Regional Spending Trends and Affordability Analysis

This report presents an analysis of consumer spending trends across different U.S. regions, with a focus on affordability challenges. It details how spending growth has accelerated in most regions, particularly in the Midwest and West, while the South has experienced a slowdown despite having the highest wage growth in December 2025. The report outlines the disconnect between wage gains and spending, highlighting that rising costs, especially in housing and transportation, are absorbing much of the income gains for Southern households. It documents the variations in spending on discretionary items, noting that while clothing and restaurant spending has remained positive, there has been a significant pullback in durable goods and travel expenditures in the South. The analysis also discusses the impact of increased rent growth and gasoline prices on consumer budgets, suggesting that affordability pressures are influencing spending behavior across the regions. The report concludes by examining how these dynamics affect the perception of affordability in the South compared to other regions.