Households in the New York-Newark-Jersey City, NY-NJ-PA, metropolitan area spent an average of $73,806 per year in 2018–19, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli noted that this figure was significantly higher than the $62,395 average expenditure level for households in the United States. New York-area households allocated their dollars significantly different from the nation in six of the eight major components. For example, the share of expenditures for education, which accounted for 3.7 percent of the average household’s budget in the New York area, was significantly higher than the national average of 2.3 percent. (See chart 1 and table 1.)

  

• Housing: This was the largest expenditure category for New York-area households and averaged $28,040. Housing accounted for 38.0 percent of the area’s household budget, significantly higher than the 32.7-percent U.S. average. (See table 1.) Among the 22 metropolitan areas nationwide for which data were available, 11 areas, including New York, had a housing expenditure share that was significantly higher than the national average. Housing expenditures shares among the 22 published areas nationwide ranged from 38.0 percent in New York to 30.3 percent in Detroit. (See table 2.) 

• Food: The portion of a New York household’s budget spent on food, 13.3 percent, was similar to the 12.9-percent U.S. average. New York-area households spent $5,352, or 54.4 percent, of their food dollars on food at home and $4,491 (45.6 percent) on food away from home. In comparison, the average U.S. household spent 56.6 percent of its food budget on food at home and 43.4 percent on food away from home.

• Transportation: New York-area households spent 12.5 percent of their budget on transportation, significantly lower than the national average of 16.8 percent. Of the $9,255 in annual transportation expenditures in New York, 79.8 percent was spent buying, operating and maintaining private vehicles; this compared to the national average of 92.4 percent. New York-area households spent $1,874, or 20.2 percent, of their transportation budget on public and other transportation; nationally, the average was $799, or 7.6 percent, of a household’s transportation budget.

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, 2018 and 2019.

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 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.

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 U.S., 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. The metropolitan area discussed in this release is New York-Newark-Jersey City, NY-NJ-PA Metropolitan Statistical Area which comprises Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties in New Jersey; and Pike County in Pennsylvania. 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 sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 800-877-8339.