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News Release Information

23-2312-CHI
Friday, October 27, 2023

Contacts Technical information: Media contact:
  • (312) 353-1138

Consumer Expenditures in the Minneapolis Metropolitan Area — 2021–22

Households in the Minneapolis-St. Paul-Bloomington, MN-WI, metropolitan area spent an average of $82,883 per year in 2021–22, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Jason Palmer noted that this figure was significantly higher than the $70,052 average expenditure level for households in the United States. Minneapolis-area households allocated their dollars similarly to the nation in 5 of the 8 largest major components. Three of the largest components in the local area differed significantly from their respective U.S. averages. For example, the share of expenditures for personal insurance and pensions, which accounted for 15.2 percent of the average household’s budget in the Minneapolis area, was higher than the national average of 11.9 percent. (See chart 1 and table 1.)


Highlights of the Minneapolis area’s 2021–22 spending patterns:
  • Housing: This was the largest expenditure component for Minneapolis-area households and averaged $27,591. Housing accounted for 33.3 percent of the area’s household budget, not significantly different from the 33.5-percent U.S. average. Housing expenditure shares among the 22 metropolitan areas nationwide for which data were available ranged from 40.6 percent in San Francisco to 30.4 percent in Anchorage. (See table 2.)
  • Transportation: Minneapolis-area households spent 12.1 percent of their budget on transportation, significantly lower than the national average of 16.6 percent. Of the $10,018 in annual transportation expenditures in Minneapolis, 90.6 percent was spent buying and maintaining private vehicles; this compared to the national average of 94.3 percent.
  • Food: The portion of a Minneapolis household’s budget spent on food, 11.4 percent, was significantly lower than the 12.6-percent U.S. average. Minneapolis-area households spent $5,908, or 62.7 percent, of their food dollars on food at home and $3,507 (37.2 percent) on food away from home. In comparison, the average U.S. household spent 62.2 percent of its food budget on food at home and 37.8 percent on food away from home.
Additional Information

Data in this release are from the Consumer Expenditure Survey (CE), which the U.S. Census Bureau conducts for the U.S. Bureau of Labor Statistics. The data in this release were averaged over a 2-year period, 2021 and 2022.

A household in the CE survey is defined as a consumer unit which includes families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share expenses. The terms household or consumer unit are used interchangeably for convenience.

Differences in spending among metropolitan areas may reflect differences in the cost of living, but they also may reflect other causes. Spending differences may result from different consumer preferences or variations in demographic characteristics, such as household size, age, or income levels. However, expenditure shares, or the percentage of a household’s budget spent on a particular component, 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.

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. A large difference between two values may not be statistically significant, while a small difference could be significant; both the sample size and the variation among the values in the sample affect the relative error of the estimates.

For additional technical and related information, see www.bls.gov/opub/hom/cex/home.htm. Data for the nation, the four geographic regions of the United States, and 22 metropolitan areas nationwide are available at www.bls.gov/cex/tables.htm. Metropolitan definitions used in the survey are available at www.bls.gov/cex/ce_msa_201516.htm. Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area, which is comprised of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington, and Wright Counties in Minnesota and Pierce and St. Croix Counties in Wisconsin. Metropolitan area news releases for the Consumer Expenditure Survey are available at www.bls.gov/regions/subjects/consumer-spending.htm.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.

Table 1. Average annual expenditures, characteristics, and percent distributions, United States and Minneapolis-St. Paul metropolitan area, 2021–22
Category United
States
Minneapolis-St. Paul

Consumer unit characteristics:

Income before taxes

$90,724 $117,759

Age of reference person

52 48.9

Average number in consumer unit:

People

2.4 2.4

Children under 18

0.6 0.5

Adults 65 and over

0.4 0.3

Earners

1.3 1.4

Vehicles

1.9 2.1

Percent homeowner

65 73

Average annual expenditures

$70,052 $82,883*

Percent distribution

Total

100.0 100.0

Food

12.6 11.4*

Alcoholic beverages

0.9 1.3*

Housing

33.5 33.3

Apparel and services

2.6 2.2

Transportation

16.6 12.1*

Healthcare

8.1 8.1

Entertainment

5.0 5.6

Personal care products and services

1.2 1.3

Reading

0.2 0.3

Education

1.8 3.0

Tobacco products and smoking supplies

0.5 0.3*

Miscellaneous

1.4 2.5

Cash contributions

3.7 3.4

Personal insurance and pensions

11.9 15.2*

Note: An asterisk (*) represents a statistically significant difference from the U.S. average at the 95-percent confidence level.

Table 2. Percent share of average annual expenditures for housing, transportation, and food, United States and 22 metropolitan areas, 2021–22
Area Housing Transportation Food

United States

33.5 16.6 12.6

Anchorage

30.4* 16.6 14.7*

Atlanta

34.3 17.0 12.5

Baltimore

31.7 17.6 13.0

Boston

35.3* 13.0* 12.1

Chicago

36.6* 12.9* 12.6

Dallas-Fort Worth

36.1* 17.5 12.2

Denver

36.7* 15.4 11.7

Detroit

31.6 18.2 12.3

Honolulu

37.1* 13.5* 17.3*

Houston

33.6 18.5 9.3*

Los Angeles

36.7* 17.0 13.2

Miami

37.3* 18.4 12.3

Minneapolis-St. Paul

33.3 12.1* 11.4*

New York

37.6* 12.4* 12.8

Philadelphia

33.1 13.1* 12.2

Phoenix

34.6 16.4 11.6

San Diego

36.9* 14.6 12.1

San Francisco

40.6* 12.8* 12.9

Seattle

35.2 15.4 11.2*

St. Louis

31.3* 17.2 13.4

Tampa

35.0 17.7 11.9

Washington, DC

35.3* 12.9* 12.0

Note: An asterisk (*) represents a statistically significant difference from the U.S. average at the 95-percent confidence level.

 

Last Modified Date: Friday, October 27, 2023