What’s measured This indicator measures median household income by county for 1995 and for 2000 through 2004, using data from the U.S Census Bureau’s Small Area Income and Poverty Division. Median household income measures the income of a particular household for which there are an equal number of households with more income and an equal number of households with less income. In contrast, the “mean,” or average, household income divides total income of all households by the number of households. The U.S. Census reports median household income for states and counties, but does not release the detailed census data that would be needed to calculate the region’s median household income. This indicator is thus reported for each county rather than for the region as a whole. Why it’s measured Median household income offers a good measure of income levels of households in the middle of the distribution curve and thus of provides insight into households’ buying power and the region’s economic performance. Indicator results In 2004, the median household income for North Carolina was $40,863. Of the region’s eleven North Carolina counties, six had a higher median household income than did the state. The 2004 median household income for South Carolina was $39,454. Of the region’s three South Carolina counties, only one (York) had a median household income higher than the state median. The county in the region with the highest median household income for 2004 was Union ($56,218), followed by Mecklenburg ($49,683) and Cabarrus ($48,446). Over the fifteen-year period from 1995 to 2000, only Union experienced a faster rate of increase in its median household income (48.2 percent) than did its state (North Carolina, 27.8 percent). Similarly, in the four-year period from the 2000 decennial census through 2004, only Union County outpaced its state in rate of increase in its median household income (Union, 9.6 percent; North Carolina, 5.1 percent). From 2000 to 2004, Anson, Catawba, Cleveland and Mecklenburg counties each experienced a decrease in their median household income. Evaluation Measures of median household income provide information about total income and the distribution of that income. Overall, the region appears to be performing on par with North Carolina and South Carolina with respect to median household income. The counties are equally divided between those that have a higher median household income than their state and those that have a lower median household income than their state. This comparison over time, however, shows some potentially disturbing trends. Median household income for North Carolina and South Carolina is rising more rapidly than median household income in most counties of the region. This suggests that either increases in total income in the region are not keeping pace with growth in the states, or the increases in income are not being distributed evenly across all wage-earners. While increasing median household income for many counties could indicate rising wages and higher paying jobs, it could also be due to an increase in number of employed workers per household. For counties with rising total income but falling median household income, rising income inequality may be a problem. For example, Mecklenburg County had the second-highest median household income among the counties in both 2000 and 2004, trailing only Union County in both instances. But Mecklenburg’s median household income fell from $50,845 in 2000 to $49,683 in 2004, a two percent decline. Possible explanations include a shift in source of incomes from earned wages to retirement incomes and a decrease in the size of households leading to decreasing median household incomes. In 2000, the average household size was 2.49 according to the US Census Bureau. By 2006, the American Community Survey conducted by the US Census estimates the average household size has dropped to 2.41. Connections Median household income has important connections to affordable housing. If increases in median household income do not keep pace with increases in housing prices, then home buyers in the region may have a difficult time finding affordable, desirable housing. Median household income provides a good picture of households in the middle of the income distribution curve because the number is not affected by unusually high or low values. This middle segment is an important component of the region’s economy. However, if the median income continues to trend downward, it may signal that jobs in the area are not paying well. If jobs are not paying well, people may decide to move elsewhere, which in turn affects the economic structure by putting financial strains on businesses, the housing market, health and social systems and the government.
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