Gasoline is one of the largest household expenses. How large? According to the Consumer Expenditure Survey, the average household spent $2,549 on gasoline in 2013. Gasoline ranks a lofty 5th among items on which the average household spends the most (after deductions for Social Security, groceries, vehicle purchases, and rent/mortgage interest).
That was then, when gasoline cost $3.49/gallon. Now, with gas prices at about $2.00/gallon, the average household is projected to spend just $1,461 on gasoline this year—a savings of more than $1,000. Gasoline will fall from 5th to 8th place in the ranking of items on which the average household spends the most—below restaurant meals, health insurance, and property taxes. No wonder Americans' Economic Confidence Index is at a record high and in positive territory for the first time since Gallup started daily tracking of this indicator in 2008.
Showing posts with label gasoline. Show all posts
Showing posts with label gasoline. Show all posts
Tuesday, January 20, 2015
Monday, December 08, 2014
Gas Prices and Housing Values
The higher the price of gas, the lower the value of houses in the suburbs, finds a study by the Brookings Institution. Every 10 percent increase in the price of gasoline lowers average house prices by $7,800 in the outskirts of a city and raises house prices by $5,600 in the city center, report the Brookings researchers. Their findings are based on an analysis of 930,702 home sales in Clark County, Nevada, from 1976 through 2010.
With gas prices falling to a low not seen in years, homeowners in the suburbs may benefit, able to sell their houses for more because buyers will be less averse to a lengthy commute.
Source: The Brookings Institution, Do Gasoline Prices Affect Residential Property Values?
With gas prices falling to a low not seen in years, homeowners in the suburbs may benefit, able to sell their houses for more because buyers will be less averse to a lengthy commute.
Source: The Brookings Institution, Do Gasoline Prices Affect Residential Property Values?
Wednesday, February 13, 2013
Heavy Traffic
The worst part about traffic congestion is not the stop-and-go, delays, or wasted gas, but the unpredictability of it all. If you need to be somewhere at a certain time, you don't know how long your trip will take, forcing you to add extra travel time to your schedule.
That's called Planning Time as opposed to Travel Time, according to Texas A & M Transportation Institute's 2012 Annual Urban Mobility Report. The Transportation Institute has not only named this annoyance, but also measures it using the Planning Time Index or PTI. If your trip has a PTI of 3.00, that means you have to schedule 60 minutes for a trip that would take 20 minutes in light traffic if you want a 95 percent chance of getting there on time.
Average PTI varies by size of metropolitan area from a high of 4.08 in metro areas with populations of 3 million or more to 2.09 in metros with fewer than 500,000 residents. The most unpredictable commute is in Washington, D.C., which has a PTI of 5.72. In other words, when traveling the freeways around Washington, D.C., you have to multiply the estimated commute time in light traffic by six (!) to have a 95 percent chance of getting to your scheduled appointment on time.
That's called Planning Time as opposed to Travel Time, according to Texas A & M Transportation Institute's 2012 Annual Urban Mobility Report. The Transportation Institute has not only named this annoyance, but also measures it using the Planning Time Index or PTI. If your trip has a PTI of 3.00, that means you have to schedule 60 minutes for a trip that would take 20 minutes in light traffic if you want a 95 percent chance of getting there on time.
Average PTI varies by size of metropolitan area from a high of 4.08 in metro areas with populations of 3 million or more to 2.09 in metros with fewer than 500,000 residents. The most unpredictable commute is in Washington, D.C., which has a PTI of 5.72. In other words, when traveling the freeways around Washington, D.C., you have to multiply the estimated commute time in light traffic by six (!) to have a 95 percent chance of getting to your scheduled appointment on time.
Thursday, August 18, 2011
$1 in Every $10 Is Spent Here
For the average family, there are two items in the budget over which they have little control and which also account for a large share of household spending: gasoline and health care.
In 2008, when gas prices climbed above $4 per gallon, the average household devoted more than 5 percent of its spending to fueling its cars. The figure fell back to 4 percent in 2009 as gas prices declined. Health care absorbs 6 percent of the household budget. Together, gasoline and health care control $1 of every $10 spent by the average household--and that's in a good year, without a spike in gas prices or a health care emergency.
In 2008, when gas prices climbed above $4 per gallon, the average household devoted more than 5 percent of its spending to fueling its cars. The figure fell back to 4 percent in 2009 as gas prices declined. Health care absorbs 6 percent of the household budget. Together, gasoline and health care control $1 of every $10 spent by the average household--and that's in a good year, without a spike in gas prices or a health care emergency.
Tuesday, May 24, 2011
Mass Transit Blues
No matter how high gas prices climb, the 52 percent majority of Americans say they will not use mass transit as their main source of transportation, according to a Gallup poll.
This is not snobbery, but necessity. Fully 46 percent of households in the United States do not have public transportation in their area, according to the American Housing Survey. They have no choice but to keep pumping no matter how high the price.
This is not snobbery, but necessity. Fully 46 percent of households in the United States do not have public transportation in their area, according to the American Housing Survey. They have no choice but to keep pumping no matter how high the price.
Wednesday, May 11, 2011
Rent or Buy?
With home prices continuing to slide, a handful of Americans are finding themselves in the catbird seat, trying to decide whether to rent or buy their next home. Pundits are offering advice, realtors and homebuilders are offering incentives, and the media are dissecting and mapping price-to-rent ratios in cities across the country. Ignore them all. This is a decision that does not require a calculator, but instead an honest appraisal of your life. Only if you meet the following five criteria should you consider buying a house:
1. You love where you live. Buy a house only if you know without a doubt that you want to live in an area--and in a house--for the foreseeable future. Typically, the advice is to buy if you plan to live in an area for at least five years. This is laughable today. You should think decades, not years. In many areas, it takes years just to sell a house. So forget the "starter home," shrewd investment, and flip-this-house concepts. All are out of date. Buy only if you do not plan to sell--ever.
2. Your employer loves you. Buy a house only if you know without a doubt that you have a job or income stream for the foreseeable future. How many working Americans feel that way? Only 52 percent, according to the latest General Social Survey. With the economy still in ICU, even those who think they have job security may be in for a surprise.
3. The economy loves your employer. Maybe your employer really does love you, but does the economy love your employer? If the answer is yes--no matter what Steve Jobs happens to invent next--then you might consider buying a home.
4. You love your spouse (and your spouse loves you). Buy a house only if your marriage will outlast your mortgage. Also, make sure your spouse meets criteria 1, 2, and 3.
5. You can afford the commute. Buy a house only if the commute will not crimp your lifestyle--no matter how high the price of gasoline. House prices may be low in the farflung suburban rings, but you will be trapped in a gasoline ghetto.
1. You love where you live. Buy a house only if you know without a doubt that you want to live in an area--and in a house--for the foreseeable future. Typically, the advice is to buy if you plan to live in an area for at least five years. This is laughable today. You should think decades, not years. In many areas, it takes years just to sell a house. So forget the "starter home," shrewd investment, and flip-this-house concepts. All are out of date. Buy only if you do not plan to sell--ever.
2. Your employer loves you. Buy a house only if you know without a doubt that you have a job or income stream for the foreseeable future. How many working Americans feel that way? Only 52 percent, according to the latest General Social Survey. With the economy still in ICU, even those who think they have job security may be in for a surprise.
3. The economy loves your employer. Maybe your employer really does love you, but does the economy love your employer? If the answer is yes--no matter what Steve Jobs happens to invent next--then you might consider buying a home.
4. You love your spouse (and your spouse loves you). Buy a house only if your marriage will outlast your mortgage. Also, make sure your spouse meets criteria 1, 2, and 3.
5. You can afford the commute. Buy a house only if the commute will not crimp your lifestyle--no matter how high the price of gasoline. House prices may be low in the farflung suburban rings, but you will be trapped in a gasoline ghetto.
Tuesday, March 22, 2011
Why Do Renters Move?
Ask renters why they moved and "for a job" is often what you hear, according to the American Housing Survey. Twenty-five percent of renters who moved in the past year did so for employment reasons.
The job factor is especially important for renters who moved into new housing--newly built apartments or single-family homes. Thirty-two percent of renters who moved into a new unit in the past year cited a new job, a job transfer, or the need to be closer to their job.
With gasoline approaching $4.00 per gallon, the job factor is likely to become increasingly important to renters as they decide where to live.
Source: Bureau of the Census, American Housing Survey
Sunday, December 07, 2008
The Great American Shopping List
Oh, American consumer, how we miss you!
Consumer spending is falling at a 3.1 percent annual rate, according to the latest statistics from the Bureau of Economic Analysis. Many of the nation's retailers reported double-digit declines in October sales, with the New York Times calling it a "collapse" in spending. Since consumer spending accounts for two-thirds of our economy, the belt tightening hurts all of us. To weather what looks like a prolonged economic downturn, businesses large and small need to brush up on consumer spending patterns. There is no better place to start than with The Great American Shopping List.
You can learn most of what you need to know about consumer spending by taking a look at the list--the inventory of every product and service purchased by American households, ranked by how much the average household spends on each item. The federal government collects the information by surveying thousands of households each month, asking them how much they spend on everything from cookies and crackers to video games and recreational vehicles. The Consumer Expenditure Survey data are used to create the all-important Consumer Price Index. Although the list is long, with more than 350 products and services, just 10 items consume more than half of the $50,000 spent by the average household each year. Here they are.
1. Social Security payroll taxes The bad news is that Social Security is our single biggest expense. The average household paid $3,811 into the Social Security trust fund, according to the 2006 Consumer Expenditure Survey. The good news is that this flow of funds reverses direction when you retire. If you don't believe it, join the crowd--only 31 percent of today's workers think Social Security will be their most important source of income in retirement, according to the Employee Benefit Research Institute. The rest will be surprised. The fact is, most American workers do not have a 401(k) or an IRA. Those who do have managed to save very little--and that was before the stock market crash. You don't have to be a number cruncher to realize that Social Security will be even more important tomorrow than it is today. Among people aged 65 or older, 68 percent receive at least half their income from Social Security.
2. Mortgage payments Hyperbole is the word that best describes the media narrative about the dire financial straits of the nation's homeowners. In fact, most homeowners have a manageable, fixed-rate mortgage. Most owe far less on their mortgage than their home is worth. Although there are plans afoot to help homeowners renegotiate their mortgage payment, few will need to take advantage of these efforts. Nevertheless, because mortgage payments are the second largest expense for the average household--an expense that is pretty much non-negotiable--household budget cutting will target items further down the list.
3. Car payments U.S. auto sales are plummeting, down 32 percent in October. Further declines are likely as households cut costs. The automotive industry is caught in a perfect storm--a severe recession, a paradigm shift in what consumers want (hint: better gas mileage), and a demographic transition as SUV-loving baby boomers morph into downsizing empty-nesters. The car payment is one item on which the average household can and is cutting back, forcing car manufacturers to beg the federal government for handouts to stay afloat.
4. Groceries Food prices have been rising at a pace not seen for decades, and forecasters say costs will continue to climb. Americans do not like paying higher prices for food, but they have little choice unless they want to plow up the backyard. Groceries are the fourth largest item in the Great American Shopping List. For grocery stores, the cutback in consumer spending could be good news, since a growing proportion of budget-minded shoppers are likely to head to a grocery store rather than a restaurant. In the grocery aisles, private labels will flourish, as will fresh prepared food--the grocery store's answer to the demand for fast-food convenience. Fresh prepared food is already the single biggest item on America's grocery list. Average household spending on fresh prepared food from the supermarket deli climbed an enormous 53 percent between 2000 and 2006, after adjusting for inflation.
5. Restaurant meals Eating out is a necessity, not a luxury, for busy two-earner and single-parent families with children. Convenience drives them to restaurants and price steers them to fast-food. This is why fast-food restaurants will weather the downturn far better than full-service establishments. At McDonald's, same-store sales were up 8 percent in October. Meanwhile, full-service restaurants such as Bennigan's are filing for bankruptcy.
6. Gasoline Even before prices soared, gasoline was one of the biggest household expenses. Now that Americans are desperately seeking savings, gasoline is an obvious target. Memo to Detroit: Fuel efficiency will be the number-one priority for American car buyers from now on, regardless of the price of a gallon of gas.
7. Federal taxes Taxes are a perennial political issue because they are one of the biggest household expenses. Middle class tax cuts may be on the way, but do not expect this line item to fall much lower in the list.
8. Property taxes With home values declining and local governments strapped for cash, property taxes will become one of the most contentious local issues of the economic downturn.
9. Health insurance The average household devoted $1,465 out-of-pocket to health insurance in 2006, 27 percent more than in 2000 after adjusting for inflation. Most Americans will do just about anything to avoid losing their health insurance, which guarantees budget cutting elsewhere as the cost of health insurance rises.
10. Electricity The average household spent $1,266 on electricity in 2006, placing it 10th on the Great American Shopping List. Consumers are eager for ways to reduce this major expense. This desire will fuel green businesses that can help them save them money.
Every item at the top of The Great American Shopping List is a necessary expense. This is not good news for the hundreds of items further down the list--such as women's clothes in 16th place, television sets in 69th place, ice cream in 123rd place, whiskey in 285th place, or dating services in 359th place. With jobs disappearing, incomes falling, and consumers cutting back, necessities will command a growing share of household spending, leaving less for everything else.
Consumer spending is falling at a 3.1 percent annual rate, according to the latest statistics from the Bureau of Economic Analysis. Many of the nation's retailers reported double-digit declines in October sales, with the New York Times calling it a "collapse" in spending. Since consumer spending accounts for two-thirds of our economy, the belt tightening hurts all of us. To weather what looks like a prolonged economic downturn, businesses large and small need to brush up on consumer spending patterns. There is no better place to start than with The Great American Shopping List.
You can learn most of what you need to know about consumer spending by taking a look at the list--the inventory of every product and service purchased by American households, ranked by how much the average household spends on each item. The federal government collects the information by surveying thousands of households each month, asking them how much they spend on everything from cookies and crackers to video games and recreational vehicles. The Consumer Expenditure Survey data are used to create the all-important Consumer Price Index. Although the list is long, with more than 350 products and services, just 10 items consume more than half of the $50,000 spent by the average household each year. Here they are.
1. Social Security payroll taxes The bad news is that Social Security is our single biggest expense. The average household paid $3,811 into the Social Security trust fund, according to the 2006 Consumer Expenditure Survey. The good news is that this flow of funds reverses direction when you retire. If you don't believe it, join the crowd--only 31 percent of today's workers think Social Security will be their most important source of income in retirement, according to the Employee Benefit Research Institute. The rest will be surprised. The fact is, most American workers do not have a 401(k) or an IRA. Those who do have managed to save very little--and that was before the stock market crash. You don't have to be a number cruncher to realize that Social Security will be even more important tomorrow than it is today. Among people aged 65 or older, 68 percent receive at least half their income from Social Security.
2. Mortgage payments Hyperbole is the word that best describes the media narrative about the dire financial straits of the nation's homeowners. In fact, most homeowners have a manageable, fixed-rate mortgage. Most owe far less on their mortgage than their home is worth. Although there are plans afoot to help homeowners renegotiate their mortgage payment, few will need to take advantage of these efforts. Nevertheless, because mortgage payments are the second largest expense for the average household--an expense that is pretty much non-negotiable--household budget cutting will target items further down the list.
3. Car payments U.S. auto sales are plummeting, down 32 percent in October. Further declines are likely as households cut costs. The automotive industry is caught in a perfect storm--a severe recession, a paradigm shift in what consumers want (hint: better gas mileage), and a demographic transition as SUV-loving baby boomers morph into downsizing empty-nesters. The car payment is one item on which the average household can and is cutting back, forcing car manufacturers to beg the federal government for handouts to stay afloat.
4. Groceries Food prices have been rising at a pace not seen for decades, and forecasters say costs will continue to climb. Americans do not like paying higher prices for food, but they have little choice unless they want to plow up the backyard. Groceries are the fourth largest item in the Great American Shopping List. For grocery stores, the cutback in consumer spending could be good news, since a growing proportion of budget-minded shoppers are likely to head to a grocery store rather than a restaurant. In the grocery aisles, private labels will flourish, as will fresh prepared food--the grocery store's answer to the demand for fast-food convenience. Fresh prepared food is already the single biggest item on America's grocery list. Average household spending on fresh prepared food from the supermarket deli climbed an enormous 53 percent between 2000 and 2006, after adjusting for inflation.
5. Restaurant meals Eating out is a necessity, not a luxury, for busy two-earner and single-parent families with children. Convenience drives them to restaurants and price steers them to fast-food. This is why fast-food restaurants will weather the downturn far better than full-service establishments. At McDonald's, same-store sales were up 8 percent in October. Meanwhile, full-service restaurants such as Bennigan's are filing for bankruptcy.
6. Gasoline Even before prices soared, gasoline was one of the biggest household expenses. Now that Americans are desperately seeking savings, gasoline is an obvious target. Memo to Detroit: Fuel efficiency will be the number-one priority for American car buyers from now on, regardless of the price of a gallon of gas.
7. Federal taxes Taxes are a perennial political issue because they are one of the biggest household expenses. Middle class tax cuts may be on the way, but do not expect this line item to fall much lower in the list.
8. Property taxes With home values declining and local governments strapped for cash, property taxes will become one of the most contentious local issues of the economic downturn.
9. Health insurance The average household devoted $1,465 out-of-pocket to health insurance in 2006, 27 percent more than in 2000 after adjusting for inflation. Most Americans will do just about anything to avoid losing their health insurance, which guarantees budget cutting elsewhere as the cost of health insurance rises.
10. Electricity The average household spent $1,266 on electricity in 2006, placing it 10th on the Great American Shopping List. Consumers are eager for ways to reduce this major expense. This desire will fuel green businesses that can help them save them money.
Every item at the top of The Great American Shopping List is a necessary expense. This is not good news for the hundreds of items further down the list--such as women's clothes in 16th place, television sets in 69th place, ice cream in 123rd place, whiskey in 285th place, or dating services in 359th place. With jobs disappearing, incomes falling, and consumers cutting back, necessities will command a growing share of household spending, leaving less for everything else.
Monday, June 09, 2008
How Many Use Public Transportation?
Billions and billions. Public transit ridership reached an all-time high of 10.3 billion trips in 2007, according to the American Public Transportation Association. This is the highest level in 50 years, brags the APTA. Not to rain on their parade, but the U.S. population is also larger than ever, so it is only natural that the use of public transportation should be up. A more promising APTA statistic is this: the use of public transportation has grown 32 percent since 1995, more than double the 15 percent gain in population.
Still, the percentage of Americans who use public transportation is pitifully small. Overall, only 5 percent of the nation's workers use public transit to get to work, according to the 2006 American Community Survey. There is a good reason for this lack of use. Only 54 percent of households in the United States have public transportation available in their area, according to the American Community Survey. Narrow the focus to homeowners, and the numbers are even smaller. Only 47 percent of homeowners have access to public transportation. The figure is a higher 69 percent for renters, who are more likely to live in urban areas.
These numbers were collected a few years ago and are undoubtedly higher today. But not much higher. It takes years to get public transportation systems up and running. And we have another problem. The United States is the third largest country in the world. To make public transportation work here will require an enormous financial commitment at a time when the economy is already severely stressed. The way gasoline prices are rising, however, we may have no other choice.
Still, the percentage of Americans who use public transportation is pitifully small. Overall, only 5 percent of the nation's workers use public transit to get to work, according to the 2006 American Community Survey. There is a good reason for this lack of use. Only 54 percent of households in the United States have public transportation available in their area, according to the American Community Survey. Narrow the focus to homeowners, and the numbers are even smaller. Only 47 percent of homeowners have access to public transportation. The figure is a higher 69 percent for renters, who are more likely to live in urban areas.
These numbers were collected a few years ago and are undoubtedly higher today. But not much higher. It takes years to get public transportation systems up and running. And we have another problem. The United States is the third largest country in the world. To make public transportation work here will require an enormous financial commitment at a time when the economy is already severely stressed. The way gasoline prices are rising, however, we may have no other choice.
Trapped in Gasoline Ghettos
OK, this is bad. The rapid rise in the price of gas is turning the nation's far-flung rural and suburban areas into gasoline ghettos, locking millions of Americans into houses they cannot sell, far from their jobs, with little hope of escape.
Even before prices soared, gasoline consumed a large portion of the household budget. In 2006--the most recent year for which there is household spending data--gasoline ranked sixth among items on which the average household spends the most. Back then, the average price of a gallon of gas was less than $3.00. Those were the good old days. With gasoline now above $4.00 a gallon, it is likely the fourth most costly item in the household budget, behind only Social Security deductions, mortgage interest (or rent), and car payments.
This is worse than ouch. Gasoline is the blood supply of the sprawling American lifestyle. Here are the facts: most of us drive to work, and three out of four workers drive to work alone. The average commuter spends 25 minutes getting to his job. Many are in the car much longer. Twenty-one percent of workers live 20 or more miles from their place of work. Among the unlucky workers who live in newer homes (built in the past four years), an even larger 29 percent live at least 20 miles from their work, according to the American Housing Survey.
Those newer homes are the epicenter of the housing crisis because of their distance from jobs. According to an analysis (pdf download) by David Stiff, chief economist for Fiserv Lending Solutions, single-family home prices are falling the most in areas farthest from employment centers. "Because of sharp increases in gasoline prices, living closer to work has become an even more important consideration in the location decisions of homebuyers," says Stiff. He maps housing price changes from the price peak through the first half of 2007 in two metropolitan areas, showing how prices in Los Angeles and Boston have fallen the most in the outer rings. The future doesn't look bright either. "When combined with large inventories of unsold housing on the edges of urban areas, this shift in preferences will mean that prices for homes in outlying neighborhoods will continue their more rapid decline and will be slower to rebound when housing markets finally start to recover."
On top of this bad news, most of the millions living in gasoline ghettos have no alternative but to drive. Only 54 percent of households in the United States have access to public transportation, according to the American Housing Survey. Among homeowners, the figure is a smaller 47 percent. Among homeowners in newer houses--the houses in exurban rings--just 27 percent have public transportation in their area.
If we are lucky, the spike in gasoline prices is only a bubble, which will deflate once speculators withdraw from the market, or the summer driving season ends, or a new administration is in the White House. The bursting of an oil price bubble will give us time to prepare for the permanent era of expensive gasoline. We will have time to build more efficient vehicles, encourage people to live closer to job centers, and invest in public transportation. If we are not lucky, then we have run out of time, and we are about to feel the fury of all those trapped many miles from stores, schools, and jobs.
Even before prices soared, gasoline consumed a large portion of the household budget. In 2006--the most recent year for which there is household spending data--gasoline ranked sixth among items on which the average household spends the most. Back then, the average price of a gallon of gas was less than $3.00. Those were the good old days. With gasoline now above $4.00 a gallon, it is likely the fourth most costly item in the household budget, behind only Social Security deductions, mortgage interest (or rent), and car payments.
This is worse than ouch. Gasoline is the blood supply of the sprawling American lifestyle. Here are the facts: most of us drive to work, and three out of four workers drive to work alone. The average commuter spends 25 minutes getting to his job. Many are in the car much longer. Twenty-one percent of workers live 20 or more miles from their place of work. Among the unlucky workers who live in newer homes (built in the past four years), an even larger 29 percent live at least 20 miles from their work, according to the American Housing Survey.
Those newer homes are the epicenter of the housing crisis because of their distance from jobs. According to an analysis (pdf download) by David Stiff, chief economist for Fiserv Lending Solutions, single-family home prices are falling the most in areas farthest from employment centers. "Because of sharp increases in gasoline prices, living closer to work has become an even more important consideration in the location decisions of homebuyers," says Stiff. He maps housing price changes from the price peak through the first half of 2007 in two metropolitan areas, showing how prices in Los Angeles and Boston have fallen the most in the outer rings. The future doesn't look bright either. "When combined with large inventories of unsold housing on the edges of urban areas, this shift in preferences will mean that prices for homes in outlying neighborhoods will continue their more rapid decline and will be slower to rebound when housing markets finally start to recover."
On top of this bad news, most of the millions living in gasoline ghettos have no alternative but to drive. Only 54 percent of households in the United States have access to public transportation, according to the American Housing Survey. Among homeowners, the figure is a smaller 47 percent. Among homeowners in newer houses--the houses in exurban rings--just 27 percent have public transportation in their area.
If we are lucky, the spike in gasoline prices is only a bubble, which will deflate once speculators withdraw from the market, or the summer driving season ends, or a new administration is in the White House. The bursting of an oil price bubble will give us time to prepare for the permanent era of expensive gasoline. We will have time to build more efficient vehicles, encourage people to live closer to job centers, and invest in public transportation. If we are not lucky, then we have run out of time, and we are about to feel the fury of all those trapped many miles from stores, schools, and jobs.
Sunday, April 30, 2006
Gasoline Matters
Anyone who thinks the media are paying too much attention to every penny increase in the price of gasoline should take a refresher on the rank order of household expenditures. According to my analysis of the Bureau of Labor Statistics Consumer Expenditure Survey, the top six household expenditures in 2004 (the latest data available) are:
1. Food ($5,781)
2. Deductions for Social Security ($3,433)
3. Vehicles ($3,397)
4. Mortgage interest ($2,785)
5. Federal income taxes ($1,519)
6. Gasoline ($1,467)
Gasoline ranks a lofty 6th—and that was in 2004 when the average price of a gallon of gasoline was a bargain at $1.85. As of April 2006, a gallon of gasoline cost $2.91, a 57 percent increase since 2004. Ouch.
MAY 3 UPDATE: Those who grub around in government data like I do occasionally find a mistake—like the one I found in the tax payment lines in the detailed spending tables from the 2004 Consumer Expenditure Survey. The BLS has updated the tables, and the new ranking above shows the corrected data.
1. Food ($5,781)
2. Deductions for Social Security ($3,433)
3. Vehicles ($3,397)
4. Mortgage interest ($2,785)
5. Federal income taxes ($1,519)
6. Gasoline ($1,467)
Gasoline ranks a lofty 6th—and that was in 2004 when the average price of a gallon of gasoline was a bargain at $1.85. As of April 2006, a gallon of gasoline cost $2.91, a 57 percent increase since 2004. Ouch.
MAY 3 UPDATE: Those who grub around in government data like I do occasionally find a mistake—like the one I found in the tax payment lines in the detailed spending tables from the 2004 Consumer Expenditure Survey. The BLS has updated the tables, and the new ranking above shows the corrected data.
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