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14-2110-CHI
Friday, November 21, 2014
Consumer units in the Minneapolis-St. Paul, Minn.-Wis., metropolitan area spent an average of $66,678 per year in 2012-2013, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that this figure was 30 percent higher than the $51,299 average expenditure level for a typical household in the United States. Although households in the Minneapolis area spent significantly more than the U.S. average, they allocated their dollars similarly among most of the eight major categories, with only one exception. The share of expenditures for food, which accounted for 11.3 percent of a typical household’s budget in the Minneapolis area, was significantly less than the nationwide average of 12.9 percent. (See chart 1 and table 1.)
Housing in the Minneapolis metropolitan area averaged $21,315 annually and was the largest expenditure category, accounting for 32 percent of a Minneapolis area household’s total budget. (See tables 1 and 2.) This share was not significantly different than the 33.2-percent national average. Overall, 8 of the 18 published metropolitan areas had expenditure shares for housing significantly above the U.S. average. Only one area, Detroit, had a share for housing that was significantly below the U.S. average. (See table 3 and chart 2.) Housing expenditures among the 18 areas ranged from 39.9 percent in Miami to 30 percent in Detroit. (See table 3.)
The majority of housing expenditures in Minneapolis went toward shelter, 55.9 percent, which includes mortgage interest, property taxes, repairs, and rent, among other items; nationwide, 58.6 percent of the housing budget was allocated for shelter. (See table A.) Utilities, fuels, and public services expenses accounted for 16.4 percent of the housing budget locally; nationally, it made up 21.7 percent. The rate of homeownership in Minneapolis was 71 percent, compared to the U.S. average of 64 percent. (See table 2.)
Category | United States | Minneapolis-St. Paul |
---|---|---|
Total housing | 100.0 | 100.0 |
Shelter | 58.6 | 55.9 |
Utilities, fuels, and public services | 21.7 | 16.4 |
Household operations | 6.8 | 7.4 |
Housekeeping supplies | 3.7 | 3.2 |
Household furnishings and equipment | 9.2 | 17.1 |
Note: Columns may not add to 100 due to rounding. |
At 18.3 percent of the total budget, transportation was the second-largest expenditure category in the Minneapolis area; this was not significantly different from the national average of 17.5 percent. Among the 18 published metropolitan areas nationwide, 6 had below-average transportation shares. Two areas, Houston and Detroit, had shares that were significantly above the national average at 21.0 and 19.7 percent, respectively. (See chart 3.)
Of the $12,222 in annual expenditures for transportation in Minneapolis, 94.1 percent was spent buying and maintaining private vehicles, compared to the national average of 94 percent. The remaining 5.9 percent of a Minneapolis household’s transportation budget was spent on public transit, which includes fares for taxis, buses, trains, and planes. Nationally, 6.0 percent of transportation expenditures went to public transit. (See table B.) The average number of vehicles per household in Minneapolis was 2.4, above the national average of 1.9. (See table 2.)
Category | United States | Minneapolis-St. Paul |
---|---|---|
Transportation | 100.0 | 100.0 |
Vehicle purchases (net outlays) | 36.0 | 40.6 |
Gasoline and motor oil | 29.8 | 25.9 |
Other vehicle expenses | 28.2 | 27.6 |
Public transportation | 6.0 | 5.9 |
Note: Columns may not add to 100 due to rounding. |
As noted, the portion of a Minneapolis consumer unit’s budget spent on food, 11.3 percent, was significantly below the 12.9-percent U.S. average. Among the 18 metropolitan areas, 6 (including Minneapolis) had food expenditure shares that were significantly below the nationwide average. (See table 3.)
Households in Minneapolis spent $4,168 or 55.2 percent, of their food dollars on food prepared at home and the remaining 44.8 percent ($3,386) 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 59.8 percent of its food budget on food prepared at home and 40.2 percent on food prepared away from home.
As noted, Minneapolis-St. Paul 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 of the United States are available on our Web site at https://www.bls.gov/cex/tables.htm. Metropolitan area CE news releases are available at https://www.bls.gov/regions/subjects/consumer-spending.htm.
Additional Information
Data contained in this release are from the CE, which is conducted on an ongoing basis by the U.S. Census Bureau for the BLS. The CE data in this release were averaged over a two-year period, 2012 and 2013. CE data are available for the nation, the 4 geographic regions of the country, and 18 metropolitan areas. The metropolitan area discussed in this release is Minneapolis-St. Paul, Minn.-Wis., which is comprised of Anoka, Benton, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright Counties in Minnesota; and Pierce and St. Croix Counties in Wisconsin.
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 | Minneapolis-St. Paul |
---|---|---|
Average annual expenditures | $51,299 | $66,678* |
Percent distribution: | 100.0 | 100.0 |
Food | 12.9 | 11.3* |
Alcoholic beverages | 0.9 | 1.0 |
Housing | 33.2 | 32.0 |
Apparel and services | 3.3 | 2.8 |
Transportation | 17.5 | 18.3 |
Health care | 7.0 | 7.1 |
Entertainment | 5.0 | 5.6 |
Personal care products and services | 1.2 | 1.3 |
Reading | 0.2 | 0.3* |
Education | 2.3 | 2.3 |
Tobacco products and smoking supplies | 0.6 | 0.5* |
Miscellaneous | 1.4 | 1.7 |
Cash contributions | 3.7 | 4.6 |
Personal insurance and pensions | 10.8 | 11.2 |
*Statistically significant difference from the U.S. average at the 95-percent confidence level. |
Category | United States | Minneapolis-St. Paul |
---|---|---|
Consumer unit characteristics: | ||
Income before taxes | $64,686 | $90,093 |
Age of reference person | 50.1 | 47.4 |
Average number in consumer unit: | ||
Persons | 2.5 | 2.5 |
Children under 18 | 0.6 | 0.6 |
Persons 65 and over | 0.3 | 0.2 |
Earners | 1.3 | 1.6 |
Vehicles | 1.9 | 2.4 |
Percent homeowners | 64 | 71 |
Average annual expenditures | $51,299 | $66,678 |
Food | 6,600 | 7,554 |
Food at home | 3,949 | 4,168 |
Cereals and bakery products | 541 | 582 |
Meats, poultry, fish, and eggs | 854 | 817 |
Dairy products | 416 | 458 |
Fruits and vegetables | 741 | 704 |
Other food at home | 1,397 | 1,608 |
Food away from home | 2,651 | 3,386 |
Alcoholic beverages | 448 | 674 |
Housing | 17,030 | 21,315 |
Shelter | 9,986 | 11,918 |
Owned dwellings | 6,082 | 7,903 |
Rented dwellings | 3,255 | 2,750 |
Other lodging | 649 | 1,265 |
Utilities, fuels, and public services | 3,693 | 3,491 |
Household operations | 1,152 | 1,587 |
Housekeeping supplies | 627 | 684 |
Household furnishings and equipment | 1,571 | 3,635 |
Apparel and services | 1,677 | 1,861 |
Transportation | 9,001 | 12,222 |
Vehicle purchases (net outlay) | 3,241 | 4,961 |
Gasoline and motor oil | 2,683 | 3,162 |
Other vehicle expenses | 2,537 | 3,372 |
Public transportation | 540 | 727 |
Healthcare | 3,594 | 4,754 |
Entertainment | 2,553 | 3,728 |
Personal care products and services | 618 | 847 |
Reading | 106 | 205 |
Education | 1,172 | 1,536 |
Tobacco products and smoking supplies | 331 | 324 |
Miscellaneous | 736 | 1,103 |
Cash contributions | 1,873 | 3,059 |
Personal insurance and pensions | 5,559 | 7,496 |
Life and other personal insurance | 336 | 330 |
Pensions and Social Security | 5,224 | 7,167 |
Area | Housing | Transportation | Food |
---|---|---|---|
United States | 33.2 | 17.5 | 12.9 |
Atlanta | 33.4 | 17.1 | 12.6 |
Baltimore | 32.5 | 15.5 | 11.0* |
Boston | 32.6 | 15.6* | 13.3 |
Chicago | 35.4* | 15.6* | 12.7 |
Cleveland | 31.6 | 18.2 | 12.8 |
Dallas | 33.5 | 17.9 | 12.6 |
Detroit | 30.0* | 19.7* | 13.5 |
Houston | 33.1 | 21.0* | 12.0 |
Los Angeles | 38.2* | 15.4* | 13.4 |
Miami | 39.9* | 16.2 | 14.0 |
Minneapolis | 32.0 | 18.3 | 11.3* |
New York | 39.8* | 13.5* | 11.9* |
Philadelphia | 35.4* | 15.4* | 13.7 |
Phoenix | 34.8 | 18.9 | 13.6 |
San Diego | 38.2* | 15.8 | 11.5* |
San Francisco | 35.8* | 13.7* | 11.9* |
Seattle | 33.4 | 15.6 | 13.0 |
Washington | 35.3 | 16.7 | 10.9* |
*Statistically significant difference from the U.S. average at the 95-percent confidence level. |
Last Modified Date: Friday, November 21, 2014