Los Angeles-Long Beach-Anaheim vs Memphis

What This Comparison Actually Tells You

The Bureau of Economic Analysis indexes Los Angeles-Long Beach-Anaheim, CA at an overall Regional Price Parity of 113.6 and Memphis, TN-MS-AR at 92.2, using the U.S. national average of 100 as the reference point. That puts Memphis 18.8% less expensive than Los Angeles-Long Beach-Anaheim on a blended basket of goods, services, and rents. The raw index gap of 21.4 points matters more than the headline comparison because it flows directly into salary-equivalent math that families use for relocation, job offers, and remote-work arbitrage decisions.

Inside the breakdown, Los Angeles-Long Beach-Anaheim indexes goods at 106.6, services at 158.6, and rents at 170.4, while Memphis comes in at 96.2, 74.1, and 79.8 on the same three categories. The rent line carries the largest weight in the BEA methodology, so a metro with a higher rent index almost always ends up more expensive overall - Los Angeles-Long Beach-Anaheim carries the heavier rent load here, and that tends to dominate household budget experience on the ground.

In salary terms, a $100,000 income in Los Angeles-Long Beach-Anaheim has the same purchasing power as $81,168 in Memphis based on these indexes. The two metros serve populations of roughly 13,012,469 (Los Angeles-Long Beach-Anaheim) and 1,341,606 (Memphis), and median household incomes are $93,525 versus $64,743 respectively - so the right way to read this comparison is never the index alone, but the ratio of your expected local salary to the rent and services mix. For any serious relocation or remote-work decision, pair this BEA comparison with BLS occupation-specific wage data, HUD Fair Market Rent tables, and state tax treatment before committing.