”Survey says” presents an exploration of various rankings and scorecards assessing different geographic locations. It is essential to note that these rankings should be viewed as a blend of creative interpretation and data.
Buzz: California is surpassed by only three places in the nation when it comes to expensive housing costs per person.
Source: My trusted spreadsheet analyzed one measure of the burden of housing costs – the annual analysis of personal consumption expenditures from the Bureau of Economic Analysis. The study examines per capita spending in all 50 states and the District of Columbia.
Topline
In 2022, Californians spent $11,262 per person on housing-related expenses and utility costs, which is 23% higher than the average American’s expenditure of $9,161.
If this seems low, take into consideration that the typical California household consists of nearly three residents. Additionally, it’s important to remember that many homeowners either have no mortgage or a home loan with a very low interest rate acquired during the peak of the pandemic.
Let’s examine the magnitude of California’s housing cost burden: It was surpassed by the District of Columbia at $14,959, Colorado at $11,466, and Massachusetts at $11,315.
By the way, the lowest housing expenditure in the United States was $6,436 in Mississippi.
Alternatively, we can analyze housing costs in terms of California’s consumer spending. The cost of shelter accounted for 19% of California’s per capita consumer spending (ranking eighth nationally), compared to the national average of 17%. Hawaiians spent the most on housing, with shelter costs comprising 20% of their total spending. Conversely, North Dakota had the lowest proportion, with shelter costs representing only 14%.
Details
Now let’s take a broader look at the overall situation.
In 2022, Californians spent $60,272 per person on all goods and services, ranking fifth nationally and 15% higher than the national average. The District of Columbia had the highest figure at $85,732, while Mississippi had the lowest at $39,678.
Now let’s examine other significant consumer expenses beyond housing.
Health: Californians spent $9,335 per person on health-related expenses, ranking eleventh nationally and 12% higher than the national average. The District of Columbia had the highest expenditure at $12,239, while Utah had the lowest at $6,213. Health expenses accounted for 15% of Californians’ per capita spending (ranking 35th nationally), compared to the national average of 16%. West Virginia had the highest proportion at 23%, while Utah had the lowest at 13%.
- ECONOMIC NEWS: Curious about the latest trends and potential concerns? CLICK HERE!
Food: Californians spent $4,534 per person on food, ranking thirteenth nationally and 8% higher than the national average. The District of Columbia had the highest expenditure at $7,217, while Oklahoma had the lowest at $3,198. Food expenses accounted for 8% of Californians’ per capita spending (ranking 42nd nationally), matching the national average. Mississippi had the highest proportion at 10%, while Minnesota had the lowest at 7%.
Gasoline/energy: Californians spent $1,442 per person on gasoline and energy, ranking thirty-seventh nationally and 6% below the national average. Iowa had the highest expenditure at $2,186, while Hawaii had the lowest at $814. Fuels accounted for 2% of Californians’ per capita spending (ranking 42nd nationally), compared to the national average of 3%. Iowa had the highest proportion at 5%, while Hawaii had the lowest at 1%.
Bottom line
Let’s consider the overall expenditure for every individual.
- REAL ESTATE NEWSLETTER: Receive our free ‘Home Stretch’ newsletter via email. SUBSCRIBE HERE!
California consumers collectively spent $2.35 trillion on goods and services in 2022, ranking first nationally and accounting for 13% of the $17.5 trillion in total expenditures nationwide.
More importantly, Californians’ total spending increased by $206 billion from 2021, representing the highest gain among all states (12th largest percentage increase). Nationwide, total spending among Americans rose by 9.2% in the same time period.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
