U.S. BUREAU OF LABOR STATISTICS
FEBRUARY 2013 • VOLUME 2 / NUMBER 5
P R I C E S  A N D  S P E N D I N G
Expenditures of urban and rural households in 2011
Author: William Hawk, Consumer Expenditure Program 
The United States is a nation of great diversity. Large houses and big red barns are found on the open farmlands of Related articlesthe Midwest while apartments and coffee shops occupy More BLS articles and information related to 
the corners of busy city streets. The varying landscapes shape consumer expenditures are available online at the 
the lives, customs, and spending habits of Americans. Using following links:
data from the Bureau of Labor Statistics Consumer Expenditure y “Consumer expenditures in different-
Survey (CE), this BEYOND THE NUMBERS article examines sized cities,” Monthly Labor Review, 
demographic characteristics and spending habits of urban and rural http://www.bls.gov/mlr/1989/12/ 
households in the United States in 2011. In total, approximately 92 art6full.pdf.
percent of households were urban and 8 percent were rural. 1 The y Consumer Expenditure Survey: Geography, 
following data highlight important differences between consumer http://www.bls.gov/cex/csxgeography.htm.
expenditures by rural and urban households in 2011: y “Expenditures of urban and rural consumers, 
1972-73 to 1985,” Monthly Labor Review, 
y Urban households spent $7,808 (18 percent) more than rural 
http://www.bls.gov/opub/mlr/1988/03/ 
households. 
rpt1full.pdf.
y Urban households received $15,779 (32 percent) more in 
yearly income than rural households.2
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 1 www.bls.gov 
BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
y Higher housing expenditures by urban consumers than their urban counterparts—49 percent compared with 
accounted for about two-thirds of the difference in 63 percent, respectively. (See chart 1.) The homeownership 
overall spending between urban and rural households. rate for rural households was 83 percent, significantly 
y Rural households spent 32 percent more on higher than the homeownership rate of 63 percent 
prescription and nonprescription drugs than urban for urban households. In addition, 49 percent of rural 
households. homeowners carried a mortgage, compared with 63 
y Urban households spent 28 percent more on food percent of urban homeowners who did. Rural households 
away from home and 5 percent less on food at home were more likely to own  or lease a vehicle (93 percent) 
than rural households. Overall, urban households 
than urban households (87 percent). And rural households 
spent 7 percent more on food than rural households. 
owned an average of 2.4 vehicles, compared with urban 
y Rural households spent more on gasoline and motor households’ average of 1.8 owned vehicles. 
oil, and spent a higher percentage of their car and 
truck budgets on used vehicles. In the transportation Urban households received $15,779 (32 percent) more 
spending category, urban households spent more on in yearly income than rural households received. Urban 
airline fares.
households received more income in the form of wages 
y Although rural and urban households spent about the and salaries, and interest, dividends, rental, and other 
same on entertainment, rural households spent more 
property income. Rural households received $2,076, or 
on pets, and urban households spent more on fees and 
admissions. 28 percent, more in Social Security, and in private and 
government retirement income. 
Demographics and income
The reference persons of rural households were older Spending
than those of urban households, with average ages of In 2011, urban households spent $50,348, which 
54 and 49, respectively.3 The reference persons of rural was 18 percent more than the $42,540 spent by rural 
households were less likely to have a college education households. Urban households had higher expenditures 
Chart 1
Selected demographic characteristics of urban and rural households, percent distribution, 2011
Percent Urban Rural
100
93
90 8783
80
70 63 63
60
49
50
40
30
20 13 13
10 7 4
0
Homeowner Black or African- Hispanic or Latino College education At least one vehicle 
American owned or leased
Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.
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BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
on food, housing, apparel, and education, while rural households were less likely to be homeowners than rural 
households spent more on transportation, health care, and households, they spent $1,946 more on owned homes per 
entertainment.4 (See chart 2.) year. (See table 1.)
There were differences in spending on other elements of 
Housing
the housing budget, too. Urban households spent more 
The principal differences in overall expenditures between 
on natural gas, $438 to $213, and water and other public 
rural and urban households are the amounts spent on 
services, $520 to $290, respectively, while rural households 
the chief elements of housing: mortgage interest and 
spent more than urban households on fuel oil and other 
rental payments. These expenditures are affected by many 
fuels, $423 to $133, respectively.
different variables, but can be understood fundamentally 
by supply and demand, and are often dependent on These data underscore the relative importance of 
location. Land is scarce in urban areas, and many people housing in the average U.S. household budget. Housing 
are vying for limited housing; therefore, rent is higher and expenditures accounted for 34.2 percent of all spending 
houses are more expensive. In many rural areas, land is in urban households and 28.5 percent of all spending 
plentiful, so prices tend to be lower. Urban households in rural households. As a point of comparison, urban 
estimated that the market value of their owned home households spent $17,226 on housing in 2011, more 
was $153,147, while rural households estimated that than they spent on clothing, transportation, health 
the market value of their owned home was $129,111, a care, and entertainment combined. Although their 
difference of $24,036. Urban renters reported paying $699, spending habits differ in many ways, both urban and 
on average, for monthly rent, while rural renters reported rural households spend the greatest share of household 
paying $354, on average. budgets on housing. 
Urban households were two times more likely to rent Food
than rural households, and urban households spent 
Rural households allocated a larger share of their budgets 
$2,404 more on rented dwellings per year. Though urban 
to food, but urban households spent almost $400 more 
Chart 2
Average annual expenditures of urban and rural households, 2011
Urban Rural
Other expenditures
Personal insurance and pensions
Education
Entertainment
Health care
Transportation
Apparel and services
Housing
Food away from home
Food at home
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
SUo.Su. BrcUeR:EUAU.S O. FB LuArBeOaRu S oTAf TLIaSbTIoCrS  S|t FaEtBisRtUicAs,R YC o20n1s3u mer Expenditure Survey. 3 www.bls.gov 
BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
Table 1
Average annual housing expenditures of urban and rural households, 2011 
Item Urban Rural
Housing $17,226 $12,115
Shelter $10,211 $5,529
Owned dwellings $6,308 $4,362
Mortgage interest and charges $3,282 $2,094
Property taxes $1,892 $1,316
Maintenance, repairs, insurance, other expenses    $1,135 $952
Rented dwellings $3,228 $824
Other lodging $675 $343
Utilities, fuels, and public services $3,723 $3,766
Natural gas $438 $213
Electricity $1,403 $1,648
Fuel oil and other fuels $133 $423
Telephone services $1,230 $1,192
Water and other public services $520 $290
Household operations $1,164 $660
Personal services $419 $165
Other household expenses $744 $496
Housekeeping supplies $609 $685
Laundry and cleaning supplies $142 $180
Other household products $336 $387
Postage and stationery $131 $118
Household furnishings and equipment $1,519 $1,475
Household textiles $109 $109
Furniture $366 $266
Floor coverings $19 $29
Major appliances $192 $216
Small appliances, miscellaneous housewares $89 $94
Miscellaneous household equipment $743 $761
Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.
on food in 2011. (See chart 2.) Urban households spent 28 restaurants, meals at carry outs, and food on out-of-town 
percent more on food away from home, but 5 percent less trips. Interestingly, based on percent reporting, both urban 
on food at home than rural households. These spending and rural households reported eating out at least once 
patterns provide insight into the preferences and habits a week with similar frequency, with 70 percent of urban 
of consumers. Urban households spent about $200 less households and 72 percent rural households eating out at 
than rural households on food at home, but spent about least once a week. But on a weekly basis, urban households 
$600 more on food away from home, including meals at spent more at restaurants.
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BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
Chart 3
Average annual vehicle expenditures of urban and rural households, 2011
$1,000 Urban Rural
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
New cars New trucks Used cars Used trucks Other vehicles
SSoouurrccee: : U.S.S. .B Buurreeaauu o off L Laaborr  SSttattiistiics,  Consumer Expendiitturree  SSuurrvveeyy..
Transportation Health Care
Whether traveling to work or school, to visit family and Rural households reported higher spending than 
friends, or to go on a vacation, Americans spend a major urban households on health care, $3,426 to $3,303. 
part of their household budgets on transportation. How (See chart 3.) Although the total amount spent by rural 
a household spends their money on travel is affected by households was only slightly more than urban households, 
different factors, such as whether they purchased a new rural households spent a larger portion of their total 
or used vehicle, how many vehicles they own, how much expenditures on health care. Further, rural households 
money they spend on gasoline, and how much money they reported spending 32 percent more on prescription and 
spend on airfare and other forms of transportation. Although nonprescription drugs, including vitamins, than urban 
transportation spending differs by less than $400 between households.5 
urban and rural households, the types of transportation 
expenditures vary greatly. Entertainment
Finally, a look at entertainment expenditures reveals 
In 2011, urban and rural households spent an average of 
more differences in the preferences of urban and rural 
$2,586 and $2,817, respectively, on new and used cars and 
households. Urban and rural households spent about 
trucks. (See chart 3.) Rural households spent 62 percent 
the same on entertainment. Rural households reported 
of their car and truck budget on used cars and trucks, 
spending $2,652 on entertainment in 2011, only $86 more 
whereas 50 percent of the urban household’s car and truck 
than urban households. (See chart 4.) However, a major 
budget was spent on used cars and trucks. 
difference in entertainment spending can be found in 
Rural households spent $3,115 on gasoline and motor oil, the fees and admissions category, with urban households 
compared with the $2,613 spent by urban households. But reporting expenditures of $621 per year, on average, and 
urban households spent more on other categories, such as rural households reporting expenditures of $299 in this 
airline fares ($360 compared with $137). category—a difference of $322. 
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BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
Chart 4
Average annual entertainment expenditures of urban and rural households, 2011
$1,000 Urban Rural
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
Fees and admissions Audio and visual Pets Toys, hobbies, and Other entertainment 
equipment and services playground equipment supplies, equipment, 
and services   
Source:: U..S..  Burreaau  off  Labor Statisticss,,  Consumerr  EExxppeenndditiuturere S Suurvrveeyy. .
Although urban households spent more on health club spending by rural and urban households. Although rural 
memberships, movie tickets, and admissions to sporting households spent more on pets, urban households outspent 
events, rural households spent 48 percent more on pets rural households in a variety of other entertainment 
than urban households.6 subcategories, including health club memberships, movie 
tickets, and admissions to sporting events. 
Summary
This BEYOND THE NUMBERS report was prepared by 
The data from the 2011 Consumer Expenditure Survey 
William Hawk, economist in the Office of Prices and Living 
reveal that urban households had a higher income and 
Conditions, Consumer Expenditure Survey division. Email: 
higher expenditures than rural households. The results 
Hawk.William@bls.gov. Telephone: 202-691-5131.
of the survey also illustrate the differences in spending 
between urban and rural households. This BEYOND THE Information in this article will be made available to 
NUMBERS article addresses possible explanations for sensory-impaired individuals upon request. Voice phone: 
these differences. In the case of housing, the concept of (202) 691-5200. Federal Relay Service: 1-800-877-8339. 
supply, demand, and location affects the housing costs for This article is in the public domain and may be reproduced 
rural and urban areas. Data on food expenditures show that without permission.
urban households spent more money on food at restaurants 
than rural households. Differences in transportation Suggested citation 
expenditures result from the variance in gasoline usage as William Hawk, “Expenditures of urban and rural households 
well as spending on airfare. The older age of the reference in 2011,” Beyond the Numbers: Prices and Spending, vol.2, 
person in rural households contributes to increased health no. 5 (U.S. Bureau of Labor Statistics, February 2013), 
http://www.bls.gov/opub/btn/volume-2/expenditures- 
care costs for rural households. Larger pet expenditures by 
of-urban-and-rural-households-in-2011.htm. 
rural households narrows the gap between entertainment 
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 6 www.bls.gov 
BEYOND THE NUMBERS P R I C E S  A N D  S P E N D I N G
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Visit our online archives to access past publications at
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Notes
1. The Consumer Expenditure Survey defines urban households as all households living inside a metropolitan statistical Area 
(MSA) plus households living in urban areas even if they are outside of an MSA. It is important to note that using this definition 
means some rural areas could be considered urban areas if they reside in the MSA. For more information please see Office of 
Management and Budget: Standards for Defining Metropolitan and Micropolitan Statistical Areas (http://www.whitehouse.gov/
sites/default/files/omb/fedreg/metroareas122700.pdf) and the U.S. Department of Health and Human Services publication 
How is rural defined? (http://www.hrsa.gov/healthit/toolbox/RuralHealthITtoolbox/Introduction/defined.html).
2. This figure represents income before taxes.
3. The reference person is the first household member mentioned by the respondent when asked to “start with the name of the 
person or one of the persons who owns or rents the home.”
4. For standard errors, please see the following table: http://www.bls.gov/cex/2011/stnderror/tenure.pdf.
5. Data from the Bureau of the Census show that the uninsured rate was 15.8 percent for people living inside MSAs and 15.4 
percent for people living outside MSAs (http://www.census.gov/prod/2012pubs/p60-243.pdf). 
6. Pet expenditures include: pet food; pet purchase, supplies, medicine; pet services; and vet services.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 7 www.bls.gov