Study: Harlingen has third lowest cost of living in U.S.

HARLINGEN — Harlingen has the third lowest cost of living in the nation, according to a report by the Council for Community and Economic Research.

The city received a score of 83.5, compared to the national average of 100, on the cost-of-living index that was compiled by the council, which goes by the new name, C2ER.

The 2007 study analyzed 303 urban areas, according to a news release from the Harlingen Economic Development Corp.

Joplin, Mo., had the lowest cost of living with a score of 81 and New York City (Manhattan) had the highest at 212.8, the news release states.

Erol Yildirim, director of data products and economist for C2ER, said the study does not look at per capita income. It analyzes the cost of 60 items and compares those items, and their particular cost in a city, to the average cost of those items nationwide.

Participating cities are measured on components such as groceries, housing, utilities, transportation, health care and miscellaneous goods and services, Bill Martin, director of HEDC, said in the news release.

Some of the grocery items analyzed are: T-bone steak, ground beef, chunk light tuna, grated Parmesan cheese, bananas, white bread, fresh orange juice, coffee, corn flakes, dishwashing powder, frozen prepared food, soft drinks and potato chips.

Other costs analyzed include monthly apartment rent, mortgage rates, mortgage rate loans, utilities, telephone, gasoline, doctor visit costs and prescription costs. Some miscellaneous items are pizza, haircuts, dry cleaning, beauty care, appliance repair, newspaper subscriptions, movies, bowling, veterinary services and wine and beer.

Per capita income for the Brownsville-Harlingen area was $18,313 in 2006, according to a report by the U.S. Bureau of Economic Analysis. The McAllen-Edinburg-Mission area had a per capita income of $17,111 and Laredo had a per capita income of $19,598, according to that report.

Per capita income in the United States was $36,629 and in Texas $35,058 in 2006, according to U.S. Bureau of Economic Analysis.

“It’s normally true that, with a lower cost of living, there is a lower income,” Yildirim said Friday. “But sometimes it’s not the case. It depends on the job (that a person has in a certain area).”

Martin agreed, saying that part of the reason for the low cost of living is the low per capita income.

“Low cost of living is good, low income is bad,” Martin said Friday. “Everything is a function of supply and demand. So, if income went up, cost of living would go up as well.”

However, Martin said this ranking will be useful in attracting businesses to the city. He said it’s easier for companies to relocate and transfer employees to an area with a low cost of living.

“The cost of living is an important factor companies use in determining where to locate and expand,” Martin said. “This ranking will allow Harlingen to compare favorably to literally every community in the nation.”

C2ER, based in Arlington, Va., publishes the ACCR Cost of Living Index quarterly and measures regional differences in the cost of living of consumer goods and services, excluding taxes and non-consumer expenditures for households.

The membership organization was established in 1961 to promote excellence in community and economic research by working to improve data availability, enhance data quality and foster learning about regional economic analytic methods, according to the C2ER Web site.