You’ve heard of turning dollars into dimes, but how about turning $100 into $123.61? In the most recent study by the Tax Foundation, Purchasing Power: The Real Value of $100 by Metropolitan Area, 2024, Garrett Watson explains the differences in purchasing power across America’s metro areas. Where will your dollars go the farthest? Pine Bluff, Arkansas, where $100 will get you $123.61 worth of purchasing power. Watson writes:
If you’ve ordered a rideshare or gotten a haircut in a major US city, you’ve likely noticed that the price of these services is more expensive than in other parts of the country. The difference is due to price level variation throughout the United States.
The Bureau of Economic Analysis (BEA) released data detailing the disparities in spending power across metropolitan and nonmetropolitan areas of each state for calendar year 2022. Using the data, we can compare how much $100 buys across the country.
The differences can be large, and they have significant implications for the relative impact of economic and tax policies across the United States. One hundred dollars tends to buy the least in large cities in the Northeast, California, and the Pacific Northwest. On the other hand, $100 goes the furthest in rural areas in the Southeast and Midwest. Prices can vary significantly within states too—$100 in Colorado tends to buy $97.75 worth of goods on average, but in the Denver area, $100 can purchase about $93.11 worth of goods and services.
Take a look at the map and find your metro area (if you’re in a metro). How does it stack up?
The places where your dollar went the least distance were among the usual suspects: big California cities like San Francisco, San Jose, San Diego, LA, and others outside of California like Seattle, New York, and Boston.
Action Line: If you're considering a move to a part of America where your dollars go farther during retirement, start your search with Your Survival Guy's 2024 Super States. When you are ready, email me at ejsmith@yoursurvivalguy.com, and we'll talk about your retirement plan.
