New misery index measures cities’ malaise

Good news, Detroit: You’re not as miserable as everyone thinks you are.

By MSN Local Edition Apr 1, 2011 9:35AM

Misery loves company, and apparently, it also loves to be measured.© Dusty Pixel photography/Getty Images


Dow Jones and the Wall Street Journal have created a new formula to quantify just how lousy residents of various metro areas are feeling.             


The index measures misery using criteria including unemployment rates, rising gas prices and plummeting home values. Taking data from the Labor Department, gas prices from gasbuddy.com and home prices from Standard & Poor’s, the study puts the national misery index at 20%.

But the real interest lies at the local level – which city lands the unwanted “most miserable” title in this new index?


Congratulations, Phoenix. An annual home-price drop of 9.1% and a 22% rise in gas prices have made you the runaway, er, winner, with a misery index tallied at 31.24%.  

Detroit, which often finds itself near the top of any list with "misery," "dangerous" or "depressed" in the title, ranked a relatively happy 17th in this index, scoring 17.89%.
 

Rounding out the top five are Portland, Ore., 27.67%; Seattle, 25.74%; Minneapolis, 25.24%; and Los Angeles, 24.93%.

Not all misery indexes are created equal. The top five cities on the Wall Street Journal’s list didn’t even crack the top 20 in Forbes’ annual ranking of the most miserable cities for 2011. To compile its list, Forbes looked at the 200 largest metro areas and ranked each based on 10 factors, including violent crime, commute times and tax rates.


The original misery index was created by economist Arthur Okun, an adviser to President Lyndon Johnson, and takes an even simpler approach than the Wall Street Journal or Forbes. The unemployment rate is simply added to the rate of inflation. The misery index for 2010 averaged 11.3% using these criteria.


Is there relief around the corner from all this misery? Not according to the Journal:

Don’t expect misery to ease soon. Although the jobless rate is likely to fall gradually, gas prices are likely to keep rising as the U.S. nears the summer driving season. And the S&P/Case-Shiller report warned there was “no real hope in sight for the near future” concerning home prices.

Is your city more miserable than it’s getting credit for? Tell us on Facebook.


-- Greg Lee is a producer for MSN Real Estate


55Comments
Apr 2, 2011 10:17AM
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It's pretty obvious here that the publisher is just following the data rather than relying on common sence.   Ever been through East St. Louis ?  Ever?
Apr 2, 2011 10:10AM
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Such sensationalist journalism! The 'formula' they used is extremely trendy. Really, the title should read, Phoenix had the fastest rise in misery out of anyone else. It's like if I got a higher percentage raise than anyone else in my company, and then tried claiming that I was the wealthiest person working there. We definitely got hit hard, but we are still doing much better than a lot of the cities out there. I don't see us bulldozing old run down neighborhoods that were abandoned because no one wanted to live there (eh hem, Detroit) or dealing with more depression because we don't get enough sun (eh hem, Seattle). Yes it's hot. Amazingly, swimming, staying inside, and this new invention called A/C helps to handle that. Of course, I laugh the other 7 months out of the year when I'm sitting outside in 60 to 80 degree weather, and reading articles about record snow in the rest of the country.
Apr 2, 2011 9:36AM
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Based on how this link has devolved into a red state/blue state partisan political issue, I would say the whole darned country is pretty miserable.  For this, I mostly blame Rush, FOX, and those that followed in their footsteps.  You can consider me bias for this assessment, but they were the first to start the 24/7 hate and fear mongering.  It has not been good for our country.
Apr 2, 2011 9:33AM
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Phoenix is comfortable all winter long, and the "snowbirds" flock in from every corner of the country. Spring and fall are gorgeous, too. Very hot summers, but with A/C, it's no problem. Housing is affordable, while Scottsdale and Paradise Valley offer world class shopping , spas, and dining. Golf and other sports, well, one could go on, but....

 

A little bird tells me that this non-story is more driven by politics than truth. Right? Yes, I believe so....Island with a palm tree 

Apr 2, 2011 9:32AM
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one very very "STUPID" story by Greg @ MSN Real Estate, everything is a lie and it's all made up and there are no such stats, a very STUPID story
Apr 2, 2011 9:30AM
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Don't you love what this country/world is coming too? Always comes down to politics. One blames the other, the other blames back. Never ending cycle. The fact is both are causing the world's problems. All parties make promises they can never keep just to get into power. Then the people place blame and on other parties, it's turning into a modern day segregation issue. you know what that lead too? Same thing that's going on in Libya and other parts of the world, and something this country already experienced, a civil war. We don't need another civil war, stop bringing politics into everything or else that will be our future. This country needs to work together. The fight should be against overproducing companies, make car manufactures produce less cars each year, really how many need a new car every year, most car companies use robots to make cars so no loss of human jobs. Make these sports players earn a respectable pay, makes me sick when someone gets a million dollar contract, and sits on the bench. Make cities stop building new homes/business buildings when there are tons out there that are empty, put the money into refurbishing them and building public parks and venues. This world revolves too much around politics and the almighty dollar and it's killing this world.

Soon the poor will be poorer, low class will be poor, middle class will be low class, and high class will be middle class, only 2 classes can afford to live anymore, and yet all people do is argue politics and ignore the true picture, nobody will be happy, because as long as politics has many mouths, many egos, only ones losing is the people, because republicans will never agree with democrats and democrats will never agree with republicans. Same goes for Libs, Cons and Reals, they all let there egos come before the ones that truly matter, we the people of these united states of america.

 

Thumbs down me all you'd like, you know all I've said speaks the truth, and the truth hurts.

Apr 2, 2011 9:09AM
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GOOD! Now you Californicators can stay put and stop coming here and trying to Californicate AZ!! And good riddance to you, Rens. I have enough non-driving morons in my way on the 101.
Apr 2, 2011 9:06AM
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I'm a transplant from greater LA.  My neighborhood has seen young families who were buried in debt (thanks to creative financing) walk away from their homes.  The new buyers are mostly snowbirds purchasing a winter home.  In general, they take much better care of their places.  The neighborhood looks better and is much quieter.  Almost a ghost town in the summer.  Easy access to the golf courses.  It's still OK to play golf in 115 degree weather.  If this is misery, I love it.
Apr 2, 2011 8:59AM
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I lived there for 33 MISERABLE years! I  am happy AND proud to report that I now live in a beautiful little "country" town in Oregon,where they have seasons,wild life,and friendly people. I wouldn't go back to that "hell hole" for all the money in the world!
Apr 2, 2011 8:45AM
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Some people will gripe about any place they were living. I love Phoenix, and its close communities. However after living here 56 years, The profile has changed very much. The desert is ugly, covered up with thousand of acres of asphalt, housing , trash, all because of our very rapid growth , many from Calif, Mexico, However we have added thousands of miles of new freeway, that was the biggest problem for years. Public transit now. Give us time we will become a little LA,. That is when I AM LEAVING for  greener pastures,./
Apr 2, 2011 8:37AM
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The only reason I agree with the assessment of Phoenix that it's basically way too hot here for at least six months of the Year. June thru the middle of October is more like Hell than Summer in my opinion, but here I'm stuck!!
Apr 2, 2011 7:07AM
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All really liberal cities.  Libs tend to be miserable in general.  Life has not been and is not now good to them.
Apr 2, 2011 5:03AM
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Sorry, I missed the part of the artical that congradulated Portland and Seattle for being the MOST miserable CITY in America. Thanks for the right wing spin.
Apr 2, 2011 3:09AM
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What? Phoenix? the largest city in a MODEL RIGHTWING state? the state where business flocks to as it is a "right to work sate"( republican spin for no mandatory  unions). Arizona has some of the lowest wages in the west, minimal environmental restrictions, and though they SAY they want the borders locked down, other than a few counties, look the other way while the corporate community uses illegal's to keep wages low. The state senate wants to fix things though, they are on the verge of passing a tax bill, they call a "flat tax" that does nothing more than LOWER the corporate tax liability and RAISES state taxes on poor and middle wage earners. I feel privileged to live in a state like this, of course that doesn't matter because I could never sell my house anyway. 
Apr 2, 2011 1:32AM
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Lived in Phoenix.  They call it mini L.A. for a reason!  I used to joke it took 30 minutes or more to get ANYWHERE there.  And it's hot, hot, hot. People get very very cranky.  Coming from a person who was born & raised in Arizona who is used to the heat that's saying alot!
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About Teresa Mears

Teresa Mears

Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.

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