According to a recent analysis, Americans in certain cities are spending almost four times more of their income on groceries compared to others. The biggest impact is felt by households located mainly in the Midwest and South.
Detroit tops the list, with residents devoting approximately 3.8% of their income to groceries, followed by Cleveland and Birmingham, Alabama. In contrast, people in Fremont, California, spend less than 1% of their income on food, as noted in a new report by WalletHub.
“Places where grocery costs are high usually face steep prices for everyday items coupled with lower resident incomes,” explained Chip Lupo, an analyst at WalletHub.
Data from Data USA indicates that median household incomes in Detroit and Cleveland hover around $39,575 and $39,187, respectively—among the lowest in the nation.
Conversely, cities like San Francisco and San Jose, known for higher living expenses, provide residents with incomes that match these costs.
The top five cities where people spend the most on groceries include Detroit, Cleveland, Birmingham, Newark, New Jersey, and Toledo, Ohio. On the flip side, the cities with the least grocery expenditure are Fremont, San Jose, San Francisco, Irvine, California, and Gilbert, Arizona.
Federal data shows food prices have surged nearly 30% since before the pandemic, with a significant hike of up to 0.6% from July to August—one of the largest monthly surges in the last three years.
To compile the study, WalletHub looked at 26 common grocery items, including meat, dairy, fruits, vegetables, frozen foods, and cleaning products. Lupo pointed out that prices for items like chicken and eggs can vary greatly by region, with meat and dairy making up most pricing disparities nationwide.
Lupo emphasized that citizens in lower-income areas like Detroit and Cleveland face heightened pressure since even minor grocery expenses can take a substantial bite out of their limited budgets. Meanwhile, those in higher-income cities like San Francisco tend to cope better with rising prices.
Grocery prices seem to be climbing more rapidly in the Midwest and the South compared to coastal cities, he noted.
“Cities in the Midwest, like Detroit and Cleveland, alongside Southern cities, are experiencing some of the highest grocery costs relative to their incomes,” Lupo stated, linking inflation and lower wages to this issue, unlike in expensive coastal cities where rising incomes can soften the blow of price increases.
WalletHub’s analysis focuses on the 100 largest U.S. cities for which full grocery cost data is accessible, but a spokesperson from Detroit opted not to comment. Other reports suggest that despite grocery costs, both Detroit and Cleveland still remain among the most affordable cities in terms of overall cost of living.
While food prices are stable, inflation and supply chain issues continue to push costs up, Lupo noted. He suggested that shoppers should rely on budgeting, look for discounts, and practice smart shopping to manage rising expenses.
WalletHub’s experts also recommended adhering to a shopping list, joining loyalty programs, purchasing generic brands, and comparing unit prices to avoid overspending.
Andrew Bernstein, an associate professor at Lynn University, highlighted the importance of meal planning, shopping with a list, comparing prices, choosing store brands, and establishing a solid grocery budget as keys to saving money.
Jeff Shockley, a Virginia Commonwealth University professor, added that buying in bulk at warehouse clubs and leveraging discounts and loyalty programs can help reduce costs. He also advised against impulse buying.
Dana DiPrima, founder of the For Farmers Movement, emphasized the value of shopping locally and seasonally, properly storing staples, and taking advantage of deals on ‘ugly’ produce. She mentioned, “As winter approaches, it’s an excellent time to stock up on long-lasting staples like potatoes and carrots.”
