Bloomfield Hill’s Median Income Ranks Top in Southeastern Michigan

In Southeastern Michigan the average median income was $50,750 in 2015, according to the American Community Survey. Of the seven counties in the region, Wayne County had the lowest median income at $41,210 while Livingston County had the highest at $75,200. Although Livingston County had the highest median income in the region it was Oakland County that had the most number of communities with median incomes above $100,000. In total, there were 12 communities in Oakland County with median incomes above $100,000 and the city of Bloomfield Hills had the highest median income, both county and region-wide, at $172,768.

Income disparity is a growing issue at the national and local levels. In Michigan, this disparity is particularly exemplified due to the fact that the average hourly wage in the state has decreased from what it was a decade ago. According to a recent Crain’s Detroit article, the median hourly wage in Michigan in 2017 is $17.32 and in 2007 it was $18.67. In 2010 in Michigan, residents had a 46 percent chance of out earning their parents, according to a recent Stanford study, which is highlighted in the Crain’s article. The example in the article used to highlight this decline in wages is that in 1977 a newly employed high school graduate at General Motors was earning about $26 an hour (number adjusted with inflation) and today that wage is about $16. Other aspects that contribute to an individual’s economic mobility include access to jobs, particularly those with higher wages, and educational attainment.

In next week’s post we will see how median income has changed regionally since 2000 and 2010, further exploring the claim that upward mobility has declined.

 

Detroit’s Liquor Licenses Above 1,000

In the City of Detroit there are a total of 1,017 liquor licenses, which equates to about 15 liquor licenses per 10,000 people. A look at the Detroit map below shows that establishments with these licenses are located throughout the city, but patterns occur on major roadways, such as Gratiot and Woodward avenues, and in the larger business districts, such as the downtown area and up into Midtown. There is also a concentration of establishments with liquor licenses in Southwest Detroit.

In Michigan there are several types of liquor licenses which can be obtained, according to the Department of Licensing and Regulatory Affairs, which provided the data for this post. These include licenses needed to sell just beer, those need to sell beer and liquor at a golf course, a hotel, a bar and at a private event. Additionally, brewpubs, distilleries, wholesalers (both those in state and those out of state bringing goods in), winemakers, and stores selling beer and/or liquor need a license. All liquor licenses in the state of Michigan are issued by the Michigan Liquor Control Commission; each license (with the exception of special designated ones) can be transferred anywhere within the county in which the original license was issued.

For this post, there are maps of seven different communities, each one represents the community in each Southeastern Michigan county with highest number of establishments with liquor licenses per 10,000 people. The maps however are dot maps, showing the total number of establishments in each community. The regional map though, which is the first map shown below, represents the number of establishments with liquor licenses per 10,000 people. The per capita calculation was used to best show how many establishments there are per person, or in this case per 10,000 people, so the data could be comparable for each community in the region. Due to how the per capita rate is calculated (taking the old total number of establishments, multiplying it by 10,000 and then dividing that number by the total population) the rate often appears larger than the total number of establishments with liquor licenses.

While Detroit has the highest total number of establishments with liquor licenses in Southeastern Michigan, the village of Memphis has the highest total of liquor licenses per 10,000 people at 63. In total, Memphis, of southern St. Clair County, has 5 establishments with liquor licenses, most of which are concentrated in the downtown business district. The total population of Memphis about 800, a number that plays a role in its high number of liquor licenses per capita. Each community with the highest number of establishments with liquor licenses per 10,000 people in each of the seven counties has smaller population numbers, and of those other six communities The cities of Plymouth and Utica are the only two that have more than 20 establishments with liquor licenses. The city of Plymouth has 39 and Utica has 25 establishments with liquor licenses. The rate per 10,000 people for Plymouth is 44 and the rate for Utica is 53. Plymouth’s population is nearly double of Utica’s at about 9,000 people. The total number of establishments with liquor licenses and the per capita number for the other communities with the highest per capita in each county are:

  • Plymouth (city)-39 (total); 44 (per capita)
  • Uitca: 25, 53
  • Chelsea-19; 37
  • Village of Dundee-14; 35
  • Pinckney-7; 48
  • Clarkston—5; 54

In all of the maps featured below there are two common themes on where the establishments are located. Particularly in Plymouth and Utica, there is a concentration of establishments with liquor licenses in the centrally located downtown districts. In the smaller communities, such as Dundee or Clarkston, the establishments are located along major roadways in the community.

Throughout Southeastern Michigan there are 10 communities with more than 100 establishments with liquor licenses; all of these communities have populations of 75,000 or more. In terms of sheer volume, Ann Arbor has the second highest number of establishments with liquor licenses at 214, which is about 800 less than the number of establishments the City of Detroit has.

According to a study by the Pacific Institute, a high concentration of liquor stores holders can may be related to several public safety and health problems, ranging from high rates of alcohol related hospitalizations, to pedestrian injuries, to high levels of crime and violence. According to data from the Federal Bureau of Investigation we know that Detroit’s violent crime rate was 1,749 per 100,000 residents in 2015 (the most recent data available) and the city’s property crime rate was 4,070, while the state of Michigan’s violent crime rate was 415.5 per 100,000 residents and its property crime rate was 1,889. In Ann Arbor, the violent crime rate was 192 in 2015 and the property crime rate was 1,991.

Unemployment Decreases throughout Southeastern Michigan

  • The unemployment rate decreased at the State and local level(monthly);
  • Regionally, Washtenaw County’s unemployment rate remains the lowest;
  • The average 30-year mortgage interest rate in Detroit is higher than the national average, lower than the week the federal interest rate was increased;
  • The Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area shows home prices continue to increase monthly and annually.

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan decreased slightly to 5 percent in March of 2017 from 5.3 percent the previous month. The City of Detroit’s rate also decreased, but at a slightly larger rate. In March 2017, the City of Detroit’s unemployment rate was 10.3 percent, a substantial cut from February’s 12 percent. Additionally, unemployment in the City of Detroit decreased from to 11 percent in March of 2016 to 10.3 percent in 2017.

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for March of 2016 and 2017. St. Clair County had the highest unemployment rate for both 2016 and 2017 (7.1 and 6.2, respectively) while Washtenaw County had the lowest rates (3.1 and 2.8, respectively). St. Clair County and Wayne counties were the only two in the region with unemployment rates at or above 6 in March for both years. St. Clair County also had the largest unemployment rate decrease between March 2016 and 2017 at .9; Monroe County had the lowest at .1.

Four of the seven counties (Livingston, Monroe, Oakland and Washtenaw) all had unemployment rates at or below 5 for March of 2017.

Above are three average 30-year mortgage interest rates at the national, state and local levels for the week of May 15, 2017. These rates were provided by bankrate.com, which does a national survey of large lenders on a weekly basis. As a 30-year fixed rate mortgage is the most traditional type of home financing, this was chosen to show the rate differences. The State of Michigan had the lowest average interest rate for the week of May 15, 2017 at 3.82, which was lower than the last time we examined that data (week of May 20, 2017 the rate was 4.14 percent). Also during the week of May 15, 2017 Detroit’s average 30-year fixed mortgage interest rate was higher than the national average; this was not the case during the week of March 20, 2017. During the week of May 15, 2017 Detroit’s average 30-year fixed mortgage rate was 4.12 and the national average was 4.02.

Compared to two months ago, when the Federal Reserve Raised the federal interest rate by .25 percent, mortgage rates at the local (Detroit), state (Michigan) and national level are lower. While the rates are currently lower, the federal interest rate increase is expected to impact credit products, such as mortgages and auto loans, in addition to savings, home equity lines of credit and credit cards.

The above charts show the Standard and Poor’s Case-Shiller Home Price Index for the Detroit Metropolitan Statistical Area. The index includes the price for homes that have sold but does not include the price of new home construction, condos, or homes that have been remodeled.

According to the index, the average price of single-family dwellings sold in Metro Detroit was $111,790 in February 2017; this was $940 higher than the average family dwelling price in January. Also, the February 2017 price was an increase of $8,440 from February of 2016 and an increase of $14,720 from February of 2015 and an increase of $18,370 from February of 2014.

Monroe County has Highest Medical Marijuana Licenses Per Capita in Southeastern Michigan

In 2016 in Southeastern Michigan there were 98,055 registered medical marijuana patients, a number that has grown by about 45 percent since 2012, according to data provided by the Michigan Bureau of Licensing and Regulatory Affairs (LARA). LARA is required to provide an annual report on the Michigan Medical Marihuana Program, which includes the annual number of patients by county.

In terms of sheer volume, Wayne County had the highest number of medical marijuana patients in the region at 34,941 in 2016. However, when examining the data per capita per 1,000 residents, Monroe County had the highest number at 26. In Monroe County in 2016 there were 3,889 medical marijuana patients. In 2012 the total number of medical marijuana patients in Monroe County was 2,118; between 2012 and 2016 the total number of patients in Monroe County grew by 55 percent.

On the opposite end of the spectrum, Livingston County had the lowest number of medical marijuana patients per 1,000 residents at 18, which was the equivalent to 3,463 total patients. Between 2012 and 2016 the number of medical marijuana patients in Livingston County grew by 54 percent.

Wayne, St. Clair and Oakland counties all had a similar number of medical marijuana patients per 1,000 residents as Livingston County. All three counties had about 20 medical marijuana patients per 1,000 residents in 2016. St. Clair County has experienced the highest percentage of growth since 2012 at 72 percent.

As the data shows, the number of medical marijuana patients in Southeastern Michigan has grown over the last five years, and this isn’t a trend unique to the region. Statewide data proves that throughout Michigan the number of medical marijuana patients has increased. In the graph above, a decline in the number of the medical marijuana patients is shown between 2013 and 2014, however this decline is not necessarily accurate. Rather, it reflects the two-year registry program, so the number reflects only the new patients who were required to apply that year.

While the number of medical marijuana patients in Michigan continues to grow there are efforts to fully legalize marijuana for adults 21 years of age and older. On May 5, the Michigan Coalition to Regulate Marijuana Like Alcohol, submitted language that would create a system allowing for the legal cultivation, sale and regulation of the substances. If enough signatures are gathered, the hope of the organization is for the ballot initiative to be on the November 2018 ballot.

Percentage of Occupied Rental Units Continues to Climb in Southeastern Michigan

There were nine municipalities in Southeastern Michigan that experienced more than a 100 percent increase in occupied rental units between 2010 and 2015, according to the American Community Survey. Sylvan Township in Washtenaw County had the largest increase at 301 percent. In 2010 the township had 2.32 percent of its housing stock serving as filled rental units and by 2015 that increased to 9.3 percent, or a total of 109 rental units. Overall in Sylvan Township in 2015 there were 1,169 occupied housing units. All the municipalities with such high rental rate increases were among the smaller communities in the region.

Detroit, the largest city in the region, had an 11 percent increase in rental units. In 2010, 46 percent of the city’s occupied housing stock was rental units and in 2015 that number increased to 51 percent, or about 124,000 units. There were only four Census tracts in Detroit (two in the north east corner and two on the west side) where the percentage of rental units increased by more than 150 percent. The northwest area of the city had about 25 Census tracts that experienced an increase between a 25 and 75 percent in occupied rental units. On the opposite side of the spectrum, there were 178 Census tracts in Detroit where the percentage of occupied rental units decreased by up to 60 percent. The data we are looking at in this post is related to occupied housing units, meaning increases and decreases can be directly correlated with the number of occupied rental units and overall occupied housing units. Overall, in 2010 in Detroit there were about 272,000 occupied housing units, of which about 124,000 were rentals. In 2015 the total number of occupied housing units decreased to about 256,000 while the number of rental units increased to about 129,000.

 

In a recent post we discussed how Highland Park had the highest percentage of occupied rental units in the region at 64 percent. Between 2010 and 2015 there was an overall 6 percent increase. In 2010 there were about 5,000 occupied housing units of which about 3,050 were occupied rental units. In 2015 there were about 4,500 occupied housing units, of which 2,880 were occupied rental units.

Other areas to note that have experienced increases in the percentage of rental units are the inner-ring suburbs that border Detroit. For example, Redford experienced an 87 percent increase in occupied rental units between 2010 and 2015, Eastpointe experienced a 61 percent increase, Ferndale experienced a 46 percent increase, Warren and Hazel Park each experienced a 26 percent increases.

 

There were 42 municipalities that experienced a decrease in the percentage of rental units occupied between 2010 and 2015 in the region. Similar to the municipalities with among the highest percentage of occupied rental unit increases, those with the decreases also had smaller populations and housing stocks. For example, the city of Huntington Woods in Oakland County experienced a 35 percent decrease in the occupied rental units. However, in 2015 there were about 2,500 total occupied housing units, 77 of which were occupied rental units.

 

While we do know that the total number of rental units has increased over the years as a reflection of the economy and the housing crisis, this post also brings to light how a community’s overall housing stock must also be considered.

Percentage of Rentals on the Rise in Southeastern Michigan

Between 2010 and 2015, 72 percent of the communities in Southeastern Michigan experienced an increase in the percentage of homes that served as rentals, meaning majority of the communities experienced a decrease in residents serving as homeowners. Of those communities, there were 11 communities in Southeastern Michigan that experienced rental rate increases above 10 percent between 2010 and 2015. The city with the largest increase was Milan, located in Monroe County, at 20.2 percent. According to data from the U.S. Census Bureau, in 2010 23.1 percent of the homes in Milan served as rentals and by 2015 that increased to 43.3 percent.

At the county level, Wayne County experienced the largest increase in communities that saw rental rates increase. According to the data, 93 percent of the Wayne County communities experienced an increase in rentals between 2010 and 2015. Of those Wayne County communities, Belleville experienced the highest increase at 15.1 percent. In 2010, 27.4 percent of the homes in Belleville were rentals and by 2015 that increased to 42.4 percent.

Overall, the areas of Southeastern Michigan that experienced the greatest increase in the percentage of homes serving as rentals between 2010 and 2015 were Detroit, and its inner-ring neighbors, along with the western side of Macomb County. Of the inner-ring suburbs, Harper Woods experienced the highest percentage increase in homes being rented at 13.2 percent. In 2010, 24.7 percent of the homes were rentals and by 2015 that increased to 37.9. Just below Harper Woods was the city of Ferndale, another inner-ring suburb, with an increase of 12.8 percent. In 2010, 27.5 percent of the homes in Ferndale were being rented and by 2015 that increased to 40.3 percent. Eastpointe, Utica and Roseville, all Macomb County cities, two of which neighbor Detroit, came in just below Ferndale with rental rate increases at 12.2, 11.6 and 11.3, respectively. Of these three communities, Utica, which is in the northwestern part of Macomb County, had the highest percentage of rentals in both 2010 and 2015. In 2010, 35 percent of the homes in Utica were rentals and by 2015 that increased to 46.7 percent.

Of all the communities in Southeastern Michigan, Detroit ranked 60th when examining how rental rates increased between 2010 and 2015. In 2010 the percentage of homes being rented was 45.5 and in 2015 that increased to 50.6. Within the City’s limits there were six Census Tracts that experienced rental rate increases between 25 to 52 percent. A pocket of the city’s northwest side, near Palmer Park and Rosedale Park, appears to be experiencing rental rate increases up to 25 percent. There is also a pocket on the city’s west side that is experiencing a decrease in rentals. In Southwest Detroit there are seven Census Tracts that each have experienced a decline in the percentage of rental homes by up to 22 percent; there is a similar pocket with nine Census Tracts just west of Highland Park.

 

As our previous posts show our region has experienced hundreds of thousands of home foreclosures from 2010 through 2014 as part of the Great Recession. In all probability most of those homeowners have become renters, assuming they have not left the region. This explains much of the shift to rental ownership, though some could come from the construction of new rental properties or the demolition of homeowner properties. The foreclosures and decline in home ownership represent a massive loss in wealth for homeowners and a massive increase in revenue for rental owners.

Detroit’s Population Density Below Other Major Cities

In Detroit, there is about 677,000 people living in a 139 square mile area; this translates to about 4,900 people per square mile. Comparatively, in New York City the population density is about 28,000 people per square mile, in Washington D.C. it is about 11,000 people per square mile, in L.A. it’s about 8,500/square mile, in Chicago it is about 12,000/square mile and in San Francisco it is about 18,000/square mile. When looking at cities overseas some of those numbers double, if not triple.

Sparefoot.com, a website used to help individuals’ move,  recently created several data visualization images to show how low Detroit’s population density is compared to other large cities. To see this and read the article, click here.

The image below was also provided by them:

 

Highland Park Home to Highest Number of Rental Units in the Region

In 2015 there were nine cities in Southeastern Michigan where more than 50 percent of the housing units were renter occupied. Ypsilanti had the highest percentage of renters at 69 percent, followed by Royal Oak Township at 67 percent. Ann Arbor, Auburn Hills and Detroit, all homes to universities, also had more than 50 percent of its housing units renter occupied. In Detroit, 51 percent of the occupied housing units were renters. Areas with the highest percentage of renters in Detroit were located along the river and in the lower Woodward Corridor. In these areas more than 75 percent of the housing units were occupied by renters. Conversely, areas such as Palmer Park and Rosedale Park had among the lowest percentage of renters, ranging between 2 and 30 percent. There were only 20 Census tracts in Detroit where 30 percent or less of homes were occupied by renters. As seen below, majority of the Census tracts throughout Detroit had between 30 and 60 percent of the occupied housing units occupied by renters.

Percent of Homes Rented_Detroit_Census Tract_JPEG

Percent of Homes Rented_SEMCOG_MDC_JPEG

At the county level, Livingston County had the lowest percentage of renters at 15 percent while Wayne County had the highest percentage at 37 percent. In Livingston County, Cohoctah Township had the lowest percentage of renters at 3 percent and Howell had the highest percentage at 48. In Wayne County, it wasn’t Detroit with the highest rental rate, but rather Highland Park at 64 percent. Grosse Pointe Farms had the lowest rental rate in Wayne County at 2.6 percent.

Regionally, the average percentage of homes rented was 22 percent in 2015; of the 210 communities in the region 112 of them had less than 22 percent of the housing units occupied by renters. Of those 112 communities, 47 of them had rental rates below 10 percent. Novi Township, located in Wayne County, had the lowest percentage of renters at 2 percent, followed by Orchard Lake (2.3%) and Grosse Pointe Farms (2.6%).

While there were less than 10 cities in the region with rental rates above 50 percent, we will highlight next week that there has been a trend toward renting in recent years, particularly in certain areas. In a recent Detroit Free Press article higher rental rates was attributed to the increased number of foreclosures that occurred during the mortgage crisis. A 2015 New York Times article discusses how homeownership rates had been falling for eight years straight at that time, largely due to the burst of the housing bubble.

Percentage of Residents Insured in Southeastern Michigan Increases since 2010

Across Southeastern Michigan all seven counties experienced an increase in the percentage of residents with health insurance between 2010 and 2015. In 2010 then President Barack Obama signed the Affordable Care Act into law; this is a piece of legislation that was crafted to increase access to and the quality of health insurance. Wayne County experienced the largest increase in overall health insurance coverage at 2.8 percent. In 2015, according the American Community Survey, 87.7 percent of the Wayne County population had health insurance. Wayne County also experienced the largest increase in private health insurance regionally at 17.5 percent. Of those with health insurance coverage in Wayne County in 2015, 83.2 percent had private health insurance coverage. For areas like Wayne County, where the percentage of those on private insurance plans has increased, it is likely due to the larger amount of private insurance options the Affordable Health Care Act offers.

On the opposite end of the spectrum, Livingston County experienced the smallest percentage increase in overall health insurance coverage between 2010 and 2015 at 1.4 percent; 93.3 percent of the residents there had coverage in 2015. While Livingston County also had the lowest increase in private health insurance coverage regionally in that time frame, it experienced the largest increase in public health insurance coverage at 28.2 percent.  In 2015, 24.4 percent of those with health insurance coverage in Livingston County had public health insurance coverage; this translates to about 44,800 residents. Majority of those in Livingston County between the ages of 18 and 64 in 2015 with public coverage were not in the labor force (56%); 36 percent of that population was in the labor force and 8 percent was unemployed.

PcntChng_Insured_2010-2015_JPEG

PcntChng_Private_2010-2015_JPEG

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When examining the child population regionally, there was no increase in the percentage of children uninsured in Livingston County. Washtenaw County experienced the largest decrease at 30.6 percent. In 2015 2.5 percent of Washtenaw County’s child population was uninsured; this was equivalent to about 1,700 children. Wayne County, which hosts the city with the largest percentage of uninsured children regionally (Hamtramck) experienced about a 25 percent decrease in the percentage of uninsured children. In 2015 in Wayne County about 16,700 children, or 4 percent of the County’s child population, was without health insurance.PcntChng_Under18_2010-2015_JPEG

In examining this data we see that since the enactment of the Affordable Care Act thousands of residents throughout Southeastern Michigan have been granted more access to health care. According to a New York Times article, those who benefited the most from the Affordable Care Act were those between the ages of 18-34, those living in rural areas and those who are black and Hispanic. In Wayne County, which had the biggest overall percentage increase in insured residents about 25 percent of the population in 2015 was between the ages of 18-34 and about 40 percent of the population was black and about 6 percent of the population was Hispanic. It was also noted in the article that those with lower incomes tended to benefit more from the Affordable Care Act.

Hamtramck has Highest Percentage of Residents, Children Without Health Insurance in Southeastern Michigan

In Michigan, majority of residents have a form of health care coverage, but the kind of coverage often varies. In Southeastern Michigan, the majority of the region has some type of private health care coverage, but there are several municipalities where majority of the residents depend upon public coverage. According to the Michigan Department of Health and Human Services there are several publicly funded medical assistance programs offered to residents, depending on their age, income, financial resources and other requirements. Public health insurance programs in Michigan include Medicaid, Healthy Michigan Plan and the Children’s Health Insurance Program.

For this post the percentage of residents covered by health insurance is examined, as is the percentage of residents with private or public insurance plans.

 

Percent with Health Insurance_JPEG

Throughout Southeastern Michigan health care coverage for residents ranges from 78 to 100 percent, with only about 15 municipalities having 96 percent or more of its residents having coverage, according to the American Community Survey conducted by the Census. Of these 15 municipalities, most are located in Oakland and Washtenaw counties. Overall, in Oakland County 92 percent of residents had health insurance coverage in 2015, and in Washtenaw County 94 percent of the population had coverage. In Oakland County Bloomfield Hills and Lake Angelus had the highest percentage of coverage at 99 percent, and in Washtenaw County, Dexter had the highest rate of coverage at 97 percent. At the opposite end Hamtramck had the lowest percentage of residents with coverage—77 percent. Put differently, 23 percent had no coverage. In Detroit about 17 percent of the population had no health insurance coverage in 2015.

Percent Uninsured Under 18_JPEG

Regionally, Livingston and Washtenaw counties had the highest percentages of residents on private health insurance at 83 and 82 percent. In Washtenaw County more than half of the municipalities had above 85 percent of its residents on private health insurance. In Wayne County, 58 percent of the residents had private health insurance and only a handful of communities (Grosse Ile, Northville Township and the Grosse Pointes) had more than 85 percent of its residents on private health insurance. On the opposite side of the spectrum, there were five communities in Wayne County where 50 percent or less of the population had private health insurance.

Percent with Private Health Insurance_JPEG

The map below somewhat mirrors the map above, showing the percentage of residents with public health insurance, as opposed to private. With cities like Detroit, Highland Park and Hamtramck having some of the lowest percentages of private health insurance, it should only make sense that they had among the highest percentages of residents with public health insurance. Highland Park had the highest percentage of residents on public health insurance at 62 percent; Ecorse followed with 60 percent of its residents on public health insurance. Detroit and Hamtramck each had 55 percent of their residents on public health insurance.

Percent with Public Health Insurance_JPEG

Clearly there is a major divide running through Southeastern Michigan on who gets health insurance and where it comes from. Generally higher income communities have more coverage and a higher proportion comes from the private sector. Lower income communities depend heavily on various public sector programs, and many residents still do not have health care coverage. Clearly these lower income citizens and communities would be severely harmed by proposals to cut public health care programs.