New Orleans cost of living far exceeds incomes

One charming Mid-City double. Private school for two kids. Four Saints season tickets. For an economically depressed city, we sure do spend a lot of money. Even if, as the conventional wisdom goes, we are shielded from the recession, the numbers suggest New Orleanians are going into heaps of debt. The median household income is $37,348, according to 2007 U.S. Census estimates. Slice off one-third of that for taxes, and that leaves $24,899 in take-home income. Yet the amount a typical New Orleanian might spend on annual cost of living expenses comes in at $46,000, almost twice that amount. This just covers the basics such as housing, education, food and car insurance (assuming the cars are paid off). Add a few extras on there like Saints tickets and a Carnival krewe membership, things many New Orleanians say they can’t live without, and it’s more like $50,658. Here’s how those annual costs of living break down: * $18,928, a year’s worth of mortgage payments on a $215,457 house: That’s the average price for a home on the East Bank of Orleans Parish, according to July figures from the Gulf South Real Estate Information Network. Real estate calculators show that a family would actually need to earn $53,326 to afford this, and that’s assuming they cough up $32,828 for a down payment and closing costs. * $4,000, homeowner’s, flood insurance and property tax. * $10,000, tuition for two children at a mid-range private school or day care. Whether private education is essential is up for debate, but many New Orleans parents work extra jobs and take out huge loans just to make it possible. * $2,000, cost to insure two cars: A large population of uninsured drivers, not to mention the city’s famously cratered streets, make this an expensive place to drive. * $11,072, household expenses: That includes groceries ($3,311), clothing ($1,692), utilities ($3,547) and gas ($2,522), according to the Bureau of Labor Statistics’ 2007 Southern averages. Anyone who lives in the Crescent City knows that all of our spending isn’t going purely to necessities. In a city that shuts down for parades and Saints games, the cost of fun in New Orleans is hard to avoid. Here’s a breakdown: * $2,400, annual cost for a family of four to have dinner out once a week: Families in middle America may be cutting back on dinners at Applebee’s, but scaling back the family restaurant budget isn’t so easy in New Orleans. We’d rather be caught dead than forgo the season’s first batch of charbroiled oysters. But we’re paying for it. It costs a family of four about $50 to go to a mid-range restaurant, and it adds up quickly. * $1,500, membership and throws for two people in a Carnival krewe. * $648, Saints season tickets for a family of four: These are the cheapest seats available if you want to bring your family to the Superdome for home games. * $110, price for two adults and two children to get into Jazz Fest: That doesn’t include tax or service fees. Ditto for crawfish bread. We can pretend all we want that living in “recession-proof” New Orleans means we can still afford things like private schools and an active social life. But at some point, we need to admit the emperor is naked. We’re going to have to start making some of the same tough choices as everyone else. Maybe buying a modest suburban cottage or renting is a more realistic housing option. And with more magnet and charter schools available, maybe private schools aren’t the only real answer anymore. It isn’t easy, but it’s reality. There will always be people who seem to “have it all.” But they’re likely racking up a massive debt load.