Commercial Real Estate News / Insight / Thanksgiving Dinner Affordability: A State-by-State Analysis

Thanksgiving Dinner Affordability: A State-by-State Analysis

Published: 11-16-23 Category: Insight

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Thanksgiving, a holiday steeped in historical tradition and marked by communal feasting, is a stark reminder of the financial chasm within the United States.

In some states, the holiday is marred by economic factors that render the traditional celebration a financial strain rather than a joyous gathering. This 2023 Thanksgiving Affordability report sheds light on these states, presenting a tableau of the American economic landscape.

Navigating Thanksgiving Costs: A National Overview

As families nationwide prepare for Thanksgiving, the affordability landscape varies widely. In our study, Alaska, Nevada, and Mississippi emerged as states with the least affordable Thanksgiving dinners due to high costs, elevated food insecurity rates, and unemployment.

National Affordability Findings:

12.5% of the country has food insecurity;
The average US household spends 30.6% of their income on food; and
11.5% of the country lives in poverty.

Cost Snapshot

Diving into the financial details, the national average cost for a traditional Thanksgiving dinner is $80.03. However, the range is noteworthy, stretching from a high of $127.52 in Utah to a more modest $65.81 in West Virginia. This striking contrast highlights families' varied economic challenges in bringing their holiday feast to life.

Delving further, insights from the American Farm Bureau Federation shed light on the evolving cost dynamics. Data shows that, although the overall cost of a Thanksgiving meal has experienced a 31% surge since 2018, there's a glimmer of relief amidst this increase.

A Thanksgiving turkey's average price per pound is $1.27, showcasing a 22% decrease from the previous year. This silver lining offers a welcome break for families navigating the financial landscape of holiday celebrations.

Regional Thanksgiving Affordability Snapshot

The study reveals significant regional differences in Thanksgiving affordability, showcasing stark variations in the cost of holiday dinners across the United States.

Here are the main trends:

Southern States Struggle with Affordability: Louisiana, Mississippi, Georgia, and Alabama are among the least affordable states, contending with high costs, elevated food insecurity rates, and unemployment.
- Midwest and Northeast States Lead in Affordability: States like Iowa, New Hampshire, Nebraska, and Vermont emerge as the most affordable options for Thanksgiving dinners. Their balanced economic profiles, lower food insecurity, and low unemployment rates contribute to this affordability.

Mixed Affordability in the West: States like Alaska, Nevada, and New Mexico face affordability challenges, while states like Wyoming and Colorado perform relatively well. Varying economic dynamics within the Western region influence this pattern in Thanksgiving affordability.

The data therefore illustrates a varied picture of Thanksgiving affordability throughout the country.

Least Affordable States for Thanksgiving Dinner

After analysis and weighting, the Thanksgiving Affordability Index revealed intriguing insights.

Here are the states where it will be the most unaffordable to have Thanksgiving Dinner this year:

Alaska;
Nevada;
Mississippi;
Hawaii;
New Mexico;
California;
Georgia;
Kentucky;
Texas; and

Arizona.

Rank	State	Thanksgiving Dinner Cost	% Food Insecure	Grocery Cost Index	Unemployment Rate %	Household Food Spending As a % of Income	% Living in Poverty	Utility Cost Index
1	Alaska	$87.77	15.4%	121.2	4.1%	31.4%	9.6%	154.1
2	Nevada	$81.66	15.8%	104	5.4%	36.1%	12.0%	100.5
3	Mississippi	$72.69	15.1%	96.8	3.2%	43.0%	18.4%	87
4	Hawaii	$86.49	13.1%	111.3	2.8%	37.4%	8.8%	163.2
5	New Mexico	$77.00	14.2%	96.1	3.7%	34.8%	20.2%	92.8
6	California	$86.73	11.4%	112.3	4.7%	28.1%	11.2%	122.8
7	Georgia	$87.63	16.9%	97.5	3.4%	32.6%	11.7%	88.3
8	Kentucky	$78.46	12.1%	100.8	4.1%	32.7%	17.1%	98.7
9	Texas	$72.31	16.5%	96	4.1%	33.9%	13.5%	101.5
10	Arizona	$78.74	14.4%	102.9	4.0%	31.3%	12.7%	95
11	Louisiana	$68.67	14.7%	94.2	3.3%	37.1%	16.9%	83
12	West Virginia	$65.81	15.3%	98	3.8%	31.9%	15.5%	96
13	Utah	$127.52	10.5%	99.7	2.6%	32.3%	6.0%	97.7
14	Alabama	$81.09	14.6%	95.8	2.2%	36.2%	13.6%	101.8
15	Arkansas	$74.06	13.2%	94.8	2.9%	34.9%	16.6%	91.5
16	Illinois	$80.28	14.3%	98.6	4.4%	28.3%	9.5%	88.3
17	Michigan	$78.94	12.8%	100.1	3.9%	27.1%	12.1%	100
18	South Carolina	$78.51	11.8%	98	2.9%	33.8%	12.9%	112
19	New York	$83.24	10.8%	104.1	4.0%	24.3%	12.7%	103
20	Florida	$73.43	12.0%	99.7	2.8%	34.0%	13.5%	98.9
21	Tennessee	$73.63	13.5%	96.8	3.2%	35.1%	10.5%	93
22	Connecticut	$76.75	12.5%	103.5	3.5%	25.7%	10.2%	138.6
23	Montana	$79.44	13.2%	102.4	2.7%	31.1%	10.4%	94.3
24	Oregon	$88.31	9.3%	109.6	3.5%	26.7%	9.9%	98
25	Indiana	$76.34	12.3%	99.4	3.6%	30.5%	10.4%	102
26	Washington	$81.58	10.6%	110.2	3.6%	26.1%	9.0%	93.5
27	Maine	$87.38	12.1%	102.9	2.7%	28.4%	9.6%	106.2
28	Delaware	$76.27	12.6%	101.5	4.1%	26.1%	9.3%	99.6
29	New Jersey	$76.68	11.3%	101.2	4.4%	26.8%	8.7%	109.8
30	Pennsylvania	$77.95	12.4%	98.3	3.4%	28.1%	10.9%	106.6
31	Idaho	$81.92	11.7%	100.5	3.1%	31.8%	8.2%	88.4
32	Missouri	$79.24	12.1%	95.2	2.9%	30.5%	11.4%	101.5
33	Massachusetts	$86.29	10.8%	105.9	2.6%	23.5%	9.6%	138.5
34	Ohio	$77.84	10.9%	100.4	3.4%	29.1%	9.9%	98
35	Kansas	$74.15	12.3%	96.5	2.8%	31.4%	10.5%	104.9
36	Wyoming	$74.40	12.7%	102.5	2.9%	29.8%	7.1%	91.9
37	Colorado	$75.10	11.5%	103.8	3.2%	28.0%	8.1%	93.1
38	Rhode Island	$81.75	11.5%	103.4	2.6%	26.6%	8.4%	110.4
39	South Dakota	$78.87	11.4%	95.6	1.9%	33.3%	9.1%	86.2
40	Vermont	$79.97	10.2%	105.6	1.9%	25.9%	9.0%	118.2
41	Wisconsin	$80.62	10.9%	99.9	3.1%	26.2%	6.6%	99.5
42	Maryland	$75.79	10.6%	108.4	1.6%	26.6%	8.6%	112.3
43	North Dakota	$87.99	9.8%	93.7	1.9%	30.9%	9.7%	96.3
44	Virginia	$74.35	11.4%	100.6	2.5%	26.6%	8.3%	102.9
45	Iowa	$72.43	10.4%	96.3	3.0%	27.7%	9.4%	95.7
46	New Hampshire	$87.98	8.0%	102.1	2.0%	24.8%	8.3%	127.9
47	Nebraska	$76.72	11.2%	95.6	2.1%	28.8%	7.9%	87.8

#1 – Alaska

High grocery prices, substantial utility costs, and above-average food costs as a percent of income contribute to Alaska's ranking. The state's relative isolation impacts transportation and supply chains, likely driving up the cost of food and utilities.

#2 – Nevada

Nevada's high unemployment, poverty rates, and the significant portion of income spent on food suggest economic factors that impact affordability. The state's dependence on industries like tourism, which are susceptible to economic fluctuations, may contribute to this situation.

#3 – Mississippi

With the highest poverty rate and a substantial percentage of income spent on food, economic hardship is prevalent in Mississippi. Despite lower grocery and utility indices, these factors are offset by low incomes and high food insecurity, making Thanksgiving dinners less affordable.

#4 – Hawaii

Hawaii's high cost of living reflected in the grocery and utility indices as well as a significant portion of income dedicated to food affects affordability. The state's geographic remoteness significantly impacts the cost of importing goods, including food.

#5 –- New Mexico

The highest poverty rate in the nation and a considerable food cost percentage of income contribute to New Mexico's ranking. Economic challenges in the state will likely make Thanksgiving dinners a significant expense for many families.

#6 – California

Despite a strong economy, California's high cost of living, significant utility and grocery costs, and notable percentage of income spent on food make it challenging for lower-income families to afford Thanksgiving dinners.

#7 – Georgia

With a high food insecurity rate and a significant portion of income going towards food, many in Georgia may need help to afford a traditional Thanksgiving dinner despite moderate grocery and utility costs.

#8 – Kentucky

Kentucky's relatively high poverty and food insecurity rates, coupled with a significant percentage of income spent on food, suggest that economic challenges impact the affordability of Thanksgiving dinners.

#9 – Texas

Texas has a notable food insecurity rate and a higher-than-average percentage of income spent on food, which, when combined with its poverty rate, indicates that Thanksgiving dinners can be a considerable expense for many households.

#10 – Arizona

Arizona's moderate grocery index is overshadowed by a high poverty rate and a substantial portion of income allocated to food. The combination of these factors makes Thanksgiving dinners less affordable for residents.

The data paints a multifaceted picture of Thanksgiving affordability across the United States. States grappling with high living costs, elevated unemployment rates, and pronounced food insecurity face significant challenges in making Thanksgiving accessible to all residents.

There's a discernible pattern where economic stressors—such as a higher percentage of income spent on food and higher poverty rates—are interlinked, underscoring the broader systemic issues that some regions contend with. Conversely, states with lower unemployment, lower food costs relative to income, and more robust economic conditions tend to offer a more affordable Thanksgiving experience.

These insights reveal regional disparities and broader economic challenges that can overshadow the Thanksgiving spirit of gratitude and community. As we reflect on the meaning of Thanksgiving, it becomes clear that economic well-being is intrinsically linked to the ability of families to partake in traditions that bind communities and create shared memories.

Methodology:

The MyEListing team analyzed seven metrics to determine which states are the least affordable for hosting Thanksgiving dinner in 2023. Data for each metric in each state was normalized and then weighted in our calculations according to its importance in determining meal affordability.

The seven metrics we used were weighted as follows :

20%: Average Thanksgiving Dinner Cost - Purdue University
15%: Food Insecure % - US Census American Household Pulse Survey
15%: Cost of Living Index - Groceries - Missouri Economic Research Info. Center
15%: Unemployment Rate - U.S. Bureau of Labor Statistics
15%: Household Food Spending As a % of Income - US Census American Household Pulse Survey and U.S. Bureau of Labor Statistics
15%: Living in Poverty % - US Census
5%: Cost of Living Index - Utilities - Missouri Economic Research Info. Center