The States That Spend the Most Going Out, Adjusted for Price Differences

Key Takeaways

• A Colorado resident spends about $5,600 each year eating out or staying in hotel accommodations, the highest in the country, after adjusting for price differences between states.
• Despite the cost accounting, wealthier states still spend more, suggesting that states with higher incomes have greater discretionary spending.
• For example, most of the poorer southern states spend less, with West Virginians only allocating $3,000 to outside food services per year.
• Note: regions are based off the Census Bureau's categories. Missouri is considered culturally South, and DC is generally regarded as the Northeast.

🤔 How Was this Metric Calculated?

• Data are 2024 per-capita personal consumption expenditures (PCE) for food services & accommodations from the Bureau of Economic Analysis (BEA).
• To compare states on a like-for-like price basis, we divide each state’s figure by BEA’s 2023 Regional Price Parity (RPP) for “Other services” (U.S.=100), expressing results in 2024 dollars at the national price level.
• RPPs measure price levels across places and the BEA classifies food services & accommodations under “Other services.”
•  2024 category RPPs are not yet published, so 2023 is used as a proxy as year-to-year changes in relative price levels are typically small.

What Does “Food services & Accommodations” include?

• Accommodation: Establishments like hotels, motels, resorts, bed and breakfasts, and campgrounds.
• Food Services: Businesses that prepare and serve meals, snacks, and beverages for immediate consumption, both on and off the premises.