Portland Among Worst Cities for Purchasing Power

Monday, September 15, 2014

Shelby Sebens, GoLocalPDX Reporter

Portland

Portland: One of the country's worst cities for purchasing power

Portland is among the worst cities in the country when it comes to your paycheck’s purchasing power, a report has revealed.

The Rose City ranked 42nd among the 51 biggest U.S. cities, close to the rear of the pack when comparing for average annual wage, adjusted for cost of living.

Seattle, however, made it into the top 10 of cities with the most effective pay, according to the study by Joel Kotkin of the NewGeography.com, an analytical site dealing with places to live and work, and Mark Schill of Praxis Strategy Group.

SLIDESHOW: The Top 10 Cities Where Your Paycheck Stretches Furthest

“Wages are just one part of the equation. High prices in those East and West Coast cities mean the fat paychecks aren’t necessarily getting the locals ahead,” Kotkin says. “When cost of living is factored in, most of the places that boast the highest effective pay turn out to be in the less celebrated and less expensive middle part of the country.”

The Portland-Vancouver-Hillsboro area ranked 21st when it came to paychecks, with an average wage of $56,134. When adjusted for cost of living, however, the rank significantly dropped and the average wage became $49,414, bringing it down to 42nd place, according to Kotkin.

Houston came in at first place on the list, mostly because of its relatively high wages and low cost of living. This latter takes into account consumer prices, services, utilities, transportation and housing prices, says Kotkin.

Riverside-San Bernardino-Ontario, Calif., came in last before and after adjusting for inflation, with an average wage of $41,000 after adjusting for cost of living. Indianapolis and Sacramento were not ranked because of lack of data.

Related Slideshow: The Top Ten Cities Where Your Paycheck Stretches Farthest

Want more bang for your buck? Here are the top 10 cities where you can get the most out of your paycheck.

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10. Cincinnati

Cincinnati-Middletown, OH-KY-IN: The Midwest fairs well on the list of how well workers can stretch their paychecks, thanks to a lower cost of living. Cincinnati jumped from $54,683 to $59,828. (Photo credit: Wing)

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9. Seattle

Seattle-Tacoma-Bellevue, Wash.: Even before being adjusted for cost of living Seattle ranked in the top 10 for best wages. The rank went down slightly though, from $67,225 to $60,237 when adjusted for housing costs.

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8. Atlanta

Atlanta-Sandy Springs-Marietta, GA: When it comes to the highest effect pay in cities across the country, Atlanta ranks in the top ten. Salaries jump from $58,836 to $60,844 when adjusted for cost of living.

(Photo Credit: Nrbelex via Compfight cc)

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7. Charlotte

Charlotte-Gastonia-Rock Hill, NC-SC: The rank for the home of the Bobcats raised significantly from 20th to seventh when adjusted for cost of living. The salary went up from $57,506 to $61,636.

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6. Memphis

Memphis, Tenn.: This southern city came in sixth with an average annual salary going up from $53,069 to $61,780. (

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5. Austin

Austin-Round Rock-San Marcos, Texas: Workers in Austin will be pleased to find their paychecks stretching farther than most with a jump from 58,103 to $62,679. (Photo credit) (Photo credit: LoneStarMike)

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4. Dallas

Dallas-Fort Worth-Arlington, Texas: Cities in Texas faired well when it comes to how far your money goes. When adjusted for cost of living, the average annual salary jumped from $60,478 to $62,867.

(Photo Credit: zizzybaloobah via Compfight cc)

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3. Detroit

Detroit-Warren-Livonia, Mich.: Detroit might be a surprising one to top the list but the annual salary jumped up from $60,503 to $64,571 when housing prices were considered. Kotkin says the high wages paid by the uptick in the auto industry and the low cost of living bumped this otherwise struggling city to the top. “This longtime sad sack region has reason to feel hopeful,” he says.

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2. San Jose

San Jose-Sunnyvale-Santa Clara, Calif.: Silicon Valley kept it in the top 10 despite having the least affordable housing on the list. When the pricy housing costs were added in, the average salary plummeted from $107,515 to $71,534. (Photo credit: EugeneZelenko, CC)

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1. Houston

Houston-Sugar Land-Baytown, Texas: Houston ranked number one after its annual average salary actually went up when adjusting for cost of living, from $67,279 to $75,256.

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