Purchasing power in the Allgäu: Unterallgäu district surprises with growth!

Purchasing power in the Allgäu developed differently last year and shows notable regional differences. According to a study by the German Economic Institute (IW), only a few districts in the region are in the top 50 in terms of purchasing power in the entire Federal Republic. The Unterallgäu district took 21st place, while the Oberallgäu district landed in 44th place. The city of Kaufbeuren reached 238th place, Kempten only ranked 294th out of a total of 400 cities and districts.

The differences in the development of purchasing power compared to the previous year are drastic. While the city of Memmingen was at the top in 2023, it was overtaken by surrounding counties. The Unterallgäu district in particular recorded strong growth and was thus able to secure a lead over Memmingen. Overall, the Unterallgäu district represents the best development of purchasing power in the Allgäu. In contrast, Kempten and Kaufbeuren show declining trends.

Results of the investigation

The IW and the BBSR published a regional price index to determine the cost of living in 400 districts and independent cities in Germany. This shows that the cost of living often increases near metropolises and metropolitan areas. Kaufbeuren is considered the cheapest district in the Allgäu, but this does not necessarily mean that the people living there have more financial flexibility.

Purchasing power consists of offsetting living costs and income. The Lindau district has the highest median income in the Allgäu with 3,724 euros gross per month, closely followed by the Unterallgäu with 3,719 euros gross. Interestingly, purchasing power in 2022 shows that despite having the highest income, Lindau has a lower purchasing power than Oberallgäu, which is due to higher living costs.

Kempten has the lowest purchasing power in the Allgäu because the cost of living there is high and incomes do not rise to the same extent. In contrast, Memmingen has the highest purchasing power in the region and ranks 38th in Germany, 9.6 percent above average. The Starnberg district in Bavaria tops the list with the highest purchasing power in Germany, despite a 14 percent higher cost of living than average. Gelsenkirchen, on the other hand, has the lowest purchasing power in Germany with just 19,000 euros net per year.

Overall, the trend shows that people in rural areas often have more money at their disposal than in expensive cities, which further illustrates the regional differences in purchasing power.