Rhode Islanders pay a significant premium to live here.
The cost of living in the Providence metropolitan area was 23% higher than the national average last year, according to the latest index from the Center for Regional Economic Competitiveness. That made Providence the 25th-most expensive U.S. jurisdiction out of about 300 examined by the Virginia-based research group, data provided to WPRI.com shows.
The country’s most expensive places were Manhattan (125% above average), Brooklyn (79%), Honolulu (67%), San Francisco (63%) and San Jose (57%); the cheapest were Harlingen, Texas, and Norman, Okla. The costliest metropolitan area in New England was Bridgeport (46% above average), followed by Boston (40%), New Haven (28%), Hartford (24%) and Providence.
Here’s how the Center’s Dean Frutiger describes its methodology:
The composite index numbers is composed of the six individual component categories, groceries, housing, utilities, transportation, medical care, and miscellaneous. Each of the categories has a weight attached to it, respectively, 13.56, 27.02, 10.30, 12.35, 4.60, and 32.17. These numbers represent the percent of average annual income spent in those categories by a professional/managerial household. The composite index number therefore, is composed of 13.56% of the grocery index, 27.02% of the housing index, etc.
Housing is the category where Providence-area residents pay the biggest premium, 32% more than the national average. They also pay 29% more for miscellaneous goods, 27% more for utilities and 17% more for health care, but only 5% more for transportation.
By Dan McGowan
PROVIDENCE, R.I. (WPRI) – A Providence-based startup founded by one of the state’s most successful technology entrepreneurs has been named one of the “America’s Most Promising Companies” by Forbes Magazine.
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