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INDICATOR |
Santa Monica Cost of Living Index as a percentage of
Average Santa Monica Household Income |
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STATUS |
Fair |
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TREND |
Worsening |
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DESCRIPTION |
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The city measures the Santa Monica Cost of
Living Index as a percentage of average
household income. It measures differences in the
price of a defined bundle of goods and services
over time. The defined bundle of consumer goods
usually includes food, clothing, and
transportation.
The ratio examines the average cost of living as
a proportion of the average household income,
both adjusted for inflation. There is no target
for this indicator, but naturally, it is
desirable for the COL to be a stable or
declining part of income, rather than an
increasing one.
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PERFORMANCE SUMMARY |
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Both average household income and cost of living
are increasing, but the cost of living is
increasing at a slightly higher rate. The
average household income in 1990 was $69,627 and
the average cost of living was $25,206. In 2000,
the average household income has risen to
$79,890 and the average cost of living has grown
at a bit more heightened pace to reach $31,820.
In 1990 the cost of living represented 36% of
household income. It has risen almost constantly
since then to a high of 40% in 2000.
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ANALYSIS |
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The City has a goal to nurture a diverse,
stable, local economy that supports the basic
needs of all segments of the community. The cost
of living index is one tool used to monitor the
local economy. The cost of living index is a
useful way to consider changes in economic
prosperity in the community due in part to
changes in factors beyond the control of
individual households such as inflation. The
City is tracking this indicator because the
relative purchasing power of the City’s
households has an impact on the local economy
and because the larger economic implications of
a high cost of living impacts individual
residents and the city as a whole. |
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SUPPORTING INFORMATION |
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The Santa Monica Cost of Living Index (CPI) is
the Los Angeles County CPI multiplied by 1.46 to
reflect the increased cost of housing in the
Santa Monica.
Average household income is US Census
inflation-adjusted income to reflect 2000
constant dollars.
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DATA SOURCES |
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View source material in Excel:
E4_LivingCost.xls.
Email contact for data source inquires. |
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PRINTING TIPS
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Printing tips for MS Internet Explorer |
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LAST UPDATED
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January 2006 |
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CITATION |
www.smepd.org/scpr |
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