Consumer Expenditures for the Chicago Area: 2010-2011

Consumer units¹ in the Chicago-Gary-Kenosha, Ill.-Ind.-Wis., metropolitan area spent an average of $57,579 per year in 2010-2011, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that this figure was almost 18 percent higher than the $48,926 average expenditure level for a typical household in the United States. Although households in the Chicago area spent more than the U.S. average, they allocated their dollars similarly among most of the eight major categories with three differing significantly from the U.S. average. For example, the share of expenditures for cash contributions, which comprised 2.8 percent of a typical household’s budget in the Chicago area, was significantly less than the nationwide average of 3.4 percent. (See chart 1 and table 1.)

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Housing in the Chicago metropolitan area averaged $20,520 annually and was the largest expenditure category, accounting for 35.6 percent of a Chicago area household’s total budget. (See tables 1 and 2.) This share was significantly above the 34.1-percent national average. Overall, 9 of the 18 published metropolitan areas had expenditure shares for housing significantly above the U.S. average. Four areas had shares for housing that were significantly below the U.S. average. (See table 3 and chart 2.) Housing expenditures among the 18 areas ranged from 32.0 percent in Cleveland to 41.5 percent in Miami. (See table 3.)

The majority of housing expenditures in Chicago went toward shelter, 63.7 percent, which includes mortgage interest, property taxes, repairs, and rent, among other items; nationwide, 58.8 percent of the housing budget was allocated for shelter. (See table A.) Utilities, fuels, and public services expenses accounted for 19.4 percent of the housing budget locally; nationally, this category made up 22.1 percent. The rate of homeownership in Chicago was 69 percent, whereas the U.S. average was 65 percent.

At 14.5 percent of the total budget, transportation was the second-largest expenditure category in the Chicago area; this was significantly lower than the national average of 16.3 percent. Among the 18 metropolitan areas nationwide, 6 had below average transportation expenditure shares. (See table 3 and chart 3.)

Of the $8,342 in annual expenditures for transportation in Chicago, 89.7 percent was spent buying and maintaining private vehicles compared to the national average of 93.7 percent. The remaining 10.3 percent of a Chicago household’s transportation budget was spent on public transit, which includes fares for taxis, buses, trains, and planes. Nationally, 6.3 percent of transportation expenditures went to public transit.(See table B.) The average number of vehicles per household in Chicago was 1.8 while the national average was 1.9.

The portion of a Chicago consumer unit’s budget spent on food, 12.4 percent, was not significantly different from the 12.9-percent U.S. average. Among the 18 metropolitan areas, 12 had food expenditure shares that were not significantly different from the nationwide average. (See table 3.)

Households in Chicago spent $4,276, or 59.7 percent, of their food dollars on food at home and the remaining 40.3 percent on food away from home, such as restaurant meals, carry-out, board at school, and catered affairs. In comparison, the typical U.S. household spent 59.3 percent of its food budget on food at home and 40.7 percent on food away from home.

As noted, Chicago is 1 of 18 metropolitan areas nationwide for which Consumer Expenditure Survey (CE) data are available. We encourage users interested in learning more about the CE to contact the Midwest Information Office at (312) 353-1880.

Metropolitan area CE data and that for the four geographic regions of the United States are available on our Web site at http://www.bls.gov/cex/tables.htm. Metropolitan area CE news releases are available at http://www.bls.gov/regions/consumerspending.htm.

Additional Information

Data contained in this report are from the Consumer Expenditure Survey, which is collected on an ongoing basis by the U.S. Census Bureau for the Bureau of Labor Statistics (BLS). The CE data were averaged over a two-year period, 2010 and 2011 and are available for the nation, the 4 geographic regions of the country, and 18 metropolitan areas. The metropolitan area discussed in this release is Chicago-Gary-Kenosha, Ill.-Ind.-Wis., which is comprised of Cook, DeKalb, Du Page, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties in Illinois; Lake, Newton, and Porter Counties in Indiana; and Kenosha County in Wisconsin.

The survey consists of two components, a diary or recordkeeping survey, and an interview survey. The integrated data from the BLS Diary and Interview Surveys provide a complete accounting of consumer expenditures and income, which neither survey component alone is designed to do. Due to changes in the survey sample frame, metropolitan area data in this release are not directly comparable to those prior to 1996.

A consumer unit is defined as members of a household related by blood, marriage, adoption, or other legal arrangement; a single person living alone or sharing a household with others but who is financially independent; or two or more persons living together who share responsibility for at least 2 out of 3 major types of expenses – food, housing, and other expenses. The terms household or consumer unit are used interchangeably for convenience.

CE metropolitan area estimates are not comparative cost of living surveys, as neither the quantity nor the quality of goods and services has been held constant among areas. Differences may result from variations in demographic characteristics such as consumer unit size, age, preferences, income levels, etc. However, expenditure shares, or the percentage of a consumer unit’s budget spent on a particular category, can be used to compare spending patterns across areas. Sample sizes for the metropolitan areas are much smaller than for the nation, so the U.S. estimates and year-to-year changes are more reliable than those for the metropolitan areas. Users should also keep in mind that prices for many goods and services have changed since the survey was conducted.

Expenditure shares for housing and transportation that are higher or lower than the national average, after testing for significance at the 95-percent confidence interval, are also identified in charts 2 and 3 for the 18 metropolitan areas surveyed.

A value that is statistically different from another does not necessarily mean that the difference has economic or practical significance. Statistical significance is concerned with our ability to make confident statements about a universe based on a sample. It is entirely possible that a large difference between two values is not significantly different statistically, while a small difference is, since both the size and heterogeneity of the sample affect the relative error of the data being tested.

For additional technical documentation and related information, see http://www.bls.gov/opub/hom/homch16.htm.