.. how does the real purchasing power in metros of interest compare to other metros? Use data and tools reviewed here to examine the purchasing power of the incomes in different metros and states … this section provides access to regional price parities (RPPs) estimates developed compare regions within the U.S. RPPs are regional price levels expressed as a percentage of the overall national price level for a given year. The price level is determined by the average prices paid by consumers for the mix of goods and services consumed in each region. See about these data. See example about using RPPs below in this section.
• Use the interactive table to view, rank, compare the RPPs
.. for all states and metropolitan statistical areas (MSAs).
• Use GIS tools described here to develop RPP thematic pattern maps.
.. add your own data & geography, select different HPI measures or criteria.
.. zoom to different geographic extents, label and modify colors as desired.
Patterns of Regional Price Parities by Metro: 2014
The following graphic shows patterns of 2014 all items Regional Price Parities by metro (MSAs). The color patterns/intervals are shown in the inset legend. In additional views (below this graphic) metros are labeled with the 2014 all items RPP. Click graphic for larger view. Expand browser to full window for best quality view. Use the GIS tools described here to develop thematic pattern maps for a range of data and criteria.
.. view developed using the CV XE GIS software.
.. click map for larger view and details.
Using the RPP — Illustrative Examples
1. Comparing real purchasing power:
— Houston, TX metro compared to Waco, TX metro.
The the all items RPP for the Houston metro in 2014 was 100.3 while the all items RPP for the Waco, TX metro in 2014 was 91.5. (from RPP table). On average, prices are 0.3 percent higher and 8.5 percent lower than the U.S. average for the Houston metro and the Waco metro, respectively. The per capita personal income (PCPI) for the Houston metro in 2014 was $54,820 and the per capita personal income for the Waco metro was $35,340 (get from the table at http://proximityone.com/reis.htm). The RPP-adjusted PCPI values are $53,223 ($54,820/1.03) and $38,622 ($35,340/0.915), respectively. The gap between the purchasing power of the two metro PCPIs is reduced when adjusted by their respective RPPs.
2. Comparing real purchasing power:
— Washington, DC metro compared to Columbia, MO metro.
• Washington, DC metro 2014 all items RPP: is 119.4 (from RPP table); 2014 PCPI: $62,975 (from this table)
• Columbia, MO metro 2014 all items RPP: 93.0 (from RPP table); 2014 PCPI: $41,418 (from this table)
• The RPP-adjusted PCPI values are $52,742 ($62,975/1.194) and $44,535 ($41,418/0.93), respectively.
Using the RPP Interactive Table
Use the interactive table to examine the RPP by state and metro. The following graphic illustrates use of the table to show the 10 metros having the highest 2014 all items RPP. Click graphic for larger view. Examine metros and states of interest with more detail using tools below the table.
Join me in a Data Analytics Lab session to discuss more details about accessing and using wide-ranging demographic-economic data and data analytics. Learn more about using these data for areas and applications of interest.
About the Author
— Warren Glimpse is former senior Census Bureau statistician responsible for innovative data access and use operations. He is also the former associate director of the U.S. Office of Federal Statistical Policy and Standards for data access and use. He has more than 20 years of experience in the private sector developing data resources and tools for integration and analysis of geographic, demographic, economic and business data. Contact Warren. Join Warren on LinkedIn.