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# Neighborhood Income Distribution Analysis

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### Neighborhood Income Distribution Analysis

1. 1. Neighborhood Income Distribution Analysis The Reinvestment Fund Policy Advisory Group meeting June 11, 2009
2. 2. Goal: Create a Small-Scale Measure of Income Homogeneity  Measure concentration on the Census tract level relative to the tract itself (not compared to a state or area concentration).  Take into account regional differences in average income.  Income and homogeneity categories are based on a set of fixed levels – in constant dollars – so that change over time can be estimated.
3. 3. Estimating the Level of Homogeneity Census Tract \$25,000 – \$50,000 – \$75,000 - > \$150,000 < \$25,000 50,000 75,000 150,000 Actual 1762 187 56 9 10 “Ideal” 405 405 405 405 405 Cramer V = .84 Actual = # of households in each of the income categories as reported by Claritas. “Ideal” = The # of households in each income category if the households were evenly distributed Cramer V = X2 = Chi-square = (1762-405)2/405 + (187-405)2/405 + (56-405)2/56 + (9-405)2/405 + (10-405)2/405 N = Total number of households = 2025 k = Total number of households = 2025
4. 4. Concentration Level Cramer V Cramer V Cramer V <=.2 .2-.4 >=.4 All Tracts
5. 5. Concentration Level Cramer V Cramer V Cramer V <=.2 .2-.4 >=.4 Low Income Tracts
6. 6. Concentration Level Cramer V Cramer V Cramer V <=.2 .2-.4 >=.4 High Income Tracts
7. 7. Establishing the Income Levels Median Family Low Income Median Family Middle Income Median Family High Income Region Range (represents less than Range (represents between Range (represents more than 35% of PUMS division) 35% and 60% of PUMS division 60% of PUMS division) New England states less than \$41,180 between \$41,180 and \$74,429 above \$74,429 (CT, MA, ME, RI, VT) Middle Atlantic states less than \$37,113 between \$37,113 and \$68,125 above \$68,125 (NJ, NY, PA) East North Central states less than \$34,571 between \$34,571 and \$61,007 above \$61,007 (IL, IN, MI, OH, WI) West North Central states (IA, KS, MN, MO, ND, NE, less than \$34,164 between \$34,164 and \$59,685 above \$59,685 SD) South Atlantic states (DC, DE, FL, GA, MD, NC, SC, less than \$35,038 between \$35,038 and \$61,312 above \$61,312 VA, WV) East South Central states less than \$27,435 between \$27,435 and \$50,839 above \$50,839 (AL, KY, MS, TN) West South Central states less than \$30,707 between \$430,707 and \$56,127 above \$56,127 (AR, LA, OK, TX) Mountain states (AZ, CO, ID, MT, NM, NV, less than \$36,604 between \$36,604 and \$67,735 above \$67,735 UT, WY) Pacific states less than \$40,670 between \$40,670 and \$72,212 above \$72,212 (CA, OR, WA)
8. 8. Final Income Inequality Framework Cramer V Cramer V Cramer V <=.2 .2-.4 >=.4 Tract MHHI <35% PUMS area Tract MHHI 35-60% PUMS area Tract MHHI >60% PUMS area
9. 9. Final Income Inequality Framework Income Concentration Low Medium High Low Income, Low Income, Low Income, Low Low Concentration Medium Concentration High Concentration Income Classification Middle Income, Middle Income, Middle Income, Middle Low Concentration Medium Concentration High Concentration High Income, High Income, High Income, High Low Concentration Medium Concentration High Concentration
10. 10. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Low Income, Low Concentration 0 0 0 0 0 OR \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$39,904 < \$25,000 50,000 75,000 150,000 Actual 557 368 270 285 169 “Ideal” 329 329 329 329 329 Cramer V = .20
11. 11. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Low Income, Mod Concentration 11.5 10.9 18.2 16.5 9.4 MO \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$31,198 < \$25,000 50,000 75,000 150,000 Actual 608 524 204 108 48 “Ideal” 298 298 298 298 298 Cramer V = .38
12. 12. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Low Income, High Concentration 10.3 8.3 16.9 23.5 5.4 AL \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$19,746 < \$25,000 50,000 75,000 150,000 Actual 899 393 175 103 24 “Ideal” 319 319 319 319 319 Cramer V = .49
13. 13. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Middle Income, Low Concentration 6.3 7.3 6.1 4.1 7.6 NY \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$63,720 < \$25,000 50,000 75,000 150,000 Actual 201 284 210 360 150 “Ideal” 241 241 241 241 241 Cramer V = .15
14. 14. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Middle Income, Mod Concentration 45.2 47.5 44.4 42.5 49.1 IA \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$39,375 < \$25,000 50,000 75,000 150,000 Actual 254 272 196 106 17 “Ideal” 169 169 169 169 169 Cramer V = .28
15. 15. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH Middle Income, High Concentration .4 .3 .4 .7 .3 NV \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$52,988 < \$25,000 50,000 75,000 150,000 Actual 0 4,479 6,007 0 0 “Ideal” 2,097 2,097 2,097 2,097 2,097 Cramer V = .62
16. 16. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH High Income, Low Concentration 2.9 3.5 1.9 1.6 4.0 FL \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$65,322 < \$25,000 50,000 75,000 150,000 Actual 422 449 416 550 426 “Ideal” 453 453 453 453 453 Cramer V = .06
17. 17. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH High Income, Mod Concentration 16.5 19.6 10.8 9.9 21.5 TX \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$70,147 < \$25,000 50,000 75,000 150,000 Actual 139 165 246 411 51 “Ideal” 202 202 202 202 202 Cramer V = .30
18. 18. % of all % of all % of all Hispanic % of all % of all Tracts HH HH Black HH White HH High Income, High Concentration 2.2 2.5 1.3 1.2 2.7 NY \$25,000 – \$50,000 – \$75,000 - > \$150,000 MHHI=\$292,442 < \$25,000 50,000 75,000 150,000 Actual 52 40 18 123 710 “Ideal” 189 189 189 189 189 Cramer V = .70
19. 19. Results by Household Race/Ethnicity
20. 20. Results by Household Race/Ethnicity
21. 21. % State Census Tracts Low Income, High Concentration % Low Income - High Concentration % Low Income - High Concentration Rank State Tracts Rank State Tracts 1 Mississippi 24.10 26 Connecticut 8.71 2 West Virginia 21.74 27 Nevada 8.70 3 Louisiana 19.27 28 South Dakota 8.65 4 Arkansas 19.21 29 California 8.48 5 Oklahoma 19.09 30 Illinois 8.15 6 Alabama 18.86 31 Idaho 8.12 7 Kentucky 18.80 32 Virginia 7.34 8 New Mexico 18.78 33 Maryland 6.84 9 Texas 15.70 34 Colorado 6.39 10 District of Columbia 14.53 35 Massachusetts 6.24 11 Tennessee 14.18 36 Nebraska 6.08 12 South Carolina 14.03 37 Wisconsin 5.99 13 Missouri 13.59 38 Maine 5.62 14 Georgia 13.50 39 Utah 5.60 15 Ohio 13.41 40 Washington 5.58 16 Pennsylvania 12.70 41 Iowa 5.34 17 New York 12.63 42 Oregon 5.25 18 Arizona 12.37 43 Delaware 4.76 19 Indiana 11.59 44 New Jersey 4.69 20 Florida 11.49 45 North Dakota 4.04 21 North Carolina 10.94 46 Wyoming 4.00 22 Rhode Island 10.48 47 Minnesota 2.76 23 Montana 10.34 48 Hawaii 2.35 24 Kansas 9.25 49 Vermont 2.29 25 Michigan 8.85 50 New Hampshire 1.85 51 Alaska 1.44
22. 22. % State Census Tracts High Income, High Concentration % High Income - High Concentration % High Income - High Concentration Rank State Tracts Rank State Tracts 1 Maryland 8.27 26 District of Columbia 1.16 2 Virginia 7.68 27 Ohio 0.94 3 Colorado 7.47 28 Rhode Island 0.87 4 Minnesota 5.28 29 Wisconsin 0.87 5 Utah 4.96 30 North Carolina 0.86 6 Hawaii 4.71 31 Pennsylvania 0.85 7 Connecticut 4.29 32 Florida 0.84 8 New Jersey 4.04 33 Indiana 0.80 9 California 4.00 34 Tennessee 0.75 10 Arizona 3.90 35 Kentucky 0.62 11 Kansas 3.84 36 Oklahoma 0.42 12 Nebraska 3.35 37 Alabama 0.38 13 Nevada 3.26 38 Mississippi 0.17 14 Delaware 3.17 39 Oregon 0.13 15 Alaska 2.88 40 Iowa 0.13 16 Texas 2.78 41 West Virginia 0.00 17 Michigan 2.68 42 Louisiana 0.00 18 Illinois 2.62 43 Arkansas 0.00 19 Massachusetts 1.88 44 South Carolina 0.00 20 New Hampshire 1.85 45 Montana 0.00 21 Missouri 1.60 46 South Dakota 0.00 22 Georgia 1.54 47 Idaho 0.00 23 New York 1.49 48 Maine 0.00 24 Washington 1.47 49 North Dakota 0.00 25 New Mexico 1.22 50 Wyoming 0.00 51 Vermont 0.00
23. 23. % State Census Tracts Middle Income, Mod Concentration Rank State Mod Income - Mod Concentration Rank State Mod Income - Mod Concentration 1 Iowa 74.33 26 Alaska 51.08 2 North Dakota 74.24 27 South Carolina 50.84 3 South Dakota 70.27 28 Michigan 50.23 4 Wyoming 66.40 29 Colorado 49.61 5 Nebraska 64.57 30 Texas 49.35 6 Arkansas 61.92 31 Oregon 49.26 7 Wisconsin 61.23 32 Montana 49.14 8 Indiana 59.86 33 Pennsylvania 49.03 9 Idaho 59.78 34 Illinois 48.91 10 Utah 59.70 35 Washington 48.14 11 Mississippi 59.15 36 Florida 45.78 12 Tennessee 58.62 37 Maine 45.27 13 Alabama 58.10 38 Georgia 43.54 14 Vermont 57.71 39 Arizona 43.29 15 Oklahoma 56.63 40 Rhode Island 41.92 16 Kansas 56.47 41 Virginia 40.92 17 Kentucky 56.40 42 New Mexico 39.76 18 New Hampshire 55.19 43 Massachusetts 39.74 19 Minnesota 54.61 44 West Virginia 38.26 20 North Carolina 54.22 45 New York 37.69 21 Ohio 54.14 46 Connecticut 36.24 22 Louisiana 53.54 47 New Jersey 35.42 23 Delaware 53.44 48 California 33.52 24 Nevada 52.39 49 Maryland 33.50 25 Missouri 51.24 50 Hawaii 31.37 51 District of Columbia 30.23
24. 24. All Categories Distribution by State % Census tracts