it makes sense to look at the states attracting workers due to high job growth. According to U.S. News, that’s Arizona, Nevada, Colorado, and Idaho.
But what else do these states offer? Is it just enough to have a rapidly growing job market, or should there be other considerations?
Each state, including Arizona, Nevada, Colorado, and Idaho, has a cost of living – what to expect as far as the cost of necessary expenses. It’s a good idea to understand the cost of living before making the jump to a new state.
Even looking into things like state-specific insurance requirements – like Colorado car insurance rates – will help make the decision and transition even easier.
Job Market Country-Wide
The effects of the COVID-19 pandemic are still being felt, especially when it comes to the economy and job growth. Once the pandemic set in, job growth was stagnant – or moving in the wrong direction altogether – for more than a year.
The good news is, however, that 2022 closed out with some positive news. According to the Bureau of Labor Statistics, employers in December 2022 added over 200,000 jobs. That kind of increase in the workforce is good, but not all job sectors or industries are adding jobs at this rate.
That also means some areas of the country are seeing the positive effects of a growing job market while others are not. It’s similar to knowing where to start an online business, and which platforms are best to use.
It’s a similar mindset when it comes to expanding a business in a different location. That’s why these four states are seeing the biggest gains.
Arizona
Arizona has been high on the list of job growth for years, but the interest in Arizona has grown even higher since the COVID-19 pandemic. Arizona is rapidly becoming the new hub for tech-based companies.
For decades, the place to grow and develop technology has been California. Arizona, however, offers everything California does but at a much lower cost. California is known for high taxes and the high cost of living.
Arizona offers a similar climate and a great location while costing less in taxes. That’s a winning combination for employers and their employees.
Cost of Living
The cost of living in any place is determined by the cost of different living expenses. No matter where you live, you’ll need housing and associated utilities, food, health care services, transportation, general goods and/or services. The combination of these factors equals the average cost of living for any given city or state.
The average cost of living in the United States is about $5,500 a month, or about $66,000 a year. That number is for a family of four, so the numbers will increase or decrease depending on the size of the family.
With that in mind, the cost of living in Arizona is about 7% higher than the national average. Most of the determining factors – housing and utilities, food, and goods and services – are all higher than the corresponding costs outlined in the national average. But healthcare and transportation costs in Arizona come in a little lower than the national average.
Of course, the cost of living can and does change from city to city within a state. Some areas are more expensive and others are less expensive. More details can be found with a little research into the specific city in Arizona.
Overall, Arizona is a promising city when it comes to job growth and business expansion, but it does cost more to cover general living expenses.
Nevada
Nevada is another great state to grow and expand your business. In fact, experts believe Nevada might be a veritable “unicorn” when it comes to the business environment.
Nevada is a pro-business, right-to-work state. This is great news for employers and employees alike. There are few taxes and a low-regulation system in place. This means businesses can see big financial gains while also being attractive to prospective employees.
Currently, Nevada is seeing a big increase in industries like retail, accommodations and food services, and real estate – including renting and leasing options.
Cost of Living
The cost of living is almost positive in Nevada’s cap. Overall, the cost of living in Nevada is on par with the national average. Of course, there are some areas of the state that are more expensive, but those areas of high cost are offset by areas of lower cost.
A few areas – health care, utilities, and goods like groceries – are just below the national average. Everything else, however, – including housing, auto insurance, and transportation – is well over the national average.
Colorado
People are often drawn to Colorado, and not just those looking for improvements or offerings in the business industry. Colorado has one big incentive – the outdoor lifestyle. This state is home to mountains and both national and state parks.
The mountain air is also a big plus. People are looking to reconnect with nature and experience the wide open spaces Colorado is known for.
When it comes to the job market, however, there are even more benefits. Colorado has seen an increase in tech and cannabis markets. Regardless of what industry you might be in, Colorado is a business-friendly state. It offers lower fees to create a business and lower taxes, too.
And, if you’re looking to start a business, consider these 5 tips on how to start a business in Colorado.
Cost of Living
It can be expensive to live in Colorado though. On average, the cost of living in Colorado is about 12% higher than the national average. Speaking in general terms, housing in Colorado is over 30% higher than the national average, but that largely depends on the area or city you choose to live in.
Goods and services can be higher than the national average, as well. Take food for example. Colorado residents are generally very healthy and pay close attention to their diets. This can translate into higher food expenses.
Idaho
Much like the three states before, Idaho is a great place to start and expand a business. Similar to Arizona, Nevada, and Colorado, Idaho has streamlined processes and low taxes. Both are big advantages for start-ups and growing businesses.
There are a few industries in Idaho seeing bigger gains. Industries like food processing, lumber products, chemicals, paper, and tourism are seeing big growth.
Cost of living
Idaho’s cost of living is one of the most affordable of the states on this list. On average, the total cost of living in Idaho is a little higher than the national average. Most categories – food, utilities, transportation, and general goods and services – are much lower than the national average.
Housing, on the other hand, is well above the national average. Averaging these factors together and the cost of living in Idaho is just below the national average. And comparing it to other states in the region, Idaho is very affordable.
If you’re looking for a change of scenery while also boosting your business or employment options, consider one of these four states. See just how much growth – and enjoyment – you get out of these states and their business-friendly climates.
Laura Gunn writes and researches for the car insurance comparison site, CarInsurance.org. She is constantly looking to move to a different state but only one that sees steady and consistent job growth.
