PRICES AND SPENDING

U.S. BUREAU OF LABOR STATISTICS

FEBRUARY 2013 • VOLUME 2/ NUMBER 5

U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 1 www.bls.gov

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 

the Midwest while apartments and coffee shops occupy 

the corners of busy city streets. The varying landscapes shape 

the lives, customs, and spending habits of Americans. Using 

data from the Bureau of Labor Statistics Consumer Expenditure 

Survey (CE), this BEYOND THE NUMBERS article examines 

demographic characteristics and spending habits of urban and rural 

households in the United States in 2011. In total, approximately 92 

percent of households were urban and 8 percent were rural. 1 The 

following data highlight important differences between consumer 

expenditures by rural and urban households in 2011:

y Urban households spent $7,808 (18 percent) more than rural 

households. 

y Urban households received $15,779 (32 percent) more in 

yearly income than rural households.2

Related articles

More BLS articles and information related to 

consumer expenditures are available online at the 

following links:

y “Consumer expenditures in differentsized cities,” Monthly Labor Review, 

http://www.bls.gov/mlr/1989/12/

art6full.pdf.

y Consumer Expenditure Survey: Geography, 

http://www.bls.gov/cex/csxgeography.htm.

y “Expenditures of urban and rural consumers, 

1972-73 to 1985,” Monthly Labor Review, 

http://www.bls.gov/opub/mlr/1988/03/

rpt1full.pdf.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 2 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

y Higher housing expenditures by urban consumers 

accounted for about two-thirds of the difference in 

overall spending between urban and rural households. 

y Rural households spent 32 percent more on 

prescription and nonprescription drugs than urban 

households.

y Urban households spent 28 percent more on food 

away from home and 5 percent less on food at home 

than rural households. Overall, urban households 

spent 7 percent more on food than rural households. 

y Rural households spent more on gasoline and motor 

oil, and spent a higher percentage of their car and 

truck budgets on used vehicles. In the transportation 

spending category, urban households spent more on 

airline fares.

y Although rural and urban households spent about the 

same on entertainment, rural households spent more 

on pets, and urban households spent more on fees and 

admissions.

Demographics and income

The reference persons of rural households were older 

than those of urban households, with average ages of 

54 and 49, respectively.3

 The reference persons of rural 

households were less likely to have a college education 

than their urban counterparts—49 percent compared with 

63 percent, respectively. (See chart 1.) The homeownership 

rate for rural households was 83 percent, significantly 

higher than the homeownership rate of 63 percent 

for urban households. In addition, 49 percent of rural 

homeowners carried a mortgage, compared with 63 

percent of urban homeowners who did. Rural households 

were more likely to own or lease a vehicle (93 percent) 

than urban households (87 percent). And rural households 

owned an average of 2.4 vehicles, compared with urban 

households’ average of 1.8 owned vehicles. 

Urban households received $15,779 (32 percent) more 

in yearly income than rural households received. Urban 

households received more income in the form of wages 

and salaries, and interest, dividends, rental, and other 

property income. Rural households received $2,076, or 

28 percent, more in Social Security, and in private and 

government retirement income. 

Spending

In 2011, urban households spent $50,348, which 

was 18 percent more than the $42,540 spent by rural 

households. Urban households had higher expenditures 

63

13 13

63

87

83

7 4

49

93

0

10

20

30

40

50

60

70

80

90

100

Homeowner Black or AfricanAmericanHispanic or Latino College education At least one vehicle 

owned or leased

Urban Rural

Selected demographic characteristics of urban and rural households, percent distribution, 2011

Source:U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.

Percent

Chart 1
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 3 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

on food, housing, apparel, and education, while rural 

households spent more on transportation, health care, and 

entertainment.4

 (See chart 2.)

Housing

The principal differences in overall expenditures between 

rural and urban households are the amounts spent on 

the chief elements of housing: mortgage interest and 

rental payments. These expenditures are affected by many 

different variables, but can be understood fundamentally 

by supply and demand, and are often dependent on 

location. Land is scarce in urban areas, and many people 

are vying for limited housing; therefore, rent is higher and 

houses are more expensive. In many rural areas, land is 

plentiful, so prices tend to be lower. Urban households 

estimated that the market value of their owned home 

was $153,147, while rural households estimated that 

the market value of their owned home was $129,111, a 

difference of $24,036. Urban renters reported paying $699, 

on average, for monthly rent, while rural renters reported 

paying $354, on average. 

Urban households were two times more likely to rent 

than rural households, and urban households spent 

$2,404 more on rented dwellings per year. Though urban 

households were less likely to be homeowners than rural 

households, they spent $1,946 more on owned homes per 

year. (See table 1.)

There were differences in spending on other elements of 

the housing budget, too. Urban households spent more 

on natural gas, $438 to $213, and water and other public 

services, $520 to $290, respectively, while rural households 

spent more than urban households on fuel oil and other 

fuels, $423 to $133, respectively.

These data underscore the relative importance of 

housing in the average U.S. household budget. Housing 

expenditures accounted for 34.2 percent of all spending 

in urban households and 28.5 percent of all spending 

in rural households. As a point of comparison, urban 

households spent $17,226 on housing in 2011, more 

than they spent on clothing, transportation, health 

care, and entertainment combined. Although their 

spending habits differ in many ways, both urban and 

rural households spend the greatest share of household 

budgets on housing. 

Food

Rural households allocated a larger share of their budgets 

to food, but urban households spent almost $400 more 

Chart 2

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000

Food at home

Food away from home

Housing

Apparel and services

Transportation

Health care

Entertainment

Education

Personal insurance and pensions

Other expenditures

Urban Rural

Source:U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.

Average annual expenditures of urban and rural households, 2011
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 4 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

on food in 2011. (See chart 2.) Urban households spent 28 

percent more on food away from home, but 5 percent less 

on food at home than rural households. These spending 

patterns provide insight into the preferences and habits 

of consumers. Urban households spent about $200 less 

than rural households on food at home, but spent about 

$600 more on food away from home, including meals at 

restaurants, meals at carry outs, and food on out-of-town 

trips. Interestingly, based on percent reporting, both urban 

and rural households reported eating out at least once 

a week with similar frequency, with 70 percent of urban 

households and 72 percent rural households eating out at 

least once a week. But on a weekly basis, urban households 

spent more at restaurants.

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.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 5 www.bls.gov

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

New cars New trucks Used cars Used trucks Other vehicles

Urban Rural

Source:U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.

Average annual vehicle expenditures of urban and rural households, 2011

BEYOND THENUMBERS PRICES AND SPENDING

Transportation

Whether traveling to work or school, to visit family and 

friends, or to go on a vacation, Americans spend a major 

part of their household budgets on transportation. How 

a household spends their money on travel is affected by 

different factors, such as whether they purchased a new 

or used vehicle, how many vehicles they own, how much 

money they spend on gasoline, and how much money they 

spend on airfare and other forms of transportation. Although 

transportation spending differs by less than $400 between 

urban and rural households, the types of transportation 

expenditures vary greatly. 

In 2011, urban and rural households spent an average of 

$2,586 and $2,817, respectively, on new and used cars and 

trucks. (See chart 3.) Rural households spent 62 percent 

of their car and truck budget on used cars and trucks, 

whereas 50 percent of the urban household’s car and truck 

budget was spent on used cars and trucks. 

Rural households spent $3,115 on gasoline and motor oil, 

compared with the $2,613 spent by urban households. But 

urban households spent more on other categories, such as 

airline fares ($360 compared with $137). 

Health Care

Rural households reported higher spending than 

urban households on health care, $3,426 to $3,303. 

(See chart 3.) Although the total amount spent by rural 

households was only slightly more than urban households, 

rural households spent a larger portion of their total 

expenditures on health care. Further, rural households 

reported spending 32 percent more on prescription and 

nonprescription drugs, including vitamins, than urban 

households.5

Entertainment

Finally, a look at entertainment expenditures reveals 

more differences in the preferences of urban and rural 

households. Urban and rural households spent about 

the same on entertainment. Rural households reported 

spending $2,652 on entertainment in 2011, only $86 more 

than urban households. (See chart 4.) However, a major 

difference in entertainment spending can be found in 

the fees and admissions category, with urban households 

reporting expenditures of $621 per year, on average, and 

rural households reporting expenditures of $299 in this 

category—a difference of $322. 

Chart 3

Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.
U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 6 www.bls.gov

BEYOND THENUMBERS PRICES AND SPENDING

Although urban households spent more on health club 

memberships, movie tickets, and admissions to sporting 

events, rural households spent 48 percent more on pets 

than urban households.6

Summary

The data from the 2011 Consumer Expenditure Survey 

reveal that urban households had a higher income and 

higher expenditures than rural households. The results 

of the survey also illustrate the differences in spending 

between urban and rural households. This BEYOND THE 

NUMBERS article addresses possible explanations for 

these differences. In the case of housing, the concept of 

supply, demand, and location affects the housing costs for 

rural and urban areas. Data on food expenditures show that 

urban households spent more money on food at restaurants 

than rural households. Differences in transportation 

expenditures result from the variance in gasoline usage as 

well as spending on airfare. The older age of the reference 

person in rural households contributes to increased health 

care costs for rural households. Larger pet expenditures by 

rural households narrows the gap between entertainment 

spending by rural and urban households. Although rural 

households spent more on pets, urban households outspent 

rural households in a variety of other entertainment 

subcategories, including health club memberships, movie 

tickets, and admissions to sporting events. 

This BEYOND THE NUMBERS report was prepared by 

William Hawk, economist in the Office of Prices and Living 

Conditions, Consumer Expenditure Survey division. Email: 

Hawk.William@bls.gov. Telephone: 202-691-5131.

Information in this article will be made available to 

sensory-impaired individuals upon request. Voice phone: 

(202) 691-5200. Federal Relay Service: 1-800-877-8339. 

This article is in the public domain and may be reproduced 

without permission.

Suggested citation

William Hawk, “Expenditures of urban and rural households 

in 2011,” Beyond the Numbers: Prices and Spending, vol.2, 

no. 5 (U.S. Bureau of Labor Statistics, February 2013), 

http://www.bls.gov/opub/btn/volume-2/expendituresof-urban-and-rural-households-in-2011.htm. 

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Fees and admissions Audio and visual 

equipment and services

Pets Toys, hobbies, and 

playground equipment

Other entertainment 

supplies, equipment, 

and services 

Urban Rural

Source:U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.

Average annual entertainment expenditures of urban and rural households, 2011

Chart 4

Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey.
BEYOND THENUMBERS PRICES AND SPENDING

U.S. BUREAU OF LABOR STATISTICS | FEBRUARY 2013 7 www.bls.gov

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.

Notes

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Visit our online archives to access past publications at

http://www.bls.gov/opub/btn/archive/home.htm.