Spinoff from my last thread about living in AK

[pittsflyer]

Groceries and utilities make up a significantly smaller percentage of most families outgo (unless they have a lot of kids but then that's a totally separate issue as having tons of kids in a high cost of living city is foolish). Also a big part of the reason for things being expensive up here are due to lease rates. Most businesses selling you something are doing so from leased property (unless its online). The proliferation of online business is helping consumers and putting the pressure on strip mall owners.


These indexes are not comparing apples to apples, you have to look at median income vs costs. Maybe these indexes take that into account but at the end of the day housing is going to be most families most significant expense and thus is worthy of being under a much more powerful microscope.

But saying hey we are slightly better than 2 of the worst states in the USA is not saying much.

Originally Posted by RayinAK

Is that what I implied?

a. I don't know how to make it more simple, other that to ask you again to read all the indexes for Alaska, and for CA. Some of the indexes are lower in CA (grocery index, utilities, transportation, health, and misc.) than in Alaska, and these keep the cost of living lower in CA, even if its housing index is higher.

b. In Alaska the grocery index is higher, and so utilities, transportation, health, and misc. You have to take into consideration all the indexes for each State, not just one or two of them.


ALASKA

[RayinAK]

Originally Posted by pittsflyer

Groceries and utilities make up a significantly smaller percentage of most families outgo (unless they have a lot of kids but then that's a totally separate issue as having tons of kids in a high cost of living city is foolish). Also a big part of the reason for things being expensive up here are due to lease rates. Most businesses selling you something are doing so from leased property (unless its online). The proliferation of online business is helping consumers and putting the pressure on strip mall owners.


These indexes are not comparing apples to apples, you have to look at median income vs costs. Maybe these indexes take that into account but at the end of the day housing is going to be most families most significant expense and thus is worthy of being under a much more powerful microscope.

But saying hey we are slightly better than 2 of the worst states in the USA is not saying much.

Well, I haven't said that "we are slightly better than other states." All I said is that you have to take all the indexes into consideration, not just one or two. The cost of living index is a composite of all the indexes in the tables as you can see below.

I don't make those numbers, but you can find all the data you want at this website (cost of living is around pages 38-44):
http://co.fairbanks.ak.us/communityplanning/crc/

[pittsflyer]

True, but its also not intellectually honest to say that an extra 50 cents for a tomatoe is the same thing as an extra hundred grand for a house. Or lease rates for buisnesses that are 500% more.


You have to consider why some of the other things are expensive as well? Why are the groceries so much more expensive, is it ALL shipping?

Originally Posted by RayinAK

Well, I haven't said that "we are slightly better than other states." All I said is that you have to take all the indexes into consideration, not just one or two. The cost of living index is a composite of all the indexes in the tables as you can see below.

I don't make those numbers, but you can find all the data you want at this website (cost of living is around pages 38-44):
http://co.fairbanks.ak.us/communityplanning/crc/

[RayinAK]

Originally Posted by pittsflyer

True, but its also not intellectually honest to say that an extra 50 cents for a tomatoe is the same thing as an extra hundred grand for a house. Or lease rates for buisnesses that are 500% more.


You have to consider why some of the other things are expensive as well? Why are the groceries so much more expensive, is it ALL shipping?

You are talking about two indexes (groceries, and housing) out of several. Again, and again, and again,, to arrive to the cost of living for a city, you have to gather all the different indexes into one group.

I don't know what to tell you. I don't create the databases with the indexes. How about if you talk to the people who create the cost of living indexes in Alaska, and change the rules? I have informed you by posting the facts, you decide.

[pittsflyer]

does the index take into account why something costs what it costs. I am saying that most of the expense from these other indexes are directly tied to outrageous commercial real estate lease rates or purchase prices.

Originally Posted by RayinAK

You are talking about two indexes (groceries, and housing) out of several. Again, and again, and again,, to arrive to the cost of living for a city, you have to gather all the different indexes into one group.

I don't know what to tell you. I don't create the databases with the indexes. How about if you talk to the people who create the cost of living indexes in Alaska, and change the rules? I have informed you by posting the facts, you decide.

[riceme]

Originally Posted by pittsflyer

does the index take into account why something costs what it costs. I am saying that most of the expense from these other indexes are directly tied to outrageous commercial real estate lease rates or purchase prices.

That is a question you would probably have to ask the statisticians who came up with those indices, not Ray from the Internet in AK. Ray from the Internet in AK would not know if they drilled down on their numbers.

And no, I cannot get you their email addresses.