Purchase Power Comparison

A long list of factors goes into the equation used by Money magazine to determine how far a paycheck goes in different American cities. The cost of owning a home, utilities, groceries, transportation and other expenses are part of the budget.

Let’s say a worker takes home $30,000 per year in Atlanta. He would need to make only $27,957 in Little Rock to maintain a comparable lifestyle.

The Purchase Power Comparison chart reveals differences among some regional and national cities and how they stack up to Little Rock on $30,000 a year.

If your salary is $30,000* in … — Salary needed for same lifestyle in Little Rock is …

Shreveport, La. — $32,075
Jackson, Miss. — $31,478
Memphis — $31,409
Tulsa — $31,173
Oklahoma City — $31,003
Nashville, Tenn. — $30,574
Birmingham, Ala. — $30,412
Houston — $30,316
Dallas — $29,598
New Orleans — $29,148
Austin, Texas — $28,204
Atlanta — $27,957
West Palm Beach, Fla. — $27,449
Denver — $26,270
Washington, D.C. — $25,343
Seattle — $24,585
Los Angeles — $20,543
Boston — $18,674
San Francisco — $13,797
New York City — $11,935

*Figures are generated from the past four quarters ending second-quarter 2001. Source:

Dollar for Dollar

According to statistics from the Bureau of Economic Analysis, an arm of the U.S. Department of Commerce, Little Rock’s annual per capita personal income in 1999 was $27,571 (the national average was $28,546).

The following chart includes annual per capita income figures for 20 regional and national cities, ranked by per capita income.*

Annual per capita income*
Little Rock — $27,571
National Average — $28,546

Dallas — $34,690
Atlanta — $32,486
Houston — $32,386
Austin, Texas — $31,794
Nashville, Tenn. — $30,510
Memphis — $28,828
Birmingham, Ala. — $27,896
Tulsa — $27,654
New Orleans — $25,960
Oklahoma City — $24,437
Shreveport, La. — $24,053
New York City — $38,814
Washington, D.C. — $38,403
Boston — $36,285
Denver — $36,058
Chicago — $34,743
Kansas City, Mo. — $30,225
Los Angeles — $28,276
Miami — $26,682
Albuquerque, N.M. — $25,619

*Figures are for 1999. Source: U.S. Bureau of Economic Analysis.

The Basics

This is a handy chart of statistics for Little Rock listing its population, average temperature, unemployment rate, cost of living index, median age and job growth forecast.*

Little Rock population — 183,133
Little Rock MSA population — 559,074
Area — 122 sq. miles
Median age — 34.10
Cost of living index (NA: 100) — 97.6
Median cost of a three-bedroom home — $102,500
Home value change in 2000-2001 (NA: 7.8%) — 5.9%
Unemployment rate (NA: 4%) — 3.3%
Forecast job growth through 2012 (NA: 10.8%) — 4.8%
Average annual temperature — 61.7° F
Air quality rating (0 worst-200 best) — 69
Average commute (NA: 19.23 minutes) — 16.7 minutes
Water quality index (higher is better, NA: 52) — 93

*Figures are for 2000 and 2001. NA: national average.
Sources: Bureau of the Census, Bureau of Labor Statistics, Money magazine, Bureau of Economic Analysis, Bestplaces.net, Little Rock Regional Chamber of Commerce, Cooperative Arkansas Realtors Multiple Listing Service.

Housing and Utility Costs

Although housing is always a huge expense, purchasing a home in a good market can make the home-buying process somewhat less painful.

Little Rock compares favorably to the cities in its region when it comes to housing. According to the Cooperative Arkansas Realtors Multiple Listing Service, the median cost of a three-bedroom home in Little Rock is $102,500. The below figures compare the median cost of all homes sold in Little Rock to all homes sold in a selection of other cities. This information was obtained through Bestplaces.net, a Web site that uses more than 105 public and private sources to provide facts about cities to major publications.

City — Median cost of 3-bedroom home* — Change in home value since 1997 — Utility costs in 2000-01**
Little Rock — $102,500 — 5.9% — $116.50†
National Average — $146,102 — 7.8% — $100

Atlanta — $140,070 — 7% — $97.10
Nashville, Tenn. — $131,840 — 9.4% — $88.20
Austin, Texas — $130,580 — 14.6% — $104.70
Dallas — $124,520 — 8.9% — $107.20
Birmingham, Ala. — $121,440 — 3.2% — $103
New Orleans — $109,090 — 6.2% — $135
Jackson, Miss. — $102,570 — 14.6% — $89.20
Houston — $102,190 — 13.7% — $100.10
Tulsa — $96,900 — 7.3% — $85.40
Memphis — $94,540 — 12.5% — $83.10
Shreveport, La. — $93,680 — 3.7% — $92.30
New York City — $341,330 — 12.2% — $179.60
Los Angeles — $231,510 — 12.5% — $119.70
Seattle — $223,320 — 5.7% — $67.20
Boston — $187,180 — 13.2% — $138.10
Washington, D.C. — $176,860 — 11.6% — $97
Denver — $168,150 — 16.8% — $85.60
Miami — $147,180 — 9.5% — $103.10
Chicago — $136,440 — 2.1% — $110.60

*Reflects data as of second-quarter 2001 for all homes sold in the area.
**Reflects data from second-quarter 2000 through second-quarter 2001.
†The ice storms of 2000 increased average utility costs for Little Rock from previous years.