Recession didn’t slow Plano residents’ spending

By MATTHEW HAAG / The Dallas Morning News
An economic downturn, a burst real estate bubble and a recession at depths not seen in half a century didn’t stop Plano residents from spending money last year unlike almost any other city nationwide.
Households in Plano, long considered one of America’s wealthiest communities, doled out an average of $56,738 in 2009 on expenses such as department store shopping, health care and restaurants, according to a new study. The figure excludes mortgage or rent payments.
The amount puts Plano fifth in the country in household expenses. Only Austin, which took the top spot ($67,076), ranks higher among Texas cities.
“It’s not a huge surprise,” said Brad Shanklin, president of the Plano Chamber of Commerce. “I’m hoping somewhere along there they are saving money, especially in this economy.”
The study released this week from Bundle, an online company that focuses on expenses and savings trends, offers a peek into the spending habits of Americans. The company compiled the report using credit card transaction information from Citi, an investor in Bundle, as well as federal government data and other research.
Texas, which escaped the worst of the recession, had the most cities near the top of the list. Dallas took the 12th spot ($47,920), followed by Corpus Christi at No. 15 ($46,311) and San Antonio at No. 16 ($46,122). The median household income in the United States barely tops $52,000, according to 2008 census figures.
“We are better off than other parts of the country,” said D’Ann Petersen, an economist at the Federal Reserve Bank in Dallas. “We had pretty strong job losses here as well, but we weren’t in the recession as long.”
The other cities in the top five were Scottsdale, Ariz.; San Jose, Calif.; and Arlington, Va.
New York City and Los Angeles, two metro areas often marked by their hefty personal wealth and lavish spending, landed near the bottom of Bundle’s list, most likely because housing payments weren’t counted.
Bundle’s report portrays Plano households as mostly shunning travel and leisure expenses in favor of shopping at big-box stores and buying lattes at Starbucks. Most months last year, Plano households spent the largest share of their income, about $1,100 per month, on shopping at stores such as Nordstrom and Sam’s Club. The average purchase: $90.
“To me, it says that people, because they aren’t spending as much on housing payments, have more money to spend on other things,” Plano Mayor Phil Dyer said. “It may also be a reflection of people’s confidence in the economy.”
The report notes that Plano households spent nearly $1,000 a month on health care expenses last year. Most of the money went to health insurance – about $400 a month. Meanwhile, travel and leisure expenses topped out last year at an average of $307 in December.
The Bundle report isn’t the first time that Plano’s affluence has put the city in the spotlight. Among cities with more than 250,000 people, the latest census data shows that Plano’s median household income of $84,492 is the nation’s highest.
“We have a highly educated workforce and a tremendous employment center for high-quality jobs,” Dyer said. “Maybe people are feeling a bit more confident that they’ll have a job six months or a year from now.”

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