What Is Regional Price Parity (RPP)?
A Regional Price Parity measures the price level of goods and services in a geographic area relative to the national average. An RPP of 100 equals the national average. An RPP of 115 means prices are 15% above average. An RPP of 90 means prices are 10% below average.
RPPs are published by the Bureau of Economic Analysis (BEA) using data from the Bureau of Labor Statistics Consumer Price Index. They cover the overall price level as well as sub-indices for goods, services, and rents.
RPPs are the key data source behind cost-of-living comparisons between cities. When AffordMap says your salary has "purchasing power" of a certain amount, that calculation divides your take-home pay by the local RPP to show what your money actually buys compared to the national average.
The most expensive metros by RPP include San Francisco (127+), New York (122+), and Honolulu (119+). The least expensive include rural Mississippi (82), West Virginia (84), and Arkansas (86). The spread between the most and least expensive places in the U.S. is roughly 45 points, meaning the same dollar buys 55% more in the cheapest places than in the most expensive.
RPPs are published with a 1-2 year lag and are updated annually.
Example
If a registered nurse earns the BLS median of $186,610 in San Francisco (RPP 115.6), their purchasing power is approximately $161,413 at national-average prices ($186,610 ÷ 1.16). Source: BLS OES + BEA RPP.
Data source
Bureau of Economic Analysis, U.S. Department of Commerce. View source data (opens in new tab)
Related terms
See regional price parity (rpp) applied to real salary data
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