May 2014
Update from the U.S. Bureau of Economic Analysis
Real Per Capita Income in the 15 Largest Employment Metros, 2008-2012
In the Washington Metro Area (WMA), per capita personal income (PCPI) was $61,743 in 2012. Of the
15 largest1 metros2, only San Francisco-Oakland had a higher PCPI. However, after adjusting for regional
prices and inflation, the real PCPI in the WMA was $48,645 in 2008 dollars. The real PCPI allows for
consistent comparisons over time by adjusting for inflation and across metro areas by adjusting for the
cost of living by metro area.
As shown in Figure 1, the WMA had the third highest real PCPI of the largest metros, behind both San
Francisco-Oakland and Boston. The unadjusted PCPI in Boston is lower than that of the WMA. But
because the cost of living in Boston is lower than that of the WMA, the real PCPI in Boston is higher.
Figure 1. Real Per Capita Income in 15 Largest Employment Metros*, 2012
(in thousands of 2008 $s)
60
52.1
51.4
48.6
48.1
47.3
46.3
45.4
44.8
43.3
40
43.0
41.0
40.6
40.0
37.2
36.2
20
0
*As defined by the Office of Management and Budget in 2013
Source: U.S. Bureau of Economic Analysis, GMU Center for Regional Analysis
1
2
As measured by employment.
As defined by the Office of Management and Budget in 2013.
George Mason University Center for Regional Analysis
cra.gmu.edu
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Before accounting for inflation and prices of goods and services, PCPI in the WMA increased 5.4 percent
between 2008 and 2012. But prices of goods and services in the WMA rose faster than incomes,
resulting in a decline in real PCPI of 4.1 percent. While 10 of the top 15 employment metros also had
declines in real PCPI over this period, the WMA had the third largest percentage decline (Figure 2).
Figure 2. Percent Change in Real Per Capita Income in 15 Largest Employment Metros*
2008-2012
Detroit
1.9%
Boston
SF-Oakland
Philadelphia
Dallas
1.4%
0.8%
0.4%
0.2%
-0.2% Atlanta
-1.4% Minneapolis
-1.5% Houston
-1.8% New York
-2.6%
-2.7%
-3.1%
Seattle
Miami
-5.1%
Los Angeles
-5.7%
-6.0%
Chicago
WMSA
-4.1%
-9.0%
Phoenix
-3.0%
0.0%
3.0%
*As defined by the Office of Management and Budget in 2013
Source: U.S. Bureau of Economic Analysis, GMU Center for Regional Analysis
George Mason University Center for Regional Analysis
cra.gmu.edu
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Regional Price Parity in the 15 Largest Employment Metros
Prices of goods and services in the WMA were 20.4 percent higher than the national average in 2012.
Among the top 15 employment metros, the WMA had the third highest cost of living, behind New York
and San Francisco-Oakland (Figure 3). Only Phoenix, Detroit and Atlanta had lower overall costs than the
national average.
As compared to 2008, prices of goods and services in the WMA have risen 3.8 percentage points, from
116.6 percent of the national average cost in 2008. Only Los Angeles had a higher increase in prices,
rising from 102.5 percent of the nation in 2008 to 118.2 percent of the nation in 2012. Only five metro
areas had a decrease in regional price parity between 2012 and 2008, making them relatively less
expensive in 2012 than in 2008: Atlanta (-3.6 percentage points), Phoenix (-2.8 percentage points),
Detroit (-2.0 percentage points), Dallas (-1.4 percentage points) and Miami (-0.2 percentage points).
Figure 3. Regional Price Parity of All Goods and Services, 15 Largest Employment Metros*
2008 and 2012 (as a percent of the national average)
2012
2008
130
122.2 121.3
120.4
120
118.2
100 = national average
111.6
110
109.0 107.0
106.6 105.0
103.0
101.0 100.7
100
99.7
97.8
95.6
90
*As defined by the Office of Management and Budget in 2013
Source: U.S. Bureau of Economic Analysis, GMU Center for Regional Analysis
George Mason University Center for Regional Analysis
cra.gmu.edu
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The increase in the overall prices of goods and services in the WMA was driven by an increase in rental
costs. In 2008, rental costs were 48.1 percent higher than the national average. In 2012, rental costs
were 69.6 percent higher than the national average, an increase of 21.5 percentage points. This is the
largest increase of the top 15 metro areas and the third highest percentage point increase of all 381
metros, behind San Jose-Sunnyvale and State College, PA.
Figure 4. Regional Price Parity of Rents, 15 Largest Employment Metros*, 2008 and 2012
(as a percent of the national average)
2012
2008
200
181.5
180
160
169.6 168.5
157.1
140.4
140
120
100 = national average
128.4 128.0
117.4 113.6
110.6
99.4
100
80
98.7 98.3 93.0
88.8
*As defined by the Office of Management and Budget in 2013
Source: U.S. Bureau of Economic Analysis, GMU Center for Regional Analysis
GMU Center for Regional Analysis
CRA provides research and analytical services to local governments, businesses and other stakeholders focusing on economic,
demographic, transportation, housing and fiscal trends and forecasts.
The Center for Regional Analysis has become the “go-to” organization for economic, demographic and housing data and analysis in
the Washington region and is regularly cited as the source of information for the media, research scholars, and investors interested
in understanding the regional economy. CRA posts research reports, presentations, data and other information on our website at
cra.gmu.edu.
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cra.gmu.edu
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