Households in the Phoenix-Mesa, Ariz., metropolitan area spent an average of $51,269 per year in 2013–14, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Richard J. Holden noted that this figure was not significantly different from the $52,284 average expenditure level for households in the United States. Phoenix-area households allocated their dollars similarly among most of the eight major categories, with only two (personal insurance and pensions and cash contributions) differing significantly from the U.S. average. For example, Phoenix households spent 8.9 percent of their total budget on personal insurance and pensions, significantly lower than the U.S. average of 10.8 percent. (See chart 1 and table 1.)

 

• Housing: This was the largest expenditure category for Phoenix-area households and averaged $17,543. Housing accounted for 34.2 percent of the area’s household budget, not significantly different from the 33.4-percent U.S. average. (See table 1.) Overall, 8 of the 18 metropolitan areas nationwide for which data were available had expenditure shares for housing that were not significantly different than the U.S. average, while another 8 areas had significantly higher-than-average shares; only Cleveland (31.0 percent) and Detroit (30.2 percent) had significantly lower-than-average shares. Housing expenditures shares among the 18 areas nationwide ranged from 39.6 percent in New York to 30.2 percent in Detroit. (See table 2.)
• Transportation: Phoenix-area households spent 19.4 percent of their budget on transportation, not significantly different from the national average of 17.3 percent. Of the $9,930 in annual transportation expenditures in Phoenix, 96.6 percent was spent buying and maintaining private vehicles; this compared to the national average of 93.8 percent.
• Food: The portion of a Phoenix household’s budget spent on food, 13.9 percent, was not significantly different from the 12.8 percent U.S. average. Phoenix-area households spent $4,351, or 61.0 percent, of their food dollars on food prepared at home and $2,786 (39.0 percent) on food prepared away from home. In comparison, the average U.S. household spent 59.5 percent of its food budget on food prepared at home and 40.5 percent on food prepared away from home.
• Personal insurance and pensions: Phoenix-area households spent 8.9 percent of their annual budget on personal insurance and pensions, which was significantly below the national average of 10.8 percent.

Technical Note

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, 2013 and 2014.

A household in the CE survey is defined as a consumer unit which consists of members 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.

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 https://www.bls.gov/regions/ce_areadef.pdf. Data for the nation, the four geographic regions of the U.S., and 18 metropolitan areas nationwide are available at www.bls.gov/cex/tables.htm. Metropolitan definitions used in the survey are available at www.bls.gov/regions/ce_areadef.pdf . The metropolitan area discussed in this release is Phoenix-Mesa, Ariz., which comprises Maricopa and Pinal Counties in Arizona. 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 distribution, United States and Seattle metropolitan area, 2013-14

Category	United States	Phoenix
Consumer unit characteristics:
Income before taxes	$65,339	$57,111
Age of reference person	50.2	47.5
Average number in consumer unit:
Persons	2.5	2.6
Children under 18	0.6	0.8
Persons 65 and over	0.4	0.3
Earners	1.3	1.2
Vehicles	1.9	1.6
Percent homeowner	63	56
Average annual expenditures:	$52,284	$51,269
Percent distribution
Total	100.0	100.0
Food	12.8	13.9
Alcoholic beverages	0.9	1.1
Housing	33.4	35.0
Apparel and services	3.2	3.3
Transportation	17.3	19.4
Healthcare	7.5	7.0
Entertainment	5.0	5.5
Personal care products and services	1.2	1.4
Reading	0.2	0.1*
Education	2.3	1.7
Tobacco products and smoking supplies	0.6	0.4*
Miscellaneous	1.3	0.8*
Cash contributions	3.5	2.3*
Personal insurance and pensions	10.8	8.9*
Note:* 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 18 metropolitan areas, 2013-14

Area	Housing	Transportation	Food
United States	33.4	17.3	12.8
Atlanta	33.2	16.4	12.8
Baltimore	33.9	15.0	11.5
Boston	33.3	15.1*	11.7*
Chicago	35.1*	15.2*	12.7
Cleveland	31.0*	18.0	13.7
Dallas	33.1	18.3	12.7
Detroit	30.2*	19.2*	12.4
Houston	33.4	17.9	12.1
Los Angeles	38.7*	15.0*	13.1
Miami	39.4*	16.8	13.0
Minneapolis	32.4	17.9	11.3*
New York	39.6*	13.4*	11.6
Philadelphia	35.4*	16.4*	12.5
Phoenix	34.2	19.4	13.9
San Diego	37.6*	16.3	11.0*
San Francisco	37.3*	13.7*	11.9
Seattle	35.0	15.4*	12.3
Washington	35.8*	18.0	10.0*
Note:* Statistically significant difference from the U.S. average at the 95-percent confidence level.