How Does Cost of Living Vary From State to State?
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Gas and You
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A gallon of gas. A gallon of milk. A loaf of bread. Property taxes. These are all seemingly small factors that can add up and eat away at your salary. These costs can go up or down depending on where you live. Why should a gallon of milk cost more in Hawaii than it does in Missouri? This article will answer that question, as it explores how the cost of living varies from state to state.
Real Estate Location
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The cost of real estate can vary from state to state, even if the communities are similar. Say you wanted to buy a three-bedroom, two-bathroom, 1,500-square-foot house in North Charleston, South Carolina, in May 2008. You could expect to pay around $160,000. North Charleston is right next to a military base. The same size house in Fairfield, California, with a similar location (next to a military base) costs around $275,000. Why? It all has to do with the even bigger cities nearby. Just 15 miles away from North Charleston is Charleston, a place known for the myriad of Low Country tourist attractions and culture. Fairfield is an hour from San Francisco and 45 minutes from Sacramento, two of the largest cities in California. Fairfield is a hot commuter spot for many people, even though it is near a military installation where commodities tend to be cheaper. The two large cities nearby drive up demand, and therefore prices.
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Chamber of Commerce Survey
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Every quarter, the American Chamber of Commerce Research Association does a volunteer survey that compiles the average, everyday costs of living in different places around America. The survey asks people how much it costs to buy groceries, fill up gas tanks, pay taxes or spend money on entertainment, and measures the results from city to city. The organization found that gas in Honolulu, Hawaii, cost an average of $3.89 per regular octane gallon in October 2008. During the same month, gas in Springfield, Missouri, was $2.19 per gallon. The difference has to do with the locations of the cities. There are limited ways of getting gas to the island city, since it is so far away from the mainland, which drives up prices. Springfield can be reached by gas trucks easily because it is in the middle of the country, ultimately reducing the price.
Grapes From Cali to Jersey
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Food prices can also vary by state, depending on what you eat and where it came from. Northern California may have higher property costs compared to other places, but there are also many orchards, farms and wineries throughout the region. A pound of seedless California black grapes is less than a buck at most produce farms and may be a little more in the local supermarket. But in Newark, New Jersey, the same grapes in the supermarket could easily cost you $2.50. The cost of shipping grapes 2,000 miles from California to New Jersey adds to the price.
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