Inflation has been top of our minds this past year. From 2021 to 2022, prices have risen across the country. Not only rent prices, but groceries and energy too.
Inflation across Q1 2022 rose 7.97 percent. In Q3, it was up to 8.33 percent. These yearly increases were reflected across the U.S. and in changing prices in cities. In Rent.’s analysis below, we’ll examine cities that saw a change in prices above 4.52 percent, a benchmark to judge a city’s rise in the cost of living based on the percent change in inflation between Q1 and Q3.
Let’s look at how cost of living prices increased from the first quarter to the third quarter in certain cities across different regions of the country.
South
Clocking in at 2.2 million residents, Houston saw an overall increase of 9.5 percent in the cost of living.
While overall the grocery store showed a decrease of 0.26 percent, individual items did see a drastic increase. Basic staples like ground beef, eggs and potatoes climbed 17, 54 and 39 percent respectively. There was small price relief in items like milk, lettuce, bread and orange juice.
Energy prices in Houston climbed by 4.1 percent. The median apartment rent across all units in the Houston metro area is $1,732 per month. Between Q1 and Q3, there was 6.8 percent change in rents.
In Florida, Jacksonville saw an increase in the cost of living of 8.1 percent between Q1 and Q3 of this year. The median rent in the Jacksonville metro are is $1,628 per month currently, but the area saw 36 percent change in rent levels from earlier this year as prices climbed quickly.
The metro area did see some relief in overall energy costs, but gasoline increased 10.8 percent. At the grocery store, residents of Jacksonville also saw only moderate growth with a 1.74 percent change in prices. Basic grocery items like ground beef, orange juice and coffee were down, but other items like tuna, eggs and milk were up significantly at 39, 21 and 61 percent respectively.
The Charlotte metro area saw a striking 11 percent rise in the cost of living . The city currently has a median rent of $1,920 per month and saw a 5.2 percent rise in apartment prices during the same period.
At the grocery store, there wasn’t much relief either. Groceries increased 5.7 percent with significant increases for potatoes, a dozen eggs, sugar and margarine. Gasoline also went up 28 percent while overall energy costs remained stable.
Northeast
In Pittsburgh, energy costs rose around 6.2 percent, a similar increase to the 6.4 percent overall cost of living in the metro area . Most utilities kept pace with the change in inflation. Similarly to other metro areas, groceries are double the change in inflation at 8.6 percent with gasoline reaching a 34 percent increase. Milk, eggs and bananas are the highest ticket items at the store, with more than 25 percent price increases.
Buffalo‘s cost of living went up 7.3 percent, outpacing inflation growth between Q1 and Q3. For residents, rent stayed under the change in inflation at 2.9 percent with a median rent of $1,550 per month. Energy went up 7.6 percent along with gasoline at 36 percent. At the store, residents saw an overall increase in groceries of 8.8 percent. Most groceries items went up at least 10 percent during this time period, with eggs and bread going up 55 and 34.6 percent respectively.
The overall cost of living in Providence went down slightly, but certain items went up still. The median rent is $2,473 per month with rent prices rising 2 percent between Q1 and Q3. Energy costs increased in the single digits at 4.3 percent but gasoline went up 36 percent, far outpacing the change in inflation.
Residents’ wallets experienced sticker shock at the grocery store as well. While grocery costs went down slightly overall, certain items remained more expensive than ever. Milk and eggs went up 18.3 and 42.8 percent respectively while coffee went up a staggering 65.1 percent.
Midwest
In Ohio, Columbus residents didn’t see much change in their cost of living beyond the change in inflation from Q1 and Q3 — holding at 5 percent. The median rent is $1,502 per month for all units, which saw an increase of 11.4 percent during the same time period.
As with the rest of the country, Columbus saw higher prices at the grocery store, which have outpaced the change in inflation at 7.4 percent. Basic staple items like sugar grew by around 21 percent, while residents saw a 44 percent increase on a dozen eggs.
Not too far over in Indianapolis, the cost of living rose to 6.5 percent. Rents saw an increase of 9.3 percent, with a median of $1,476. Energy costs also rapidly rose by 12.9 percent along with gasoline, 33 percent. Groceries rose similarly to Columbus at 8.3 percent. Potato, coffee and eggs were the items that rose in price the most.
In Detroit, the cost of living increased by 9.2 percent — which can be seen in apartment rent prices. At 8.1 percent, rent prices outpaced the change in inflation for the metro area, now with a median rent of $1,613 per month.
At the gas pump, Motor City residents saw a 39.5 percent increase as well as 12.9 percent growth in general energy costs. Groceries rose by 8.3 percent, with steak, eggs and coffee increasing more than 20 percent each.
West
On the West coast, the cost of living trended upwards as well. Denver‘s current median rent price is $2,732, which reflects the 8 percent increase in the metro area from Q1 to Q3. Energy costs stayed low and did not drastically increase, giving some relief to local residents — but gasoline rose by nearly 55 percent.
Groceries rose just slightly faster than inflation growth at 6.3 percent. Pantry staples like milk, eggs, bread and butter increased drastically, more than 22 percent each.
Portland‘s rent has remained high with a median cost of $2,556, but it rose on pace with the change in inflation at 4.5 percent. Same with the overall cost of living, Portland residents saw some relief as items and services stayed just below the change in inflation between Q1 and Q3.
Energy costs saw no change except for gasoline, which increased similarly to other cities at 40.7 percent. At the grocery store, prices increased similarly to other cities at 8.3 percent.
Sacramento saw a 10.6 percent cost of living increase including 5.1 percent growth in the rental rate to $2,839. However, it is one of the only cities to not see drastic increases at the grocery store — increasing 3.6 percent. Residents also saw relief in energy costs and utilities, while gasoline costs rose 30 percent.
Cost of living fluctuates across the U.S.
Inflation hasn’t affected every region of the U.S. or basic items every family needs equally. From groceries to energy costs, costs looked different from Q1 to Q3 2022 with some cities rapidly surpassing the change in inflation.
Most of the areas that saw higher prices are in areas of higher inbound migration like the South and Midwest. As we go into 2023, some areas may see relief, but it’s too soon to tell.
Methodology
Cost of living data for the first and third quarter of 2022 is from The Council for Community and Economic Research (C2ER), a nonprofit professional organization comprising research staff of chambers of commerce, economic development organizations and agencies, and related organizations throughout the United States.
Data on inflation is from the U.S. Bureau of Labor Statistics (BLS). Monthly inflation numbers reported by the BLS for January, February, and March 2022 were averaged to obtain an inflation number for the first quarter of 2022. For the third quarter of 2022 same calculation was done across July, August, and September 2022.
Using these calculations, the average inflation level in the first quarter of 2022 was 7.97 percent and 8.33 percent for third quarter. The percent change between those two levels is 4.52 percent. Percent changes in price levels from the first and third quarter C2ER cost of living report were calculated and compared in aggregate and by item for each city in the report to the 4.42 percent change in the rate of inflation from the first to third quarters in 2022. Those locations and items which showed a percent change in prices greater than 4.42 percent were determined to have risen faster than the change in inflation.
