Real Personal Income by State and Metropolitan Area, 2019

Real authorities individual income grew 2.4 percent successful 2019 aft expanding 3.1 percent successful 2018, according to estimates released coming by nan Bureau of Economic Analysis (BEA). Real authorities individual income is simply a state's current-dollar individual income adjusted by nan state's location value parity and nan nationalist individual depletion expenditures value index. The percent alteration successful existent authorities individual income ranged from 4.1 percent successful Maine to 0.7 percent successful Hawaii, Wyoming, and Rhode Island (table 1). Across metropolitan areas, nan percent alteration ranged from 7.6 percent successful Hanford-Corcoran, CA, to –3.2 percent successful Panama City, FL, and Wheeling, WV-OH (table 4).

Real Personal Income successful 2019

• States pinch nan fastest maturation successful existent individual income were Maine (4.1 percent), Washington (4.0 percent), and Utah (3.8 percent).
• No authorities had a diminution successful existent individual income. States pinch nan slowest maturation successful existent individual income were Rhode Island (0.7 percent), Wyoming (0.7 percent), and Hawaii (0.7 percent).
• Large metropolitan areas—those pinch populations greater than 2 million—with nan fastest maturation successful existent individual income were Austin-Round Rock-Georgetown, TX (5.3 percent), Denver-Aurora-Lakewood, CO (4.0 percent), and Riverside-San Bernardino-Ontario, CA (3.7 percent).
• Large metropolitan areas pinch nan slowest maturation successful existent individual income were Miami-Fort Lauderdale-Pompano Beach, FL (1.4 percent), Chicago-Naperville-Elgin, IL-IN-WI (1.4 percent), and Detroit-Warren-Dearborn, MI (1.4 percent).

Regional Price Parities successful 2019

Regional value parities (RPPs) measurement nan differences successful value levels crossed states and metropolitan areas for a fixed twelvemonth and are expressed arsenic a percent of nan wide nationalist value level. The each items RPP covers each depletion equipment and services, including lodging rents. Areas pinch high/low RPPs typically correspond to areas pinch high/low value levels for rents.

• States pinch nan highest RPPs were Hawaii (119.3), California (116.4), and New York (116.3) (table 3).
• States pinch nan lowest RPPs were Mississippi (84.4), Arkansas (84.7), and Alabama (85.8).
• Across states, California had nan highest RPP for lodging rents (153.6), and Mississippi had nan lowest (60.0).
• Large metropolitan areas pinch nan highest RPPs were San Francisco-Oakland-Berkeley, CA (134.5), New York-Newark-Jersey City, NY-NJ-PA (125.7), and Los Angeles-Long Beach-Anaheim, CA (118.8) (table 6).
• Large metropolitan areas pinch nan lowest RPPs were Cleveland-Elyria, OH (89.9), St. Louis, MO-IL (90.1), and Cincinnati, OH-KY-IN (90.6).
• Across ample metropolitan areas, San Francisco-Oakland-Berkeley, CA, had nan highest RPP for lodging rents (200.3), and Cleveland-Elyria, OH, had nan lowest (76.3).
• Across each metropolitan areas, San Jose-Sunnyvale-Santa Clara, CA, had nan highest RPP for lodging rents (224.0), and Beckley, WV, had nan lowest (44.0).

Next release: December 14, 2021, astatine 8:30 A.M. EST
Real Personal Consumption Expenditures by State and
Real Personal Income by State and Metropolitan Area, 2020

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Technical Notes connected Regional Price Parities and Implicit Regional Price Deflators

Price indexes commonly measurement value changes complete time. The BEA individual depletion expenditures (PCE) value scale and nan Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) are 2 examples. Spatial value indexes measurement value level differences crossed regions for 1 clip period. An illustration of this type of scale is purchasing powerfulness parities (PPPs), which measurement differences successful value levels crossed countries for a fixed period, and tin beryllium utilized to person estimates of per capita gross home merchandise into comparable levels successful a communal currency. The RPPs that BEA has developed comparison regions wrong nan United States but without nan request for rate conversion. An implicit location value deflator (IRPD) tin beryllium derived by combining nan RPPs and nan U.S. PCE value index.

Regional value parities. The RPPs are calculated utilizing value quotes for an array of items from nan CPI, which are aggregated into broader expenditure categories (such arsenic food, transportation, aliases education).1 Data connected rents are obtained separately from nan Census Bureau American Community Survey (ACS). The expenditure weights for each class are constructed utilizing CPI expenditure weights, BEA individual depletion expenditures, and ACS rents expenditures.2

The broader categories and nan information connected rents are mixed pinch nan expenditure weights utilizing a multilateral aggregation method that expresses a region's value level comparative to nan United States.3

For example, if nan RPP for area A is 120 and nan RPP for area B is 90, past connected average, prices are 20 percent higher and 10 percent little than nan U.S. mean for A and B, respectively. If nan individual income for area A is $12,000 and nan individual income for area B is $9,000, past RPP-adjusted incomes are $10,000 (or $12,000/1.20) and $10,000 (or $9,000/0.90) for A and B, respectively. In different words, nan purchasing powerfulness of nan 2 incomes is balanced erstwhile adjusted by their respective RPPs.

Implicit location value deflator. The IRPD is simply a location value scale derived arsenic nan merchandise of 2 terms: nan location value parity and nan U.S. PCE value index.

The implicit location value deflator will adjacent current-dollar individual income divided by existent individual income successful chained dollars. The maturation rate, aliases year-to-year change, successful nan IRPDs is simply a measurement of location inflation.4

Detailed accusation connected nan methodology utilized to estimate RPPs whitethorn beryllium recovered connected nan location methodology page of nan BEA website: https://www.bea.gov/regional/methods.cfm.

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1 The BEA Regional Price Parity statistic are based successful portion connected restricted entree Consumer Price Index information from nan Bureau of Labor Statistics (BLS). The BEA statistic presented herein are products of BEA and not BLS.

2 To estimate RPPs, CPI value quotes are value adjusted and pooled complete 5 years. The ACS rents are besides value adjusted and are either yearly for states aliases pooled complete 3 years for metropolitan areas. The expenditure weights are circumstantial for each year.

3 The multilateral strategy that is utilized is nan Geary additive method. Any region aliases operation of regions whitethorn beryllium utilized arsenic nan guidelines aliases reference region without nonaccomplishment of consistency.

4 The maturation complaint of nan implicit location value deflators will not needfully adjacent nan region aliases metro area value deflators published by nan BLS. This is because nan CPI deflators are calculated straight while nan IRPDs are indirect estimates, and because of differences successful nan root information and methodology.