(Center Square) The dollar’s purchasing power in Iowa is $1.11 based on the regional cost of items such as housing, groceries, and services in 2019, according to a new analysis from the website 24/7 Wall St.
Goods and services in states where household incomes are below the U.S. average tend to be less expensive than in states with household incomes above the national median of $59,729, the study concludes.
Each state’s dollar value was estimated by dividing 100 (the dollar’s base value) by estimates for regional price parity, based on the Bureau of Economic Analysis’ 2019 data, the most recent numbers available.
Iowa has a 2020 personal income per capita of $55,218. That figure was compared to the state’s dollar value and price parity number to calculate the effective personal income of residents on average – $61,292.
The median home value in the state, $158,900, reflects the 2019 U.S. Census Bureau’s American Consumer Survey.
Iowa’s purchasing power matches two of its neighbors, Missouri and Nebraska. Its purchasing power is greater than Illinois at $1.03, Minnesota at $1.02, and Wisconsin at $1.08. South Dakota’s purchasing power was slightly higher at $1.12 per dollar earned.