Rural Residents Are Big Spenders on Transportation

Households in rural areas spend slightly less than their urban counterparts. The average rural household spent $58,241 in 2017, according to the Consumer Expenditure Survey—4 percent less than the $60,468 spent by the average urban household. But, not surprisingly, rural households are the biggest spenders on several transportation categories...

• Vehicle purchases: Rural households own more vehicles than urban households (2.6 versus 1.8), and they spend 28 percent more than the average household on vehicle purchases. Their spending is particularly high (48 percent above average) on used vehicles. Households in urban areas spend 6 percent less than average on vehicle purchases.
• Vehicle finance charges: Rural households spend 31 percent more than average on vehicle finance charges. Urban households spend 7 percent less than average. 
• Gasoline: Rural households spend 26 percent more than average on gasoline. Households in urban areas spend 6 percent less than average. 
• Vehicle maintenance/repair: Rural households spend 53 percent more than average on vehicle repair. Households in urban areas spend 12 percent less.

Because their spending is above average on these items, rural households are the biggest spenders on the overall transportation category. The average rural household spent $11,466 on transportation in 2017—$2,315 more than the $9,151 spent by the average urban household. Rural residents devote 20 percent of their household budget to transportation. For urban households, the figure is 15 percent.

Source: Demo Memo analysis of the Bureau of Labor Statistics' Consumer Expenditure Survey