Florida’s pandemic popularity has quickly made it more expensive
Ultimately, it doesn’t matter where you live; They’re probably struggling to keep up with skyrocketing inflation, which hit a 40-year high last year. But in some places inflation is actually rising faster than in others.
Personal finance website WalletHub examined the consumer price index (CPI) from the Bureau of Labor Statistics’ most recent report in 23 major U.S. metropolitan areas and compared the CPI to where it was two months ago and one year ago.
It turns out that neither New York City nor San Francisco made the top five, despite all the fanfare about how unaffordable it was to live in them. That honor went to Miami, where inflation rose 9.9% year over year. For comparison, the NYC metro area ranked 10th with a 6.3% increase, while San Francisco was 18th with a 4.9% increase. Headline inflation was up 6.5% year-on-year in December.
Here are the top 10 metro areas where inflation has risen the fastest:
- Miami-Ft. Lauderdale-West Palm Beach, Florida: 9.9%
- Tampa-St. Petersburg-Clearwater, Florida: 9.6%
- Dallas-Ft. Worth-Arlington, Tx.: 8.4%
- Riverside-San Bernardino-Ontario, Approx.: 7.5%
- Seattle-Tacoma-Bellevue, WA: 8.4%
- Phoenix-Mesa-Scottsdale, Az.: 9.5%
- Boston-Cambridge-Newton, Ma.: 7%
- Denver-Aurora-Lakewood, Co.: 6.9%
- Atlanta-Sandy Springs-Roswell, Georgia: 8.1%
- New York-Newark-Jersey City, NY-NJ: 6.3%
Don’t let Miami’s number one spot fool you. After Travel + Leisure, it’s still one of the best places to live in Florida. So is Tampa, which ranks second on the list.
Florida snagging the top two spots on the list may not be mere coincidence. Many people moved to the Sunshine State during the pandemic in search of better weather, a tax haven, and more space. More high earners moved to Florida during the pandemic than any other U.S. state, nearly four times as many who moved to Texas, the second most popular destination.
In fact, half of the top ten states are in the Sun Belt – mostly where people with the means have ventured out during lockdown, many of whom have made the move permanent. But as more remote workers flocked to these regions, the cost of living that initially lured them skyrocketed. It only makes sense that inflation would rise fastest in the cities where demand is greatest.
Regardless of whether your city made the cut, you’re no doubt noticing that consumer prices are trending upwards — especially if you’re quickly going through egg cartons. Unfortunately, there is no magic way to reduce substantial costs. However, there are small changes you can make to reduce the overall damage.
The most important step in getting a handle on spending is tracking every dollar, said Lisa Fischer, chief lending and growth officer at financial consultancy Mission Lane wealth. “Write everything down. Whether you’re doodling in a notebook or typing out an organized list, a detailed record helps you visualize your cash flow and save when needed.”
Other top tips that could double as New Year’s resolutions include making a plan to ask for a raise, replacing restaurant eating with meal prepping, exploring investment strategies, and trying some free days.
Staying nimble during such intense inflation can feel like an insurmountable task. But for inspiration, look no further than Cardi B, who put it bluntly, “You’re going to go broke if you don’t start budgeting.”
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