The first figure, the bar chart based on the BLS Consumer Expenditure Survey shows almost the same expenditures in Atlanta, Georgia and Los Angeles, California, with somewhat higher overall expenditures in Atlanta and somewhat lower housing expenditures relative to transportation in Atlanta.
Median list price per square foot is $478/sq foot in Los Angeles
Median list price of homes is $750,000
That is a radical difference in housing prices that does not seem to show up in the figure in the article. Presumably salaries and budgets are proportionately lower in Atlanta than Los Angeles.
Is this really an accurate and adequate explanation? I know people who have moved from Atlanta where they could afford a house and had to downsize to a smaller apartment in the San Francisco Bay Area which is somewhat more expensive than Los Angeles, but in the same ballpark.
Is Los Angeles really more affordable than Atlanta?
[ADDED]
The US Census reports:
Fulton County, GA (Atlanta area)
Median Household Income (2012-16): $58,851
Per capita income for past 12 months (2012-16): $39,101
Note that Fulton County, GA (Atlanta) has a higher median household income than Los Angeles County, and much lower median home prices according to Zillow.
It is unclear what the consumer expenditure report is computing. It may be the percentage of total expenditures NOT INCLUDING SAVINGS AND TAXES, rather than gross income:
However, Zillow gives a median home value of about $220,000 in Atlanta: https://www.zillow.com/atlanta-ga/home-values/
Median list price per square foot is $219
Median home list price is $310,000
Zillow gives a median home value of about $663,000 in Los Angeles: https://www.zillow.com/los-angeles-ca/home-values/
Median list price per square foot is $478/sq foot in Los Angeles
Median list price of homes is $750,000
That is a radical difference in housing prices that does not seem to show up in the figure in the article. Presumably salaries and budgets are proportionately lower in Atlanta than Los Angeles.
Is this really an accurate and adequate explanation? I know people who have moved from Atlanta where they could afford a house and had to downsize to a smaller apartment in the San Francisco Bay Area which is somewhat more expensive than Los Angeles, but in the same ballpark.
Is Los Angeles really more affordable than Atlanta?
[ADDED]
The US Census reports:
Fulton County, GA (Atlanta area)
Median Household Income (2012-16): $58,851
Per capita income for past 12 months (2012-16): $39,101
https://www.census.gov/quickfacts/fact/table/fultoncountygeo...
Los Angeles County, CA
Median Household Income (2012-16): $57,952
Per capita income for past 12 months (2012-16): $29,301
https://www.census.gov/quickfacts/fact/table/losangelescount...
Note that Fulton County, GA (Atlanta) has a higher median household income than Los Angeles County, and much lower median home prices according to Zillow.
It is unclear what the consumer expenditure report is computing. It may be the percentage of total expenditures NOT INCLUDING SAVINGS AND TAXES, rather than gross income:
https://www.bls.gov/opub/hom/cex/calculation.htm
Hence people in Atlanta may be saving more but spending a similar percentage of TOTAL EXPENDITURES to people in Los Angeles.