Yahoo Finance 10 Expensive US Locations Where $100 Is Worth the Least
Inflation, high costs of living and soaring rates have all put a dent in many Americans’ savings. And in some locations across the country, the toll on consumers’ finances is further aggravated by the fact that $100 is not worth as much as it could be in other cities.
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To see how far $100 will go in America’s most expensive places, GOBankingRates compiled data from the U.S. Bureau of Economic Affairs 2022 Regional Price Parities release.
Findings show that eight out of the top 10 cities in which $100 is worth the least are in one state: California. The top 10 locations are Washington state and the tri-state area of New York-Pennsylvania-New Jersey.
“These figures are not surprising. It’s both a supply and demand story,” said Jason Sorens, American Institute for Economic Research senior fellow. “In terms of demand, Massachusetts, New Jersey, and California have some of the highest income metro areas in the U.S.’
In addition, Sorens said that these states also have some of the country’s strictest zoning regulations, making it difficult to build housing.
Here are the 10 U.S. locations where $100 is worth the least.
What Other Factors Are Driving High Costs?
Additional drivers contribute to the fact that $100 doesn’t stretch as far in some cities.
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“The main drivers are the costs of housing and childcare. These are the top costs in the country in these areas, said home equity expert Michael Micheletti, chief communications officer of Unlock Technologies.
In terms of housing, there are several factors, he said: if you bought a home recently, you’re faced with high mortgage costs. In addition, the rising costs of property taxes and home insurance in these areas are among the highest in the country, he added.
“Families may have increased pressures, too, with the rising costs of childcare in these areas,” added Micheletti. “If you have to navigate both housing and childcare costs, your dollar is simply not going to go as far.”
Finally, taxes can also play a significant role in the cost of living in these states, as these states tend to have higher state-level taxes, said Michael Collins, CFA, founder and CEO, WinCap Financial.
“Some examples of the types of taxes people will pay are, property tax, sales tax, and state level income tax,” he said.
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San Francisco-Oakland, CA ($82.11)
Median household income: $129,315
Typical home value: $1.27 million
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Pictured: San Francisco
San Jose-Sunnyvale-Santa Clara, CA ($84.74)
Median household income: $151,713
Typical home value: $1.76 million
Pictured: Sunnyvale, CA
Santa Cruz-Watsonville, CA ($85.30)
Median household income: $104,409
Typical home value: $1.21 million
Pictured: Santa Cruz, CA
San Diego-Chula Vista-Carlsbad, CA ($85.49)
Median household income: $96,974
Typical home value: $1.08 million
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Pictured: San Diego
Oxnard-Thousand Oaks-Ventura, CA ($85.61)
Median household income: $102,141
Typical home value: $905,351
Pictured: Thousand Oaks, CA
Santa Maria-Santa Barbara, CA ($86.06)
Median household income: $92,332
Typical home value: $1.05 million
Pictured: Santa Barbara, CA
Seattle-Tacoma-Bellevue, WA ($86.32)
Median household income: $107,206
Typical home value: $793,851
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Pictured: Seattle
Los Angeles-Long Beach-Anaheim, CA ($86.89)
Median household income: $89,105
Typical home value: $1.01 million
Pictured: Los Angeles
Salinas, CA ($86.94)
Median household income: $91,043
Typical home value: $854,830
New York-Newark, PA-Jersey City, NJ ($86.95)
Median household income: $93,610
Typical home value: $679,214
Pictured: New York
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This article originally appeared on GOBankingRates.com: 10 Expensive US Locations Where $100 Is Worth the Least
