Americans in some cities are spending nearly four times more of their income on groceries than others, a new analysis shows, with the hardest-hit households mainly in the Midwest and South.
Residents of Detroit spend the largest share of their income on groceries — nearly 3.8% — followed closely by Cleveland and Birmingham, Alabama, according to a new report from personal finance website WalletHub. At the other end of the spectrum, residents in Fremont, California, spend less than 1%.
“In the cities where people spend the most money on groceries, residents often have low incomes on top of seeing high sticker prices on common grocery items,” said Chip Lupo, WalletHub writer and analyst.
Detroit and Cleveland have some of the lowest median household incomes in the country — $39,575 and $39,187, respectively, according to Data USA.
Cities with higher living costs such as San Francisco and San Jose, California, meanwhile, typically have higher incomes that balance out expenses.
The top five cities where residents spend the most on groceries are Detroit; Cleveland; Birmingham, Alabama; Newark, New Jersey; and Toledo, Ohio.
The five cities where residents spend the least are Fremont, California; San Jose, California; San Francisco; Irvine, California; and Gilbert, Arizona.
Grocery prices have climbed nearly 30% since before the COVID pandemic, according to federal data, and rose by as much as 0.6% between July and August, marking one of the largest monthly increases in the past three years.
To conduct its survey, WalletHub selected 26 grocery items covering a broad range of common household items, including meat, dairy, vegetables and fruits, frozen food and cleaning products, Lupo told Fox News Digital.
Meat and dairy prices drive most of the grocery cost gaps nationwide, with items like chicken, milk and eggs varying sharply by region, Lupo said. Produce tends to fluctuate less, he said.
Those in lower-income cities like Detroit and Cleveland, said Lupo, feel a bigger squeeze because even modest grocery bills eat up a larger share of limited paychecks, while people in high-income cities such as San Francisco and Washington, D.C., can better absorb inflated prices.
Lupo said grocery prices have also risen more sharply in the Midwest and parts of the South than in many coastal cities.
“Midwest cities like Detroit and Cleveland and southern cities such as Birmingham show some of the highest grocery costs relative to income,” he said, adding that inflation and lower local wages play a big role. In high-cost coastal cities, higher incomes tend to offset the inflated prices.
He noted that the WalletHub analysis focused on 100 of the largest U.S. cities for which complete grocery cost data was available.
A spokesperson for Detroit declined to comment. Other recent reports have found that Detroit and Cleveland still rank among the most affordable cities in the U.S. based on overall living costs.
Grocery prices have stabilized but at elevated levels, driven by inflation and supply constraints, Lupo said.
“Shoppers will need to rely on budgeting, discounts and smart buying to manage the increased costs,” he said.
WalletHub’s experts also recommend sticking to a shopping list, joining store loyalty programs, buying generic products and comparing unit prices to avoid overspending.
Andrew Burnstine, an associate professor at Lynn University in Florida, told WalletHub the key to saving is planning meals, shopping with a list, comparing unit prices, choosing store brands and setting a firm grocery budget.
Jeff Shockley, a professor at Virginia Commonwealth University, added that shoppers can cut costs by buying in bulk at warehouse clubs like Costco, taking advantage of discounts and loyalty programs and steering clear of impulse purchases.
Dana DiPrima, the New York-based founder of the nonprofit For Farmers Movement, which supports American farmers, also recommended shopping seasonally and locally, buying and storing staples properly, sharing bulk purchases, seeking end-of-day or “ugly” produce deals — and using every part of the food, such as beet greens and carrot tops.
“At this time of year, you can also stock up on staples and things that you need all winter that store really well, like potatoes, carrots, onions and other roots,” DiPrima told Fox News Digital.
