Inflation has gripped the United States as prices have risen at supermarkets, restaurants and gas stations.
But fascinating new data reveals just how much price changes vary from state to state and even city to city.
Tampa, Florida, had the lowest inflation rate among a total of 23 metropolitan locations across the United States, according to data from the Consumer’s price index.
In the 12 months through May, inflation hit 1.8 percent in the Tampa-St. Petersburg-Clearwater region of the Sunshine State. By comparison, the national inflation rate was around 3 percent in June.
Meanwhile, the “urban Hawaii” area, centered on Honolulu, another picturesque beach location, ranked first for the highest inflation rates in the country, at 5.2 percent in May.
Inflation rates in the past two years have only reached 1.8 percent in the Tampa-St. Petersburg-Clearwater region in the Sunshine State. (Pictured: View of Tampa suburbs)
The “Urban Hawaii” area, anchored by Honolulu (another picturesque beach location), ranked first for the highest inflation rates in the country, after rates soared 5.2 percent from 2022. (pictured: hotels and resorts around the beach in Honolulu)
Stable inflation rates in the city of Florida are attributed to the great economic development and residential construction in the region.
Due to the booming real estate market in Tampa, home costs have stabilized and become affordable for buyers.
During the COVID pandemic, many remote workers and baby boomers fled their hectic lives and moved to the Florida coastal city, CNN Business reported.
They did it to enjoy the warmer weather and lower cost of living. From 2021 to 2022, Florida as a whole was crowned the fastest-growing state in the nation, according to Census data.
Brian Adcock, president of the Tampa Bay Chamber, explained why Tampa has seen such a decline, especially compared to other major cities in the state.
“Tampa is a rapidly growing area and there is significant construction going on because we have a lot of available land in surrounding areas like Hillsborough County and Pasco County,” he said.
“There are many more neighborhoods now and that is the key difference with Miami.”
This hasn’t always been the case in the Tampa metropolitan area, as inflation rates hit an all-time high of 11.3 percent in 2022.
Red fin He reported that the average rent price in the city has decreased by six percent in a year since June.
In addition to affordable housing, Tampa is also experiencing “an incredible metamorphosis” due to development throughout the area.
Stable inflation rates in the Florida city are attributed to the great economic development and residential construction in the region. (Pictured: Construction crew works on Tower II of The Ritz-Carlton Residences on July 17)
“We are fortunate to have incredible developers in our region, not just individuals who come in, build skyscrapers and then leave,” said Tampa Mayor Jane Castor. in early July.
“We have people who are committed to our community.”
In comparison, prices in Hawaii are rising much more dramatically.
Many have moved to the small state in search of a tropical lifestyle, but they also encounter the expenses that come with it.
A huge factor that plays a major role in the cost of living in Hawaii is based on the location of the state, which is just over 10,900 square miles long.
With the difficulty of moving across the Pacific Ocean, transporting materials and goods is very expensive.
It has also become difficult for the pace of housing construction to keep pace with the influx of residents, not to mention the numerous tourists who travel there.
In May, the housing index (which refers to housing costs) for the “urban Hawaii area” reached an annual rate of 10.7 percent. That’s more than double the national rate of 5.2 percent recorded in June.
“It’s well known across the state that we have an affordability crisis, a housing crisis,” Carl Bonham, an economics professor at the University of Hawaii, told CNN.
As for the state’s real estate market, it has become difficult for the housing rate to keep up with the influx of residents, not to mention the numerous tourists who travel there. (pictured: a neighborhood of single-family homes in Honolulu)
“We simply don’t build enough homes, and some of them are bought by non-residents and used as second homes, which makes the situation worse.”
Because of the housing problem, many families have had to settle for multigenerational living, according to Roseann Freitas, executive director of the Building Industry Association of Hawaii.
Freitas added that the Lahaina wildfires that consumed the state in August 2023 also “had a huge impact on the rental market” in the area, which already had a shortfall of about 10,000 homes before the devastation.
In addition to Tampa, other major cities including Houston, Minneapolis and Denver have seen inflation rates decline due to an increase in housing construction, economists said.
In addition to the Honolulu area, Dallas, New York, Boston and Riverside have seen large increases in inflation rates between 2022 and 2024, according to the Bureau of Labor Statistics.
Houston, Texas, came in after Tampa as the second place where prices are cooling the fastest.
Prices in Houston increased 2.1 percent from 2022 to 2024.
Dallas, Texas, ranked second after Hawaii as the place where prices are rising.
Within two years, the interest rate in Dallas reached five percent.
