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13-2471-SAN
Monday, December 23, 2013
Consumer units (households) in the Phoenix metropolitan area spent an average of $53,735 per year in 2011-2012, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Richard J. Holden noted that this figure was 6 percent above the $50,581 average expenditure level for a typical household in the United States. Although households in the Phoenix area spent more than the U.S. average, they allocated their dollars similarly among most of the largest expenditure categories, though differing significantly in health care and cash contributions. For example, expenditures for healthcare accounted for 5.8 percent of a typical household budget in the Phoenix area, significantly below the nationwide average of 6.8 percent. (See chart 1 and table 1.)
Housing in the Phoenix metropolitan area averaged $18,679 annually and was the largest expenditure category, accounting for 34.8 percent of a Phoenix area household's total budget. This share was not significantly different from the 33.3-percent national average. (See tables 1 and 2.) Overall, 8 of the 18 published metropolitan areas had expenditure shares for housing measurably above the U.S. average, while 3 had significantly lower-than-average shares. (See chart 2.) Among the 18 areas, housing shares ranged from 39.7 percent in New York to 31.7 percent in Detroit. (See table 3.)
The majority of total housing expenditures in Phoenix, 56.0 percent, went toward shelter, which includes mortgage interest, property taxes, repairs, and rent, among other items; nationwide, 58.5 percent of the housing budget was allocated for shelter. (See table A.) Utilities, fuels, and public services expenses accounted for 21.7 percent of the housing budget locally; nationally, it made up 21.9 percent. The rate of homeownership in Phoenix, at 62 percent, was less than the U.S. average of 65 percent.
Category | United States | Phoenix |
---|---|---|
Total Housing |
100.0 | 100.0 |
Shelter |
58.5 | 56.0 |
Utilities, fuels and public services |
21.9 | 21.7 |
Household operation |
6.8 | 7.2 |
Housekeeping supplies |
3.6 | 3.7 |
Household furnishings and equipment |
9.2 | 11.4 |
Note: Columns may not add to 100 due to rounding. |
At 15.9 percent of the total budget, transportation was the second-largest expenditure category in the Phoenix area, not significantly different from the national average of 17.1 percent. Among the 18 published areas nationwide, 8 had transportation shares that were below the national average; only one had a share that was significantly above the average. (See chart 3.)
Of the $8,548 in annual expenditures for transportation in Phoenix, 94.3 percent was spent buying and maintaining private vehicles; this compared to the national average of 93.9 percent. The average number of vehicles per household in Phoenix was 1.6, compared to the national average of 1.9. The remaining 5.7 percent of a Phoenix household’s transportation budget was spent on public transit–which includes fares for taxis, buses, trains, and planes–and was below the 6.1-percent average for the nation. (See table B.)
Category | United States | Phoenix |
---|---|---|
Total Transportation |
100.0 | 100.0 |
Vehicle purchases (net outlay) |
34.0 | 30.2 |
Gasoline and motor oil |
31.3 | 30.4 |
Other vehicle expenses |
28.6 | 33.6 |
Public transportation |
6.1 | 5.7 |
Note: Columns may not add to 100 due to rounding. |
The portion of the average Phoenix consumer unit’s budget spent on food, 13.0 percent, was not significantly different from the 12.9-percent U.S. average. Among the 18 metropolitan areas, 14 had food expenditure shares that were not measurably different from the nationwide average. In the four remaining areas, three had food shares significantly below the national average, while one was significantly above average.
Households in Phoenix spent $4,197, or 60.1 percent, of their food dollars on food prepared at home and the remaining 39.9 percent on food prepared away from home, such as restaurant meals, carry-out, board at school, and catered affairs. In comparison, the typical U.S. household spent 59.4 percent of its food budget on food prepared at home and 40.6 percent on food prepared away from home.
As noted, Phoenix is 1 of 18 metropolitan areas nationwide for which Consumer Expenditure Survey (CE) data are available. Metropolitan area CE data and that for the four geographic regions and the United States are available on our website at www.bls.gov/cex/tables.htm. Metropolitan area CE news releases are available at www.bls.gov/regions/subjects/consumer-spending.htm .
Additional informationData contained in this report are from the CE, which is collected on an ongoing basis by the U.S. Census Bureau for the BLS. The CE data were averaged over a two-year period, 2011 and 2012 and are available for the nation, the 4 geographic regions of the country, and 18 metropolitan areas. The metropolitan area discussed in this release is Phoenix, Arizona, which is comprised of Maricopa and Pinal Counties.
The survey consists of two components, a diary or recordkeeping survey, and an interview survey. The integrated data from the BLS Diary and Interview Surveys provide a complete accounting of consumer expenditures and income, which neither survey component alone is designed to do. Due to changes in the survey sample frame, metropolitan area data in this release are not directly comparable to those prior to 1996.
A consumer unit is defined as members of a household related by blood, marriage, adoption, or other legal arrangement; a single person living alone or sharing a household with others but who is financially independent; or two or more persons living together who share responsibility for at least 2 out of 3 major types of expenses – food, housing, and other expenses. The terms household or consumer unit are used interchangeably for convenience.
CE metropolitan area estimates are not comparative cost of living surveys, as neither the quantity nor the quality of goods and services has been held constant among areas. Differences may result from variations in demographic characteristics such as consumer unit size, age, preferences, income levels, etc. However, expenditure shares, or the percentage of a consumer unit’s budget spent on a particular category, can be used to compare spending patterns across areas. Sample sizes for the metropolitan areas are much smaller than for the nation, so the U.S. estimates and year-to-year changes are more reliable than those for the metropolitan areas. Users should also keep in mind that prices for many goods and services have changed since the survey was conducted.
Expenditure shares for housing and transportation that are above or below that for the nation after testing for significance at the 95-percent confidence interval are also identified in charts 2 and 3 for the 18 metropolitan areas surveyed.
A value that is statistically different from another does not necessarily mean that the difference has economic or practical significance. Statistical significance is concerned with our ability to make confident statements about a universe based on a sample. It is entirely possible that a large difference between two values is not significantly different statistically, while a small difference is, since both the size and heterogeneity of the sample affect the relative error of the data being tested.For additional technical and related information, see www.bls.gov/opub/hom/cex/home.htm
Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 800-877-8339.
Category | United States | Phoenix |
---|---|---|
Average annual expenditures |
$50,581
|
$53,735
|
Percent distribution: |
100.0
|
100.0
|
Food |
12.9
|
13.0
|
Alcoholic beverages |
0.9
|
1.1
|
Housing |
33.3
|
34.8
|
Apparel and services |
3.4
|
3.5
|
Transportation |
17.1
|
15.9
|
Healthcare |
6.8
|
5.8*
|
Entertainment |
5.1
|
7.5
|
Personal care products and services |
1.2
|
1.2
|
Reading |
0.2
|
0.3
|
Education |
2.2
|
0.8*
|
Tobacco products and smoking supplies |
0.7
|
0.8
|
Miscellaneous |
1.6
|
1.8
|
Cash contributions |
3.6
|
2.8*
|
Personal insurance and pensions |
10.9
|
10.9
|
*Statistically significant difference from the U.S. average at the 95-percent confidence level. |
Category | United States | Phoenix |
---|---|---|
Consumer unit characteristics: | ||
Income before taxes |
$64,649 | $63,167 |
Age of reference person |
49.9 | 48.1 |
Average number in consumer unit: | ||
Persons |
2.5 | 2.5 |
Children under 18 |
0.6 | .7 |
Persons 65 and over |
0.3 | .3 |
Earners |
1.3 | 1.2 |
Vehicles |
1.9 | 1.6 |
Percent homeowner |
65 | 62 |
Average annual expenditures: | ||
Average annual expenditures |
$50,581 | $53,735 |
Food |
6,529 | 6,985 |
Food at home |
3,880 | 4,197 |
Cereals and bakery products |
534 | 576 |
Meats, poultry, fish, and eggs |
843 | 812 |
Dairy products |
413 | 416 |
Fruits and vegetables |
723 | 723 |
Other food at home |
1,367 | 1,670 |
Food away from home |
2,649 | 2,788 |
Alcoholic beverages |
454 | 589 |
Housing |
16,846 | 18,679 |
Shelter |
9,858 | 10,460 |
Owned dwellings |
6,101 | 6,661 |
Rented dwellings |
3,109 | 3,098 |
Other lodging |
648 | 701 |
Utilities, fuels, and public services |
3,687 | 4,055 |
Household operations |
1,141 | 1,340 |
Housekeeping supplies |
612 | 699 |
Household furnishings and equipment |
1,547 | 2,125 |
Apparel and services |
1,738 | 1,868 |
Transportation |
8,649 | 8,548 |
Vehicle purchases (net outlay) |
2,942 | 2,582 |
Gasoline and motor oil |
2,706 | 2,600 |
Other vehicle expenses |
2,472 | 2,876 |
Public transportation |
529 | 490 |
Healthcare |
3,436 | 3,102 |
Entertainment |
2,589 | 4,045 |
Personal care products and services |
631 | 620 |
Reading |
112 | 142 |
Education |
1,130 | 409 |
Tobacco products and smoking supplies |
341 | 413 |
Miscellaneous |
802 | 980 |
Cash contributions |
1,818 | 1,482 |
Personal insurance and pensions |
5,508 | 5,871 |
Life and other personal insurance |
335 | 321 |
Pensions and Social Security |
5,173 | 5,550 |
Area | Housing | Transportation | Food |
---|---|---|---|
United States |
33.3
|
17.1
|
12.9
|
Atlanta |
34.7
|
16.9
|
11.7* |
Baltimore |
33.8
|
13.7* |
12.7
|
Boston |
31.8* | 14.8* |
13.2
|
Chicago |
34.9* | 15.0* |
12.3
|
Cleveland |
31.9
|
17.8
|
12.3
|
Dallas |
32.9
|
18.6
|
12.5
|
Detroit |
31.7* |
18.8
|
13.3
|
Houston |
31.9
|
20.3* |
12.5
|
Los Angeles |
37.7* | 16.0* | 13.6* |
Miami |
38.4* |
17.0
|
13.7
|
Minneapolis |
31.8* |
17.5
|
12.6
|
New York |
39.7* | 13.7* |
12.4
|
Philadelphia |
37.9* | 14.4* |
12.7
|
Phoenix |
34.8
|
15.9
|
13.0
|
San Diego |
38.5* |
15.6
|
12.0
|
San Francisco |
35.2* | 14.2* | 11.5* |
Seattle |
34.1
|
15.7
|
12.8
|
Washington |
35.3* | 15.0* | 11.6* |
* Statistically significant difference from the U.S. average at the 95-percent confidence level. |
Last Modified Date: Monday, December 23, 2013