Data Background FAQ #8

Frequently Asked Questions

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Data Background FAQ #8

Frequently Asked Questions

QUESTION:  How is the Renter's Cost of Living calculated in the Geographic List?

 

The Renter’s Cost of Living is a value that comes from ERI's Relocation Assessor.  It represents a comparison for a given area to the National Average given the mean salary for the selected occupation.  This field allows users to compare salary to cost of living given a common benchmark (National Average). 

 

The Renter’s Cost of Living value in the example below is for an Accountant in Seattle, WA ($129,016).  This is seen in the second line of the Geographic List in the Salary Assessor screenshot.  The first line is the salary for an Accountant at the United States Average.  The mean salary for the United States Average is the comparison point ($79,640).  This comparison point is used so all areas in the geographic list are compared against a common value.

 

The second screenshot below comes from the Relocation Assessor and shows how the actual comparison is made.  The base city is “United States Average,” and the destination city is “Seattle, Washington”.  The US national average salary for Accountant is entered as the earnings in the spreadsheet ($84,582).  This gives us a total cost of living in Seattle of $129,016 (compared to $84,582 at the national average).  This means that an Accountant earning the national average salary of $84,582 would have to earn $129,016 in Seattle to maintain the same standard of living as is found at the United States Average. 

 

Salary Assessor:

 

 

Relocation Assessor: