Memorandum

City of Lawrence

City Manager’s Office

Date:	8/14/06
To:	David Corliss, Interim City Manager
From:	Casey Liebst, Budget Manager
CC:	Debbie Van Saun, Assistant City Manager
RE:	Cost of Living Comparison

In response to a request from a City Commissioner, a series of tables comparing the City of Lawrence to the nine other largest cities in the state is attached. A summary of the data is provided below.

Income Levels

According to information provided in the 2000 Census, Lawrence ranks near the bottom in terms of median household income and income per capita when compared to the nine other largest cities in the state. Only the City of Manhattan and Kansas City, Kansas had a lower median household income than Lawrence. Per capita income in Salina, Manhattan and Kansas City wais also lower than in Lawrence.

According to the 2000 Census, 18.90% of persons living in the City of Lawrence live below poverty level. Only one city in this comparison, Manhattan, has a greater percentage. This could be in part to the large student populations in both cities.

Homeownership

The City of Lawrence has the second lowest rate of home ownership, at only 45.9%. The City of Shawnee has the highest with over 74% of residents owning their home. Again, this may be attributed to the transient nature of the student population in Lawrence. Manhattan, home to Kansas State University, has an even lower home ownership rate of just 42.9%.

Property Taxes and Rent

The table below shows the median property taxes paid in each city in 2000 according to the 2000 Census. Lawrence had a lower median than five of the ten largest cities.

City	median property taxes (2000)
Lenexa	$ 1,716
Overland Park	1,632
Olathe	1,602
Shawnee	1,528
Manhattan	1,317
Lawrence	1,288
Topeka	1,027
Salina	947
Wichita	829
Unified Government	757

Because of the large percentage of renters in Lawrence, it is also important to look at the price of rent. According to the Census data, the median gross rent in Lawrence was $555 in 2000. This is lower than four of the other ten largest cities. The highest median rent was $766 in Overland Park; the lowest was $454 in Salina.

An additional comparison is the percentage of income spent on home ownership or rent. In Lawrence, 20.4% of household income was spent on home ownership. This was higher than any of the other cities in the comparison.

Rent as a percent of household income in Lawrence was also the highest of the cities in the comparison at 30%. The city with the lowest rent as a percent of household income was Shawnee, with a percentage of 22.4%.

Conclusion

While the dollar value of property taxes and rent paid in Lawrence are in the middle when compared to the nine other largest cities in the state, median income in Lawrence is among the lowest. Therefore, the cost of homeownership and rent as a percent of income are higher than in any of the other cities in the comparison.