The cost of eating: Ranking U.S. cities by grocery spending as a share of income
Grocery prices have continued rising recently due to general inflation and supply issues affecting individual items. For example, bird flu is limiting egg supply, making household budgeting increasingly difficult for American families. According to WalletHub’s analysis, understanding spending power versus sticker price has become crucial. This study ranks cities not by absolute food costs but by the percentage of a typical household’s income spent on groceries, revealing that financial strain often results from low incomes rather than high prices. WalletHub analyzed prices of 26 everyday grocery items across 100 of the largest U.S. cities, comparing these costs to median household income to determine where people spend the largest percentage of earnings on food.
Detroit, Michigan
Detroit residents spend the most on groceries at nearly 3.78% of median household income, the highest percentage nationwide. Detroit has relatively average grocery prices overall, ranking 36th-most expensive. It is costly for lettuce, sugar, and whole milk, but inexpensive for ground beef, tuna, and peaches. The primary issue isn’t high prices but rather Detroit’s second-lowest median annual household income, which is just $39,575.
Cleveland, Ohio
Cleveland residents spend 3.77% of their income on groceries, ranking second-highest. This is mainly because Cleveland has the lowest median household income nationwide at $39,187 annually. Some items are expensive (shortening, soft drinks, bananas), while others remain cheap (whole milk, chicken, coffee). Reasonable grocery prices cannot compensate for exceptionally low incomes.
Birmingham, Alabama
Birmingham residents spend 3.28% of their income on groceries, ranking third-highest, driven by the fifth-lowest median household income at $44,376 annually. Birmingham has expensive potatoes and soft drinks, but remains among the least costly for corn flakes and detergent—high spending percentages result primarily from low incomes rather than inflated food prices.
Newark and Toledo
Newark ranks fourth with 3.16% of income spent on groceries, while Toledo ranks fifth at 3.09%, continuing the pattern where low median incomes drive high grocery spending percentages.
The common thread
Low income, rather than high food prices, defines cities where grocery costs most financially strain residents, according to WalletHub’s findings. Cities spending the highest percentages consistently feature among the lowest median household incomes nationally.
Cities spending the least
Fremont, California, residents experience the least grocery strain, spending less than 1% (0.96%) of their median household income on groceries despite California’s generally high food prices. San Jose (1.16%), San Francisco (1.22%), Irvine (1.23%), and Gilbert, Arizona (1.24%) round out the five least-strained cities. While food prices may be high in these metros, exceptionally high median incomes render grocery costs relatively negligible.
Practical advice for saving money
Chip Lupo, WalletHub Writer and Analyst, advises that shoppers should “take advantage of sales and coupons, buy generic items, and buy in bulk if possible.” Creating a detailed budget and utilizing shopping lists prevents impulse purchases. Taking advantage of store loyalty programs, looking for clearance items near expiration, and buying store-brand alternatives can reduce costs significantly. Using rewards credit cards for grocery purchases earns cash back that offsets the costs of purchases.
Conclusion
Grocery burden functions more often as a result of low income than high prices, according to WalletHub’s analysis. Smart spending and detailed budgeting remain essential, especially for residents in financially affected cities where groceries consume a disproportionate share of income, showing that earning power ultimately determines food affordability more than sticker prices alone.
Learn more about this issue by checking out the source of this article.
Related:
- US cities with the worst inflation problems: Did yours make the list?.
- The Inflation-Resistant Real Asset ETF Portfolio
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