Debt.com – Cheaper Cities Hit Hardest by Inflation
No one is safe from the record-high inflation America has seen this year. Rich or poor, everybody is feeling the sting of rising prices.
A new study shows, however, that pricier cities aren’t seeing the same inflation rates as other parts of the country. Inflation is rising the most in Phoenix, AZ, according to Wallethub’s analysis of the 23 biggest metropolitan areas. On the other end, Anchorage, AK saw the least amount of inflation.
Cities where inflation is rising the most:
Phoenix, AZ
Atlanta, GA
Tampa, FL
Miami, FL
Dallas, TX
Cities where inflation is rising the least:
Honolulu, HI
Los Angeles, CA
New York, NY
San Francisco, CA
Anchorage, AK
But even though Anchorage isn’t seeing Phoenix’s price increases, the cost of living (COL) there is much higher. It’s about 18 percent more expensive to live in Anchorage. The COL is calculated based on the average cost of basic goods like food and shelter. While inflation is the rate at which costs rise.
So if Phoenix is so much cheaper than Anchorage, why is it getting hit with the most inflation? Phoenix economist Jim Rounds says it boils down to housing investors and economic growth. Low property taxes entice buyers – most of the top five cities have taxes below the national average. Job growth in the area, however, also brings in new people looking for work.
“These investors will buy properties, rent them out, compete with hotels, and others,” Rounds told Debt.com. “But that also means that those homes aren’t available for workers.”
