Use the Bureau of Economic Analysis. This agency collects data on regional price parities, meaning the differences in costs between states. To start the comparison, go to https://www.bea.gov/iTable/iTable.cfm?reqid=70&step=1&isuri=1&acrdn=8#reqid=70&step=29&isuri=1&7022=101&7023=8&7024=non-industry&7001=8101&7090=70.
The cost-of-living index gives you the percentage difference in the cost of living between your location and another. It's particularly useful to compare international locations because it compensates for exchange rate differences. Since it's an index, the cost of living in your area is always 100. A gallon of gas in 1994 cost $1.06, making it $1.64 in June 2014, when adjusted for inflation. The actual national average price, as of July 2018, is $2.88 – 75% higher than what it would be if inflation were the only cause for the increase.
[3]- Click on 'Regional Price Parities,' and then 'RPP2--Regional Price Parities by MSA and state portion.' On the next page, choose 'Metropolitan Statistic Area.'
- Select multiple cities by holding down the control button on the keyboard and then clicking on each city. Choose between 'All statistics in table,' 'RPPs: All items,' 'RPPs: Rents,' and 'RPPs: Goods.' These let you look at just the rent disparities, just the goods disparities, or all at once.
- Select the most recent year on the next page.
- The final page will bring up a chart of regional price parities in the cities you choose. 100 is the national average, meaning if the number is below 100, the cost of living for that city is below the national average. If the number is above 100, it's above the national average.