Although a $100 bill may appear to be worth the same across the United States, a fascinating new report shows that is far from the case.
Huge differences in the cost of living (from food to housing to gas) across the country mean that a so-called “Benjamin” will buy much less in some areas than in others.
In made, HeThe purchasing power of $100 can vary by as much as 26 percent between states, according to the study. It goes further in Arkansas and buys less in California.
The report of GOBanking Fees used a government index that compares the costs of goods and services among each of the 50 states.
Variable prices mean that Americans might live comfortably in one state on a given wage, but struggle to make ends meet on the same salary in another, he found.
For example, median household incomes in Michigan, Florida, Kansas and South Dakota are relatively similar: around $68,000.
However, your dollar buys a lot more in Michigan than in a more expensive state like Florida, where property costs nearly twice as much and living expenses are much higher.
The actual value of $100 is $106.60 in Michigan, but substantially less, $97.90, in Florida.
The study also analyzed data from the U.S. Bureau of Economic Affairs, the Bureau of Labor Statistics and real estate marketer Zillow to determine how much $100 goes for in different states.
California has the lowest purchasing power of all states, where the real value of $100 is $87.50.
The typical home value in the Golden State is much higher than the national average, $769,579, and average annual living expenses are $57,195.
Other states where money has less purchasing power include Hawaii, Washington and Massachusetts, where the cost of living is high and property is expensive.
Meanwhile, Arkansas has the highest purchasing power, where the actual value of a $100 bill is $113.40, according to GOBankingRates.
Iowa, North Dakota and Oklahoma are also among the states where your money goes the furthest.
Nationwide, the purchasing power of a $100 bill is $103, according to the study, which used data as of February 2024.
The cost of many basic goods has been rising in recent years, affecting households across the United States.
While inflation has fallen well below its 40-year high of 9.1 percent as of June 2022, it is still above the Federal Reserve’s 2 percent target.
The purchasing power of $100 can vary by as much as 26 percent between states, the study found.
The cost of many basic goods has risen in recent years, affecting households across the United States.
Mortgage rates at multi-decade highs and record home prices mean the average home loan payment this year is double what it was in 2000.
The annual inflation rate was 2.9 percent in the latest data for July, down from 3 percent in June.
But food prices have risen 20 percent in the past five years, according to data from the Labor Department.
Mortgage rates at multi-decade highs and record home prices mean the average home loan payment this year is also double what it was in 2000.
But mortgage rates have been falling in recent weeks, which could provide some respite for potential homebuyers.
The average 30-year fixed mortgage rate has fallen to 6.35 percent, according to the latest data from Sept. 5.