List of U.S. cities by adjusted per capita personal income

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List of U.S. cities by adjusted per capita personal income estimates the per capita personal income (PCPI) of residents of United States' Metropolitan statistical areas (MSA). A MSA is defined as a central city or cities and their surrounding area of influence. The PCPI is adjusted by differences in the cost of living, called "regional price parities" by the Bureau of Economic Analysis. The effect of adjusting the per capita personal income by the cost of living is to narrow the difference in the standard of living between most high-income cities and most low-income cities.

The BEA defines regional price parities as an estimate of "the differences in price levels across states and metropolitan areas for a given year and are expressed as a percentage of the overall national price level." [1] The BEA defines personal income as follows:

Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses. Personal income is estimated before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes). [2]

Per Capita Personal Income (PCPI) is a more inclusive estimate of the average standard of living of residents in the U.S. than measures of per capita income. PCPI "includes wages, benefits, proprietor income, dividends, interest, rent, and transfer payments" such as Social Security, veteran's benefits, farm subsidies, welfare, and food stamps. [3]

The difference in estimates of per capita income and per capita personal income is large. In 2019, the U.S. Census Bureau calculated a per capita income of the United States as 34,103 dollars. [4] The U.S. Bureau of Economic Analysis calculated the PCPI as 56,490 dollars. [5]

A more valid accounting of the differences in the standard of living of residents in different citizens requires recognition that prices vary from state to state and city to city. In general, a dollar has more purchasing power in the poorer cities than it does in the richer cities. The difference in housing costs from city to city is especially important. The Bureau of Economic Analysis has calculated that the regional price parity in 2019 of the 50 largest MSAs ranges from 88.3 in Birmingham, Alabama (which has the lowest cost of living of the 50 most populous MSAs) to 126.7 in San Jose, California (the highest cost of living of the 50 most populous MSAs). An income of $0.88 in Birmingham equals an income of $1.27 in San Jose with the U.S as a whole having an average PCPI of $1.00. To put it another way, the purchasing power of a dollar compared to the U.S. average is $1.13 in Birmingham and $0.79 in San Jose. The net impact of accounting for differences in the purchasing power of a dollar in different MSAs is to narrow the gap in the standard of living between rich and poor cities. [6]

The statistical analysis is complicated by the various definitions of what constitutes a "city." There are three commonly used definitions:

The population and per capita personal income estimates of metropolitan statistical areas are used in the following table.

Standard Metropolitan statistical areas by PCPI, adjusted by regional price parity

50 largest metropolitan areas Per Capita Personal Income (PCPI) (2019) [7] Rank in PCPI before adjustmentPurchasing power of $1.00 (2019) [8] PCPI after adjustments for purchasing power of dollarRank in PCPI after adjustment
1. New York City-Newark-Jersey City, NY-NJ-PA MSA $79,8444$0.80$63,8757
2. Los Angeles-Long Beach-Anaheim, CA MSA $66,6848$0.84$56,01534
3. Chicago-Naperville-Elgin, IL-IN-WI MSA $63,50014$0.97$61,59518
4. Dallas-Fort Worth-Arlington, TX MSA $58,72522$0.99$58,13827
5. Houston-The Woodlands-Sugar Land, TX MSA $58,89020$0.98$57,71228
6. Washington-Arlington-Alexandria, DC-VA-MD-WV MSA $74,3856$0.85$63,2279
7. Miami-Fort Lauderdale-West Palm Beach, FL MSA $60,96616$0.90$54,86939
8. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA $66,5969$0.95$63,22610
9. Atlanta-Sandy Springs-Alpharetta, GA MSA $54,55732$1.02$55,64836
10. Phoenix-Mesa-Chandler, AZ MSA $48,06547$1.01$48,54648
11. Boston-Worcester-Providence, MA-RI-NH-CT CSA $81,4983$0.87$70,9033
12. San Francisco-Oakland-Berkeley, CA MSA $104,2912$0.74$77,1752
13. Riverside-San Bernardino-Ontario, CA MSA $42,24250$0.93$39,28550
14. Detroit–Warren–Dearborn, MI MSA $54,17235$1.04$56,33932
15. Seattle-Tacoma-Bellevue, WA MSA $78,0735$0.87$67,9244
16. Minneapolis-St. Paul-Bloomington, MN-WI MSA $64,22511$0.97$62,29813
17. San Diego-Chula Vista-Carlsbad, CA MSA $63,72613$0.85$54,16741
18. Tampa-St. Petersburg-Clearwater, FL MSA $48, 90843$1.01$49,39747
19 Denver-Aurora-Lakewood, CO MSA $67,2367$0.96$64,5475
20. St. Louis, MO-IL MSA $56,29327$1.11$63,18511
21. Baltimore-Columbia-Towson, MD MSA $63,98812$0.95$60,78921
22. Charlotte-Concord-Gastonia, NC-SC MSA $53,91643$1.06$57,15130
23. Orlando-Kissimmee-Sanford, FL MSA $45,15649$1.01$45,60849
24. San Antonio-New Braunfels, TX MSA $48,69446$1.07$52,10645
25. Portland-Vancouver-Hillsboro, OR-WA MSA $59,92119$0.95$56,92531
26. Sacramento-Roseville-Folsom, CA MSA $58,84321$0.95$55,90135
27. Pittsburgh-New Castle-Weirton, PA-OH-WV CSA $60,22718$1.01$60,82920
28. Las Vegas-Henderson-Paradise, NV MSA $48,80645$1.03$50,27046
29. Austin-Round Rock-Georgetown, TX MSA $61,97715$1.01$62,59712
30. Cincinnati, OH-KY-IN MSA $56,03329$1.10$61,63616
31. Kansas City, MO-KS MSA $55,00931$1.08$59,40624
32. Columbus, OH MSA $52,47740$1.09$57,20029
33. Indianapolis-Carmel-Anderson, IN MSA $56,36026$1.10$61,96615
34. Cleveland-Elyria, OH MSA $55,45130$1.11$61, 55117
35. San Jose-Sunnyvale-Santa Clara, CA MSA $114,0801$0.79$90,1231
36. Nashville-Davidson–Murfreesboro–Franklin, TN MSA $60,68017$1.06$64,3216
37. Virginia Beach-Norfolk-Newport News, VA-NC MSA $52,01137$1.04$54,09142
38. Providence-Warwick, RI-MA MSA $56,13828$1.00$56,13833
39. Milwaukee-Waukesha, WI MSA $58,45724$1.06$62,06014
40. Jacksonville, FL MSA $51,42136$1.05$53,99243
41. Oklahoma City, OK MSA $48,86044$1.11$54,23540
42. Raleigh-Cary, NC MSA $57,85125$1.04$60,16523
43. Memphis, TN-MS-AR MSA $47,98548$1.12$53,74344
44. Richmond, VA MSA $58,62823$1.04$60,97319
45. New Orleans-Metairie, LA MSA $54,46333$1.07$58,27526
46. Louisville/Jefferson County, KY-IN MSA $52,13438$1.12$58,39025
47. Salt Lake City, UT MSA $54,45034$1.01$54,99538
48. Hartford-East Hartford-Middletown, CT MSA $65,15210$0.98$63,8498
49. Buffalo-Niagara Falls, NY MSA $52,33139$1.06$55,47137
50. Birmingham-Hoover, AL MSA $53,37441$1.13$60,31322
United States $56,490$1.00$56,490

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<span class="mw-page-title-main">Per capita income</span> Average income of an economy

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<span class="mw-page-title-main">Cost of living</span> Cost to maintain a standard of living

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References

  1. ↑ "Regional Price Parities by State and Metro Area". Bureau of Economic Analysis. Retrieved 25 January 2021.
  2. ↑ "Personal Income by County and Metropolitan Area, 2019" (PDF). Bureau of Economic Analysis. Retrieved 24 January 2021.
  3. ↑ "What is the difference between GDP and personal Income?". Montana.gov: Official State Website. Retrieved 24 January 2021.
  4. ↑ "Quick Facts: United States Census Bureau". United States Census Bureau. Retrieved 24 January 2021.
  5. ↑ "Press Release: Real Personal Income by State and Metro Area in 2019" (PDF). Bureau of Economic Analysis. Retrieved 24 January 2021.
  6. ↑ Sauter, Michael B. (25 November 2020). "Arkansas, Mississippi are among the states where a dollar has the highest value". USA Today: Money. Retrieved 24 January 2021.
  7. ↑ Personal Income BEA.
  8. ↑ Press Release BEA.
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