Tuesday

	Tuesday; May 24, 2005
City 2nd Best on 'Salary Value' Cost of Living, Average Pay Make Area 'Most Favorable'
By Staff and Wire Reports Huntsville Times

Huntsville, with its combination of high-paying jobs and a relatively low cost of living, is among the best places in the nation to live on the salary
value scale, according to salary.com.

A detailed report just released by Salary.com of living costs and average pay in nearly 200 U.S. cities ranks Huntsville the No. 2 most favorable city in the nation. The new Salary.com report, called "The Salary Value Index," issued today, rates New London, Conn., as the "most favorable" city, followed by Huntsville. New York City was ranked the "least favorable" from a cost-of-living standpoint. "This couldn't come at a better time," Huntsville Mayor Loretta Spencer said Monday, referring to recent news that some 1,600 new jobs could come to Huntsville as a result of the latest round of base realignments and closures. "We shouldn't be surprised, but we are," Spencer said. "Providing good jobs and providing affordable housing is a priority for us."

Salary.com analyzed multiple criteria from 188 metropolitan areas with more than 250,000 residents. The average pay for each area was correlated across more than 2,500 job categories, along with other factors that include living costs, housing costs and employment rate. The analysis did not take into account quality-of-life issues such as school systems, weather, infrastructure and culture. The report identified the difference, or spread, between average pay and living costs in each city. Through this approach, the most favorable cities offer the largest difference between pay and costs. Huntsville was noted for its "substantial increase in scientists and engineers who have come to work for NASA and the U.S. Army's Redstone Arsenal." Cities in some relatively high-cost states were ranked in the "most favorable" category because the average pay in those cities is still well ahead of the living costs.

Also, cities in relatively low-income areas could make the list, as costs are even lower. "It's no surprise that the list of least-favorable cities includes New York, San Francisco and other popular spots high in culture and nightlife because they have extraordinarily high living costs, even though the average pay is high," said Tim Driver, senior vice president of Consumer Products at Salary.com. Although Connecticut is one of the most expensive states, the southeastern corner of the state, where New London is located, continues to offer relative bargains. "New London and the surrounding area offer the most favorable ratio of living costs to average pay," said Bill Coleman, senior vice president of Compensation at Salary.com. "Similar to other leaders on our list, the area has several large employers drawing in talented and experienced employees. This drives salaries and the rate of employment up. New London's rank could change, Coleman said, if the naval base is closed as a result of BRAC.