Why are gas, groceries, housing so expensive in Pierce County? Tacoma economist explains

Inflation is a critical issue in Tacoma and Pierce County, affecting everyday expenses such as groceries, gas, and housing. Economist Andrew Monaco explains that the region's appeal attracts high-income households, increasing demand and living costs. The limited housing supply, coupled with high construction and labor costs, creates challenges for homebuyers and renters. Grocers in Western Washington can charge higher prices due to the presence of wealthier residents, while also facing their own rising expenses, which they pass on to consumers. The article highlights how global oil market fluctuations and Washington's steep gas taxes contribute to elevated fuel prices, with gas costing significantly more than the national average.

Monaco also discusses the broader economic implications of rising company markups and the interconnectedness of global markets, concluding with an analysis of how potential tariff policies under President-elect Trump may further impact consumer prices.