John Reinhardt

What is Affordability?

When someone asks, "How affordable is Atlanta?" what he or she means to say is, "What is the cost of living in Atlanta?" One method of determining the cost of living is to measure and compare the prices of good and services from metropolitan areas in the United States. The Council for Community and Economic Research (C2ER) developed an index to measure cost of living differences across urban areas. Formerly known as the American Chamber of Commerce Research Association (ACCRA), the ACCRA Cost of Living Index (COLI) is a widely used tool for cost of living comparisons. The composite index uses 57 weighted measures including such indicators as mortgage rate, home price, phone bill, apartment rent and the costs of ground beef, dry cleaning, doctor visits, electricity and gasoline. COLI is one of the most reliable sources for city-to-city comparisons of key consumer costs available among researchers.

COLI is recognized by the U.S. Census Bureau, U.S. Bureau of Labor Statistics, CNN Money and the President's Council of Economic Advisors. COLI data and methodology is continuously reviewed by academic researchers and government officials and is referenced in the U.S. Census Bureau's statistical abstract of the U.S.

The COLI does not measure inflation (price change over time). Because each quarterly COLI is a separate comparison of prices at a single point in time, and because both the number and the mix of participants change from one quarter to the next, COLI data from different quarters cannot be compared. For inflation data, contact the U.S. Bureau of Labor Statistics (BLS).

Using a measure of 100 as the national average for the third quarter of 2007, Atlanta has a composite index score of 98. That means Atlanta's cost of living is 2 percent lower than the national average.

How to use the ACCRA Cost of Living Index

According to the COLI, for the 3rd quarter of 2007, Atlanta has a composite index of 98.0 and Orlando has a composite index of 104.6. If you live in Atlanta and are contemplating a job offer in Orlando, how much of an increase in your after-taxes income is needed to maintain your present lifestyle?

The Atlanta to Orlando calculation is:
100*[(Orlando - Atlanta)/Atlanta] = 100*[(104.6-98.0)/98.0] = 100*(.0673) = 6.73 percent, or about a 6.7 percent increase

Conversely, if you are considering a move from Orlando to Atlanta, how much of a cut in after-taxes income can you sustain without diminishing your present lifestyle?

The Orlando to Atlanta calculation is:
100*[(Atlanta - Orlando)/Orlando] = 100*[(98.0 - 104.6)/104.6] = 100*(-.0631) = -6.31 percent, or about a 6.3 percent reduction

The following table compares COLI scores for several metropolitan areas:

Source: ACCRA Cost of Living Index
3rd Quarter, 2007

John J Reinhardt

REALTOR

Solid Source Realty

http://www.infrontmarketing.com/

Phone: 770.475.1130 Ext. 6806

REALTOR

770.475.1130 Ext. 6806

http://www.InFrontMarketing.com

Contact John by email here!

Acworth, Georgia is located about 35 miles northwest of Atlanta, is surrounded by two beautiful lakes (Lake Acworth and Lake Allatoona) which offer beaches for swimming, fishing, boating and camping opportunities. Nestled along the banks of Lake Acworth is Cobblestone Golf Course rated the #1 public course in Georgia by Golf Digest.

The eclectic downtown historical district offers a global wine shop and restaurants you would not regularly find in a small town with a family atmosphere; yet close to both Interstate 75 and Highway 41 that brings you to Atlanta major sports and cultural events.

The Dixie Highway, "the granddaddy of Interstate 75" was the first interstate to reach into the south and is Acworth's Main Street, which was a part of the original Dixie route. Today, Acworth is designated as a Georgia Main Street city and is part of the Main Street America program. As a result, the city is committed to preserving the historical significance of its downtown district buildings.

Acworth real estate sales continue to be swift. Homes for sale in Acworth range in all sizes, ages and prices. For the savvy home shopper, Acworth is a great place to call home.

*Information for Acworth, GA zip code 30101*
Median household income - $68,068
Median home value - $196,100
Home Appreciation - 4.5%
High school graduates - 90.2%
4-year college degree - 26.8%
Graduate Degree - 8.4%

*Information for Acworth, GA zip code 30102*
Median household income - $60,523
Median home value - $172,400
Home Appreciation - 4.3%
High school graduates - 84.9%
4-year college degree - 19.1%
Graduate Degree - 5.8%

Solid Source Realty

John Reinhardt

770.475.1130 Ext 6806

http://www.InFrontMarketing.com