When making decisions about your business, costs are important. Whether its taxes, labor, construction, or anything else, it all affects business.
The Roanoke Region boasts a low cost of living so your money goes further when you invest here. Low electric rates, competitive construction costs, and reasonable health care costs combine to make business affordable.
Moody’s Cost of Doing Business Index ranks the Roanoke market at 18 percent below the national average when it comes to operating a company here. The index takes labor, energy, tax costs, and rent into consideration.
Cost of Living
A low cost of living is important to individuals and businesses. It means lower bills and less money spent on an operating budget. Compared to other areas competing for your business, you cannot beat the Roanoke Region when it comes to affordability.
Compare costs for yourself with this cost of living analyzer.
Cost of Living Index: National
| Region | Cost of Living Index |
|---|---|
| New York (Manhattan) | 227.7 |
| Washington, D.C./Arlington, VA | 140.7 |
| National Average | 100 |
| Charlotte, NC | 97.9 |
| Richmond, VA | 96.9 |
| Chattanooga, TN | 92.8 |
| Roanoke Region | 92.1 |
Cost of Living Index: Market
| Region/Market | Cost of Living Index |
|---|---|
| Washington, D.C./Arlington, VA | 140.7 |
| Charlottesville, VA | 102.7 |
| Winchester | 99.3 |
| Richmond | 96.9 |
| Blacksburg-Christiansburg-Radford | 95.2 |
| Roanoke Region | 92.1 |
Industrial Electric Rates
The Roanoke Region is served by Appalachian Power, a unit of American Electric Power, and portions are served by Dominion power. The region maintains lower electric rates than comparable regions.
Monthly Bill at 75kW, 30,000 kWh/month
| Region | Company | Bill |
|---|---|---|
| National Average | $3,153 | |
| Columbia, SC | South Carolina Electric & Gas | $2,966 |
| Birmingham, AL | Alabama Power Company | $3,903 |
| Atlanta, GA | Georgia Power Company | $2,936 |
| Detroit, MI | DTE Electric Co. | $3,338 |
| Roanoke Region | Appalachian Power | $2,379 |
Construction Costs
For any relocation or expansion decision, the cost of construction is an important factor. Construction costs in the Roanoke Region are not only competitive, but considerably lower than the national average according to the 2021 RS Means Building Construction Cost Book. The Construction Cost Index investigates over 700 communities and measures the costs of building materials, labor, climate, and local building codes.
RS Means Construction Index
| Region | Value Index |
|---|---|
| Newark, NJ | 117.4 |
| Los Angeles, CA | 111.8 |
| Pittsburgh, PA | 101.7 |
| Rochester, NY | 101.1 |
| National Average | 100 |
| Cleveland, OH | 96.0 |
| Charleston, WV | 94.2 |
| Baltimore, MD | 94.0 |
| Richmond, VA | 88.8 |
| Roanoke Region | 87.0 |
Labor Costs
At 3.7%, Virginia has one of the lowest unionization rates in the country. (The Roanoke MSA has an estimated unionization rate of 4.3% for 2022 in the private sector. (Also, Virginia has very low workers’ compensation rates. At $.61 per $100 of coverage wages (2020), Virginia ranks seventh lowest nationally and is 41 percent lower than the U.S. average (Source: nasi.org, 2023) . Additionally, Roanoke Region wages are lower than the Virginia and the national averages because of the low cost of living.
Median Wage Estimates (Hourly Rate)
| Occupation | Roanoke | Virginia | United States |
|---|---|---|---|
| Business and Financial Operations | $30.43 | $39.29 | $36.95 |
| Health Care Support | $14.15 | $14.72 | $16.16 |
| Protective Service | $19.14 | $22.01 | $21.85 |
| Food Preparation, Serving | $12.83 | $13.72 | $13.30 |
| Personal Care & Service | $13.52 | $14.47 | $14.25 |
| Sales and Related | $14.41 | $16.84 | $16.96 |
| Office, Administrative, and Support | $18.13 | $19.15 | $19.67 |
| Construction and Extraction | $21.01 | $22.65 | $24.31 |
| Install, Maintenance, and Repair | $22.78 | $23.06 | $24.08 |
| Production | $18.21 | $19.85 | $19.19 |
| Transportation, Material Moving | $17.14 | $18.19 | $18.24 |
| Architecture and Engineering | $36.24 | $43.60 | $40.24 |
| Life, Physical, and Social Sciences | $30.69 | $38.27 | $35.74 |
| Management | $48.23 | $61.90 | $51.62 |