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Local cost of living remains below national average
By Robert Carreira, Ph.D./Director, Center for Economic Research
According to the ACCRA Cost of Living Index, the cost of living in Cochise County was 2.4 percent lower than the national average in the first quarter of 2010. This suggests a decline in the local cost of living relative to the rest of the nation. In 2009, Cochise County's cost of living was only 0.8 percent below the national average.
The Council for Community and Economic Research in Arlington, VA administers the Cost of Living Index, which measures relative price levels for consumer goods and services in participating areas. The index includes separate weighted sub-indices for grocery items, housing, utilities, transportation, health care, and miscellaneous goods and services. The report, released this month, provides comparative data for 308 urban areas in all 50 states.
The cost of living in Cochise County in the first quarter was 0.8 percent higher than in Tucson. This is a widening of the gap from last year, when local costs were only 0.1 percent higher than in Tucson. The primary reason for the widening of the gap was relative increases in the local cost of groceries, utilities, and miscellaneous goods and services, and relative declines in the cost of groceries, housing, utilities, and miscellaneous goods and services in Tucson.
In the first quarter, the cost of living in Cochise County was 1.9 percent below that of Phoenix-a reversal of the trend from last year. In 2009, the local cost of living was 0.8 percent higher than in Phoenix.
The reason for the decrease in the cost of living in Cochise County from last year, relative to the national average, was relative decreases in the cost of housing, transportation, and health care. These were partially offset by relative increases in the local cost of grocery items, utilities, and miscellaneous goods and services.
Grocery items in Cochise County, which were 0.3 percent above the national average in 2009, increased to 0.5 percent above the national average in the first quarter of 2010. Housing costs, which include home prices and rental rates, decreased from 2009 to the first quarter of 2010, relative to national averages. In 2009, the cost of housing in Cochise County was 4.1 percent above the national average. In the first quarter of this year, local housing costs dropped to 1.4 percent below the national average.
In the first quarter, the local cost of utilities was 2.9 percent below the national average, up from 5.7 percent below the national average last year. Transportation costs, which include gasoline and automobile maintenance, were 0.6 percent below the national average in the first quarter. Last year, local transportation costs were 2.6 percent above the national average.
Health care costs in Cochise County were 9.5 percent below the national average in the first quarter, compared to only 2.6 percent below the national average in 2009. The cost of miscellaneous goods and services in Cochise County was 4.1 percent below the national average, up from 5.3 percent below the national average last year.
Statewide, there were seven places participating in the ACCRA Cost of Living Index in the first quarter of 2010. In addition to Cochise County, other participating areas were Flagstaff, Lake Havasu City, Phoenix, Prescott-Prescott Valley, Tucson, and Yuma. Of these, only Tucson had an overall cost of living that was lower than Cochise County. The highest cost of living in Arizona was in Flagstaff, which was 16.9 percent above the national average.
ACCRA Cost of Living Index data for Cochise County are listed under the Sierra Vista-Douglas Micropolitan Area, which is a statistical designation for all of Cochise County. Sierra Vista and Douglas are included in the title since they are the principal cities that meet the criteria for establishing Cochise County as a micropolitan statistical area. To qualify as a micropolitan statistical area, a location must be economically integrated and have at least one urban area with a population of at least 10,000, but less than 50,000.
The ACCRA Cost of Living Index data for Cochise County are collected by the Cochise College Center for Economic Research and submitted to the Council for Community and Economic Research for inclusion in the index. Cochise County's participation is sponsored by the Sierra Vista Economic Development Foundation, which covers the cost of data collection.
Robert Carreira, Ph.D. is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER's website at www.cochise.edu/cer.
The Council for Community and Economic Research in Arlington, VA administers the Cost of Living Index, which measures relative price levels for consumer goods and services in participating areas. The index includes separate weighted sub-indices for grocery items, housing, utilities, transportation, health care, and miscellaneous goods and services. The report, released this month, provides comparative data for 308 urban areas in all 50 states.
The cost of living in Cochise County in the first quarter was 0.8 percent higher than in Tucson. This is a widening of the gap from last year, when local costs were only 0.1 percent higher than in Tucson. The primary reason for the widening of the gap was relative increases in the local cost of groceries, utilities, and miscellaneous goods and services, and relative declines in the cost of groceries, housing, utilities, and miscellaneous goods and services in Tucson.
In the first quarter, the cost of living in Cochise County was 1.9 percent below that of Phoenix-a reversal of the trend from last year. In 2009, the local cost of living was 0.8 percent higher than in Phoenix.
The reason for the decrease in the cost of living in Cochise County from last year, relative to the national average, was relative decreases in the cost of housing, transportation, and health care. These were partially offset by relative increases in the local cost of grocery items, utilities, and miscellaneous goods and services.
Grocery items in Cochise County, which were 0.3 percent above the national average in 2009, increased to 0.5 percent above the national average in the first quarter of 2010. Housing costs, which include home prices and rental rates, decreased from 2009 to the first quarter of 2010, relative to national averages. In 2009, the cost of housing in Cochise County was 4.1 percent above the national average. In the first quarter of this year, local housing costs dropped to 1.4 percent below the national average.
In the first quarter, the local cost of utilities was 2.9 percent below the national average, up from 5.7 percent below the national average last year. Transportation costs, which include gasoline and automobile maintenance, were 0.6 percent below the national average in the first quarter. Last year, local transportation costs were 2.6 percent above the national average.
Health care costs in Cochise County were 9.5 percent below the national average in the first quarter, compared to only 2.6 percent below the national average in 2009. The cost of miscellaneous goods and services in Cochise County was 4.1 percent below the national average, up from 5.3 percent below the national average last year.
Statewide, there were seven places participating in the ACCRA Cost of Living Index in the first quarter of 2010. In addition to Cochise County, other participating areas were Flagstaff, Lake Havasu City, Phoenix, Prescott-Prescott Valley, Tucson, and Yuma. Of these, only Tucson had an overall cost of living that was lower than Cochise County. The highest cost of living in Arizona was in Flagstaff, which was 16.9 percent above the national average.
ACCRA Cost of Living Index data for Cochise County are listed under the Sierra Vista-Douglas Micropolitan Area, which is a statistical designation for all of Cochise County. Sierra Vista and Douglas are included in the title since they are the principal cities that meet the criteria for establishing Cochise County as a micropolitan statistical area. To qualify as a micropolitan statistical area, a location must be economically integrated and have at least one urban area with a population of at least 10,000, but less than 50,000.
The ACCRA Cost of Living Index data for Cochise County are collected by the Cochise College Center for Economic Research and submitted to the Council for Community and Economic Research for inclusion in the index. Cochise County's participation is sponsored by the Sierra Vista Economic Development Foundation, which covers the cost of data collection.
Robert Carreira, Ph.D. is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER's website at www.cochise.edu/cer.
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