Is Washington D.C. Really More Expensive Than New York?
According to new report from The Washington Post, Washington D.C. is the most expensive place to live in the United States. Yes, even more expensive than New York City.
The Bureau of Labor Statistics says Washingtonians spend the majority of their finances on housing, utilities, furnishing and equipment. In his report “Housing: Before, During and After the Great Recession” economist Demetrio M. Scopelliti compares the expenses of housing between major American cities. Scopelliti’s research relies on 2012 data and construction jobs. The report notes Americans spend on average $16,887 on housing whereas Washington residents spend approximately $28,416.
Despite Scopelliti’s findings, The Wall Street Journal claims they are flawed because the report is based on how much residents are spending but not what they receiving in return. For example, Texas residents may earn $100,000 but spend $400,000 on mansions. In comparison to those who live another state, who may earn a $50,000 income but spend $350,000 in order to live in a home that is a fraction of the size of a mansion.
The Wall Street Journal also notes the average Washington earns $116,000 but may spend $28,000 on housing whereas the average New Yorker’s salary is $81,000 and will have to spend $24,000 on housing. Josh Zumburn, author of the Journal’s counter reaction also states, we also have to consider residents who live but may not work in the New York City region.
The two cities are unquestionably pricey, the question is value. Residents have to decide where they’re getting the most bang for their buck.