December 2024
Regional Roundup: Renaissance out West?
Wage and spending growth in the West outpaced other regions this year, but decreasing rental affordability is a growing issue.
Key takeaways
- Spending growth in the West rebounded in 2024 after a lackluster 2023, according to Bank of America aggregated card data. This shift was partially driven by stronger wage growth as the region shook off the impact of tech job losses last year.
- Consequently, consumers appear to be easing back on 'trading down'. However, our data shows the proportion of westerners living paycheck to paycheck is also rising, which may reflect signs of renewed deterioration in the region's housing affordability.
- Median rents in the West and Northeast have become more expensive this year compared to the rest of the U.S. This is a reversal of a multi-year trend that started in 2020, when population shifts to the South ramped up after the onset of the pandemic.
Read our full analysis for a more in-depth look at these trends.
