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News Release Information

19-1671-CHI
Friday, November 01, 2019

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

Consumer Expenditures for the Detroit Metropolitan Area: 2017–18

Households in the Detroit-Warren-Dearborn, MI, metropolitan area spent an average of $64,998 per year in 2017-18, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that this figure was not significantly different from the $60,580 average expenditure level for households in the United States. Detroit-area households allocated their dollars similarly to the nation in five of the eight major categories, with three differing significantly from their respective U.S. averages. For example, the share of expenditures for housing, which accounted for 30.1 percent of the average household’s budget in the Detroit area, was lower than the national average of 33.0 percent. (See chart 1 and table 1.)

Highlights of the Detroit-area’s 2017–18 spending patterns:
  • Housing: This was the largest expenditure category for Detroit-area households and averaged $19,587. As noted, housing accounted for 30.1 percent of the area’s household budget, significantly lower than the 33.0-percent U.S. average. (See table 1.) Among the 22  metropolitan areas nationwide for which data were available, Detroit was the only area to have a housing expenditure share that was significantly lower than the national average. Housing expenditure shares among the 22 published metropolitan areas ranged from 39.4 percent in San Francisco to 30.1 percent in Detroit. (See table 2.)

  • Transportation: Detroit-area households spent 19.3 percent of their budget on transportation, significantly higher than the national average of 16.0 percent. Of the $12,541 in annual transportation expenditures in Detroit, 93.2 percent was spent buying and maintaining private vehicles; this compared to the national average of 92.1 percent.

  • Food: The portion of a Detroit household’s budget spent on food, 12.3 percent, was not significantly different from the 12.9-percent U.S. average. Detroit-area households spent $4,429, or 55.4 percent, of their food dollars on food at home and $3,569 (44.6 percent) on food away from home. In comparison, the average U.S. household spent 56.4 percent of its food budget on food at home and 43.6 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, 2017 and 2018.

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 the Detroit-Warren-Dearborn, MI Metropolitan Statistical Area, which comprises Lapeer, Livingston, Macomb, Oakland, St. Clair, and Wayne Counties in Michigan. 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.
Table 1. Average annual expenditures, characteristics, and percent distributions, United States and Detroit metropolitan area, 2017–18
CategoryUnited
States
Detroit

Consumer unit characteristics:

Income before taxes

$76,118$80,089

Age of reference person

5152.5

Average number in consumer unit:

People

2.52.4

Children under 18

0.60.6

Adults 65 and over

0.40.4

Earners

1.31.3

Vehicles

1.91.9

Percent homeowner

6370

Average annual expenditures

$60,580$64,998

Percent distribution

Total

100.0100.0

Food

12.912.3

Alcoholic beverages

0.91.1

Housing

33.030.1*

Apparel and services

3.13.6

Transportation

16.019.3*

Healthcare

8.17.6

Entertainment

5.36.5

Personal care products and services

1.31.2

Reading

0.20.1

Education

2.41.8

Tobacco products and smoking supplies

0.60.8*

Miscellaneous

1.72.1

Cash contributions

3.12.4*

Personal insurance and pensions

11.611.1

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, 2017–18
AreaHousingTransportationFood

United States

33.016.012.9

Anchorage

31.515.712.6

Atlanta

32.816.311.5*

Baltimore

32.315.811.9

Boston

37.5*12.0*12.1

Chicago

35.3*13.2*13.3

Dallas-Fort Worth

36.7*16.811.1*

Denver

34.215.212.4

Detroit

30.1*19.3*12.3

Honolulu

38.0*10.9*18.1*

Houston

34.115.911.8*

Los Angeles

35.7*13.6*13.2

Miami

37.3*15.311.8

Minneapolis-St. Paul

33.612.9*11.6*

New York

39.0*12.0*12.3

Philadelphia

32.815.612.6

Phoenix

31.019.011.7

San Diego

35.9*14.313.3

San Francisco

39.4*11.3*12.6

Seattle

34.514.113.4

St. Louis

32.915.111.7

Tampa

35.515.314.3

Washington, D.C.

33.914.412.3

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

 

Last Modified Date: Friday, November 01, 2019