According to the Bureau of Economic Analysis, real state personal income grew 2.6 percent in 2017, after increasing 1.5 percent in 2016. Real state personal income is a state’s current-dollar personal income adjusted by the state’s regional price parity and the national personal consumption expenditures price index. The percent change in real state personal income ranged from 4.5 percent in New York to -1.3 percent in North Dakota. Across metropolitan areas, the percent change ranged from 14.8 percent in Midland, MI to -5.9 percent in Enid, OK.
Real Personal Income in 2017
- States with the fastest growth in real personal income were New York (4.5 percent), Oklahoma (3.9 percent), and Rhode Island (3.8 percent).
- Two states had declines in real personal income – North Dakota (-1.3 percent) and South Dakota (-0.4 percent). States with the slowest growth in real personal income were Iowa (0.3 percent), New Mexico (0.6 percent), and Kansas (0.8 percent).
- Large metropolitan areas – those with population greater than two million – with the fastest growth in real personal income were New York-Newark-Jersey City, NY-NJ-PA (4.3 percent), Seattle-Tacoma-Bellevue, WA (4.3 percent), and Austin-Round Rock, TX (4.1 percent).
- The large metropolitan areas with the slowest growth in real personal income were Los Angeles-Long Beach-Anaheim, CA (1.6 percent), St. Louis, MO-IL (1.8 percent), and Pittsburgh, PA (1.8 percent).
Regional Price Parities in 2017
Regional Price Parities (RPPs) measure the differences in price levels across states and metropolitan areas for a given year and are expressed as a percentage of the overall national price level. All items RPPs cover all consumption goods and services, including housing rents. Areas with high/low RPPs typically correspond to areas with high/low price levels for rents.
- States with the highest RPPs were Hawaii (118.5), New York (115.8), and California (114.8) (table 3). The District of Columbia’s RPP was 116.9.
- States with the lowest RPPs were Mississippi (85.7), Arkansas (86.5), and Alabama (86.7).
- Across states, Hawaii had the highest RPP for rents (156.4) and West Virginia had the lowest (61.4).
- Large metropolitan areas with the highest RPPs were San Francisco-Oakland-Hayward, CA (128.0), New York-Newark-Jersey City, NY-NJ-PA (122.3), and Washington-Arlington-Alexandria, DC-VA-MD-WV, (118.4) (table 6).
- Large metropolitan areas with the lowest RPPs were Cincinnati, OH-KY-IN (90.0), Cleveland-Elyria, OH (90.2), and St. Louis, MO-IL (91.4).
- Across large metropolitan areas, San Francisco-Oakland-Hayward, CA had the highest RPP for rents (195.0) and Cleveland-Elyria, OH had the lowest (77.2).
- Across all metropolitan areas, San Jose-Sunnyvale-Santa Clara, CA had the highest RPP for rents (218.4) and Beckley, WV had the lowest (48.5).