The cost of living in the United States is rising at its fastest pace in 10 years.
As the cost of living in the United States increases, it’s important to note the pace of the increase. Expected inflation is not unusual, and economists predict it. That’s partially why a house or car costs more today than in 1950.
However, the pace at which the cost of living in America is increasing is alarmingly quick. In fact, it’s the fastest pace in the last 10 years.
“Rising rents remain the source of inflation. This is driven by shortages of housing in desirable markets,” wrote Dean Baker, senior economist at the Center for Economic and Policy Research. “Unfortunately, the downward trend in housing construction means that these shortages are unlikely to be addressed on the supply side in the foreseeable future.”
As housing drives the costs, the reason of supply and demand is one strong factor. Construction of new homes has been slowing down. As a result, supply of available housing is at an all-time low according to Realtors.
At the end of the fourth quarter, there were 1.48 million existing homes available for sale, which was 10.3% below the 1.65 million homes for sale at the end of the fourth quarter in 2016. – BuilderOnline
At the same time, wages have been slow to pick up the pace to match the increased cost of living.
It’s All About Location
The gap between cost of living and wages has been well-established. However, it is not universal. There still are some states and cities where that gap isn’t as drastic as others. These are mostly southern and mid-western states and smaller sized cities.
With City vs City, you can compare your current cost of living against one of those cities with ease. Simply input your data, select the zip codes you’d like to compare, and see how your cost of living would change if you were to move.
Check out the video below for a quick demonstration on how the cost of living in the United States varies from city to city. With our app, you can find out which city can offer you the best cost of living situation.
Ready to start comparing? Download City vs City today and start comparing.