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QUESTION:  How is cost of living calculated for Geographic Assessor analyses?

 

The cost-of-living comparison is based upon the earnings level specified for the Base Location applied to a US National Average spending pattern. Cost-of-living components include rent, renter's insurance, utilities, combined effective federal/state/provincial/local income taxes, consumables, transportation and health care costs.  

 

For a detailed explanation of ERI cost-of-living methodology, please refer to the documentation for the Relocation Assessor. It is important to note that the original Two City Comparison table in the Geographic Assessor only reports summary cost-of-living differentials based on the rental housing market and benchmark assumptions for each earnings level; the updated Two City Comparison table in the enhanced Geographic Assessor includes cost-of-living data for both rental and home ownership scenarios (contact info.eri@erieri.com to subscribe to the enhanced Geographic Assessor).  The Relocation Assessor was specifically designed to build relocation packages and reports rental and ownership differentials. While you should use the Geographic Assessor to set wage and salary levels based on geographic differentials, the Relocation Assessor may be preferable for the purpose of administering management and executive level cost-of-living adjustments.