Editor’s Note: This story originally appeared on Porch.
Worries about inflation have been the biggest economic story of recent months. Month-over-month and year-over-year price increases have been at historic highs through much of 2021 and into 2022, with categories like energy and vehicles seeing increases of more than 40% since the beginning of 2021.
A number of factors explain the recent nationwide trends in price increases. Strong fiscal stimulus from the federal government during the pandemic and rapid recovery in many sectors have brought more money into the U.S. economy, while a tight labor market has led to wage increases for many workers.
With more money to spend, consumer demand has increased, but ongoing issues with global supply chains have made many physical goods scarce. The result has been price increases in nearly every category, which puts pressure on households’ finances.
One common measure of inflation is the Consumer Price Index, calculated by the U.S. Bureau of Labor Statistics. The CPI measures prices paid for a set of typical consumer expenses, including food, energy, transportation, apparel, shelter, and more. The year-over-year percentage change in the CPI has topped 5% in every month since June 2021 and reached 7.5% in January of 2022.
The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Regional Price Parities (RPP) dataset, which tracks relative cost-of-living differences across geographies.
To determine the locations where Americans’ incomes go the furthest, researchers at Porch looked at the overall cost of living compared with the national average, taking into account consumer goods, services, and housing. In the event of a tie, the location with the larger per capita personal income was ranked higher.
Here are the metropolitan areas where your dollar goes the furthest.
15. Raleigh-Cary, NC
- Overall cost of living (compared with average): -4.3%
- Cost of housing (compared with average): -4.8%
- Cost of goods (compared with average): -4.3%
- Cost of utilities (compared with average): +1.1%
- Per capita personal income: $60,884
14. Richmond, VA
- Overall cost of living (compared with average): -4.6%
- Cost of housing (compared with average): -5.0%
- Cost of goods (compared with average): -4.7%
- Cost of utilities (compared with average): +1.2%
- Per capita personal income: $61,148
13. Grand Rapids-Kentwood, MI
- Overall cost of living (compared with average): -5.3%
- Cost of housing (compared with average): -11.9%
- Cost of goods (compared with average): -6.2%
- Cost of utilities (compared with average): -2.3%
- Per capita personal income: $54,037
12. Indianapolis-Carmel-Anderson, IN
- Overall cost of living (compared with average): -5.3%
- Cost of housing (compared with average): -13.5%
- Cost of goods (compared with average): -5.6%
- Cost of utilities (compared with average): +7.2%
- Per capita personal income: $60,431
11. Kansas City, MO-KS
- Overall cost of living (compared with average): -5.3%
- Cost of housing (compared with average): -15.0%
- Cost of goods (compared with average): -4.5%
- Cost of utilities (compared with average): +10.3%
- Per capita personal income: $58,057
10. Charlotte-Concord-Gastonia, NC-SC
- Overall cost of living (compared with average): -5.4%
- Cost of housing (compared with average): -11.3%
- Cost of goods (compared with average): -4.3%
- Cost of utilities (compared with average): +1.7%
- Per capita personal income: $56,682
9. Columbus, OH
- Overall cost of living (compared with average): -5.8%
- Cost of housing (compared with average): -14.6%
- Cost of goods (compared with average): -5.9%
- Cost of utilities (compared with average): -2.7%
- Per capita personal income: $56,252
8. Tucson, AZ
- Overall cost of living (compared with average): -6.2%
- Cost of housing (compared with average): -14.6%
- Cost of goods (compared with average): -3.4%
- Cost of utilities (compared with average): +4.7%
- Per capita personal income: $48,373
7. Oklahoma City, OK
- Overall cost of living (compared with average): -6.2%
- Cost of housing (compared with average): -27.1%
- Cost of goods (compared with average): -3.9%
- Cost of utilities (compared with average): +10.9%
- Per capita personal income: $52,688
6. Cincinnati, OH-KY-IN
- Overall cost of living (compared with average): -6.5%
- Cost of housing (compared with average): -20.0%
- Cost of goods (compared with average): -5.9%
- Cost of utilities (compared with average): -1.3%
- Per capita personal income: $59,607
5. Cleveland-Elyria, OH
- Overall cost of living (compared with average): -7.0%
- Cost of housing (compared with average): -20.5%
- Cost of goods (compared with average): -5.9%
- Cost of utilities (compared with average): -2.6%
- Per capita personal income: $58,846
4. Tulsa, OK
- Overall cost of living (compared with average): -7.1%
- Cost of housing (compared with average): -30.0%
- Cost of goods (compared with average): -3.9%
- Cost of utilities (compared with average): +11.0%
- Per capita personal income: $58,071
3. Memphis, TN-MS-AR
- Overall cost of living (compared with average): -7.3%
- Cost of housing (compared with average): -23.2%
- Cost of goods (compared with average): -4.3%
- Cost of utilities (compared with average): +5.2%
- Per capita personal income: $51,155
2. Birmingham-Hoover, AL
- Overall cost of living (compared with average): -7.4%
- Cost of housing (compared with average): -28.5%
- Cost of goods (compared with average): -4.5%
- Cost of utilities (compared with average): +20.3%
- Per capita personal income: $55,074
1. Louisville/Jefferson County, KY-IN
- Overall cost of living (compared with average): -8.1%
- Cost of housing (compared with average): -29.2%
- Cost of goods (compared with average): -4.4%
- Cost of utilities (compared with average): +4.5%
- Per capita personal income: $55,676
Methodology
The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Regional Price Parities (RPP)dataset, which tracks relative cost-of-living differences across geographies.
To determine the locations where Americans’ dollar goes the furthest, researchers looked at the “All Items RPP,” which covers all consumer goods and services including housing.
In the event of a tie, the location with the larger per capita personal income was ranked higher. To improve relevance, only locations with at least 100,000 residents were included.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.