Poverty, Unemployment Rates Higher for Young Adults in Detroit than City’s Overall Rates

In the City of Detroit the percentage of young adults (categorized as 16 to 34-year-olds in this post) living at or below the poverty level in 2015 was 42 percent, with the labor force participation rate for that same age group being 64 percent and the unemployment rate being 35 percent. Two out of three of these rates were above those for the City of Detroit overall. In 2015 the percent of all Detroit residents (including children) living below the poverty level was 40 percent, the labor force participation rate was 63 percent and the unemployment rate was 13.2 percent.

While the trend for these above mentioned rates for the young adult population was to be above the overall rates for the City, a deeper look at the rates showed they varied across Census Tracts in the City. For example, Census Tracts with the highest percentage of young adults living in poverty were along Grand River on the West Side and along Gratiot on the east side of the City. On the east side of the City, majority of the Census Tracts had between 50 and 90 percent of young adults living at or below the poverty level. Fortunately some of these same Census Tracts had among the lowest populations of young adults living there, with several having between 46 and 452 young adult residents residing in each Census Tract.

In the northeastern portion of the City, there were about a dozen Census Tracts with among the highest number of young adults living there, with numbers ranging between 667 and 1,742. These Census Tracts also had some of the highest labor force participation rates, as did a pocket in the western portion of the City of Detroit, along with several other pockets throughout the City. The tracts with the low labor force participation rates (29-48 percent) were frequently the same ones that had the highest percentage of young adults living at or below the poverty level; these Census Tracts are just east of Hamtramck. An individual is considered part of the labor force if they have a job or are actively seeking one. The labor force participation rate is the percentage of adults who are members of the labor force.

Two of these Census Tracts just east of Hamtramck also had among the highest unemployment rates for young adults, ranging between 59 and 89 percent. Overall in the City there were only 20 Census Tracts where between 59 and 89 percent of young adults were unemployed. Again, some of the tracts arrayed along Grand River on the west and Gratiot on the east had very high unemployment rates.

There are some tracts where high poverty, labor participation and unemployment rates overlap, but this is not the case for a majority of the Census tracts. At the same time the data tend to indicate a larger percentage of young adults are unemployed and, thus, living in poverty than the overall Detroit population. Clearly, getting more young adults employed must be a very high priority, and given that the national rate of unemployment is approaching 4 percent, there should be opportunities to connect these young adults to the labor market. Clearly it should be a priority to target job development and training programs to areas near Central High School along Grand River, as well as along Gratiot and in the Osborn and Demby areas.

Distribution of Public Assistance Benefits Often Overlaps in Detroit

In examining Census data from 2015 we see that households throughout Detroit receive various forms of public assistance, in addition to incomes such as retirement, social security, and/or supplemental social security. The data presented in this post shows that, often, Census tracts with a higher percentage of households that received a retirement income had lower percentages of households that received public cash assistance and/or food stamps.

When examining the retirement income map the data shows that the Census tracts with the highest percentage of households that received retirement income were in the northern and western portions of the City. In addition, there was a handful of Census tracts east of Woodward Avenue with upwards of 34 percent of households earning a retirement income. Conversely, there were more than 80 Census tracts, primarily located southwest of Highland Park and Hamtramck, where less than 17 percent of the households receive a retirement income.

There were 29 Census tracts in Detroit where 44.9 percent or more of households relied on Social Security as part of their income and, on the opposite side of the spectrum there were about 40 Census tracts where 22.9 percent of those households, or less, relied on Social Security as part of their income. There was often an overlap in Census tracts with the highest percentages of households receiving retirement income and the highest share of households on on Social Security. But, there were differences across these maps as well. For example, many parts of Southwest and Midtown had both large percentages of residents receiving both retirement income and Social Security.

There was less of an overlap on Census tracts with the highest percentage of households receiving Social Security and tracts where many residents received Supplement Social Security benefits. In order to be eligible for Supplemental Social Security an individual must be: age 65 or older, blind or disabled and have a limited income and resources. Additionally, there was an overall higher percentage of households receiving Social Security benefits than Supplemental Social Security benefits. The Census tract with the highest percentage of households receiving Supplemental Social Security had 36.2 percent of households receiving Supplemental Social Security, while the highest tract for Social Security was  54.8.

The areas in which there was the overlap for the highest percentages of households receiving a certain income or benefit was in the Census tracts where for households receiving public cash assistance and food stamps. For example, there was a cluster of Census tracts along and to the east of Gratiot where up to 20.7 percent of households received cash assistance and up to 77.4 percent of households received food stamps. The data indicate that in 19 tracts between 60.4 and 77.4 percent of the households receive food stamps, and in over 80 tracts between 49.4 and 60.3 percent of residents receive food stamps. To be eligible for food stamps a family of four cannot earn more than $31,240 a year. In order to be eligible for public cash assistance an individual must have a child, have under $3,000 in cash assets and under $25,000 in property assets. The thresholds that households must meet to receive both types of these forms of government assistance, showcases how, particularly in the red colored Census tracts, incomes are among the lowest.

Overall, this post highlights how households in the City of Detroit rely on various forms of benefits and incomes. Clearly there are many retired households living on either retirement income or social security. These households are often, though not always in the same general neighborhoods. People that rely on food stamps and public assistance sometimes overlap with these neighborhoods, but they often concentrate in other areas. There are also areas—often including Downtown,  Midtown, East Jefferson and the far west neighborhoods–where far fewer households rely on any form of retirement income or public benefits.

 

 

Majority of Michigan’s Largest Woman Owned Businesses in Southeastern Michigan

The map below shows where Southeastern Michigan region’s largest women owned businesses in 2016 are located, according to data made available by Crain’s Detroit. The data set used for this post lists the top 40 women owned businesses in the State of Michigan, according to revenue; not all 40 were located in Southeastern Michigan. In total 15 of the state’s largest women owned businesses were located in Wayne County, 14 were located in Oakland County and five in Macomb County.

Of the businesses located in Southeastern Michigan, Ilitch Companies, based in Detroit, had the highest revenue in 2016 at an estimated $3.1 billion with about 6,200 employees. This business became principally controlled by a women, Marian Ilitch, in 2016 after the passing of Mike Ilitch. Detroit Manufacturing Systems LLC, located in Detroit came in second on the list with an estimated $1 billion earned in revenue in 2016 and about 1,040 employees, according to Crain’s Detroit.

 

The top five women businesses on the list were as follows:

  • Ilitch Companies (Detroit): $3.1 billion; 6,200 employees
  • Detroit Manufacturing: $1 billion (Detroit); 1,040 employees
  • Dakkota Integrated Systems LLC (Holt): $734 million; 836 employees
  • RKA Petroleum Co Inc (Romulus): $458 million; 796 employees
  • Strategic Staffing Solutions (Detroit): $350 million; 527 employees

While the map above highlights the largest women owned businesses in Southeastern Michigan, another report, according to a recent DailyDetroit.com, highlights how the entrepreneurial scene for women is also expanding in the region. According to the article, Detroit’s women owned businesses grew about 12 percent between 2006 and 2017. While such statistics can initially paint a rosy picture for the Southeastern Michigan business market, our last post shows there is still room for economic growth in the region.

Metro-Detroit Business Indicators Show Increase in Vacancies

This post focuses in on key business climate indicators in the Detroit Metro area. We examine retail rental rates, the changes in these rates, vacancy rates for both retail and industrial property, and employment by sector.

 

The two charts above describe the per square foot cost of retail rental space, and the change in that cost throughout the Detroit metropolitan region. In the first quarter of 2017 the City of Troy had the highest retail rental costs per square foot at $22.45, according to Marcus and Millichap. Troy also had a 10 percent increase from the first quarter of 2016. While the City of Troy did experience one of the larger retail rental cost increases over the last year, it was the Downriver area that experienced the largest increase. Between the first quarter of 2016 and the first quarter of 2017 there was a 14 percent rental cost increase in the Downriver area. By the first quarter of 2017 retail rental space cost $11.71 per square foot in Downriver; this was the lowest cost in the region.

Overall, the average retail rental cost per square foot in the Metro region was $12.94.

With retail rental costs the highest in the Troy area it is no surprise that that area in the region had the lowest vacancy rate at 2 percent during the first quarter of 2017, according to Marcus and Millichap. On the opposite side of the spectrum, Southfield had the highest retail vacancy rate at 12.1 percent; the cost of retail rental space per square foot in Southfield during the first quarter of 2017 was $13.39.

The overall retail space vacancy rate in the Metro region during the first quarter of 2017 was 6.8 percent.

Compared to retail space vacancies (6.8%), overall there were lower industrial vacancy rates (an average of just over 2%) throughout the region. The Royal Oak/Southfield area had the highest vacancy rate in the first quarter of 2017 at 5.5 percent while the Eastern section of the Metro region had the lowest rate at 1.7 percent, closely followed by the Troy area and Washtenaw. The highest industrial vacancies were in the Royal Oak-Southfield area.

In June of 2017, according to the data from the U.S. Postal Service, there were 7,932 total vacant business addresses in the City of Detroit; this number is a 324 vacancy increase from June of 2016. Overall, the business address vacancy rate in the City of Detroit was 27.5 percent in June of 2017; there were a total of 28,844 reported business addresses. The maps above show by Census Tract where the highest and lowest business address vacancies were by both number and percentage. In total, as shown in the first map, the Southwest Detroit region along the Detroit River had the highest number of business address vacancies. The Census Tract with the highest number of vacancies was located in that area; there were a reported 314 business vacancies in one Census Tract.

In addition to the Southwest Detroit cluster of high business address vacancies there was also a cluster just west of Highland Park and another cluster along M-53. While these clusters did not have as high of business vacancy numbers as Southwest Detroit, in several cases, Census Tracts in these clusters had higher percentages of business vacancy rates. For example, in a Census Tract just east of M-53, there was a business address vacancy rate of about 59 percent; this was the highest percentage in the City of Detroit in June of 2017.

Overall, this data shows that business vacancies are increasing overall in the City, but the higher percentage of vacancies tend to be located in business and industrial districts outside of Downtown Detroit.

According to information from the Bureau of Labor Statistics (BLS) , during the first quarter of 2017 Wayne County had the highest average weekly wages at $1,266 while St. Clair County had the lowest at $854.

The BLS does not include Washtenaw and Monroe counties in their Metro-Detroit Economic Summary updates, which is why they are not included in the chart above.

According to the BLS, the professional and business sector in the Metro-Detroit region had the highest number of employees at 408,800 while the information sector had the lowest number of employees at 28,300. The trade, transportation and utilities sector had the second highest number of employees at 367,700. The manufacturing industry had 249,400 employees, and the government sector had 173,900 employees.

Poverty, Labor Force Participation Moderately Correlated in Southeastern Michigan

As discussed throughout our most recent series, data about labor force participation highlights decreasing percentage of individuals who are not active participants in the work force. To further explore the recent labor force and poverty rate discussions, this post delves into the correlation between the 2015 labor force participation rate and the 2015 poverty levels across the Southeastern Michigan area.

A correlation is statistical technique that can be used to describe the relationship between two variables. The correlation coefficient, often expressed as ‘r’, is a numerical value that is always between +1 and -1. When r is closer to +1, it implies a positive correlation; as one variable increases, the other does as well. When r is closer to -1, it implies an inverse correlation; as one variable increases the other decreases. When the value of r is closer to 0 the implication is that there is no relationship between the two sets of data.

Looking across the region we find that labor force participation with poverty at a level of -0.46, a moderate correlation. (Note that we are using municipalities as the unit of analysis here.) This correlation tends to indicate that as labor force participation declines, poverty increases, all other factors being equal. This helps to explain why we are seeing increasing poverty in areas, including many suburban areas, where labor force participation was hit hard by the Great Recession.

 

We also examined the variation in this correlation across the counties in the region.

 

Correlation Coefficients for Southeastern Michigan Counties: Labor Force Participation and Poverty

  • Livingston County: -.4
  • Macomb County: -.24
  • Monroe County: -.18
  • Oakland County: -.28
  • St. Clair County: -.18
  • Washtenaw County: .08
  • Wayne County: -.84

These results present correlations calculated across municipalities within counties. We found that, aside from Washtenaw County, every other county in Southeastern Michigan had a negative correlation, meaning that as labor force participation declined, poverty increased. Of those six counties, Wayne County was the only one to have a strong negative correlation—(-0.84). This implies that municipalities in Wayne County with lower labor participation are very likely to have higher levels of poverty.

 

The correlations for five other counties–Macomb, Livingston, St. Clair, Monroe and Oakland–were negative but weak or moderate, meaning that there was still a tendency for poverty to increase with a lower labor participation rate, but it was weaker.

 

Washtenaw County was the only county in the region to have a correlation coefficient above 0, the value being +0.08, indicating a very low positive association between poverty and labor force participation.

 

Overall, these analyses show that six of the seven counties had weak to moderate correlation between their labor participation rates and their adult poverty rates. Wayne County was the exception to this, with a strong correlation coefficient of -0.84. Previous posts have shown that Wayne County communities also experienced some of the largest decreases in its labor force participation rates since 2010 and had some of the highest overall adult poverty rates. For example, in 2015 Highland Park had the lowest adult labor force participation at 54 percent, while the poverty rate is 49.3 percent.

 

In the suburbs, particularly those located nearer to Detroit (with some notable exceptions), there have been overall declines in labor force participation rates. At the same time data clearly shows that the percentage of adults in poverty has been increasing for many of the suburbs in Southeastern Michigan in recent years.

Strong Correlations Exist For High Education Levels and High Incomes Throughout Most of Southeastern Michigan

In our last post we showed there is an area of overlapping high median incomes and high educational attainment running through Washtenaw County, western Wayne County, southern Oakland County and western Macomb County with nearly the opposite—lower median income and lower educational attainment–south of that in the region. In this post, we discuss explicitly the correlation between the levels of education examined in the last post (less than high school education, high school education, associate’s degree or some college education, bachelor’s degree, and graduate/professional degrees) and median incomes. The correlations are calculated for medians and percentages of municipalities across the region.

A correlation is statistical technique that can be used to describe the relationship between two variables. The correlation coefficient, often expressed as ‘r,’ is a numerical value that is always between +1 and -1. When r is closer to +1, it implies a positive correlation; as one variable increases, the other does as well. When r is closer to -1, it implies an inverse correlation; as one variable increases the other decreases. When the value of r is closer to 0 the implication is that there is no relationship between the two sets of data.

Educational Attainment Correlation Value
Achieved less than a high school diploma -0.74
Achieved only a high school diploma -0.71
Achieved some college or an associate’s degree -0.57
Achieved only a bachelor’s degree 0.75
Achieved a graduate or professional degree 0.77

 

Looking first across the region incomes tend to be lower for those municipalities with a higher percentage of people who do not have a high school degree, with a correlation of -0.74. This tends to indicate that less education leads to lower incomes. At the same time, it could mean that people with lower incomes have less of chance of completing their education. For those with a high school diploma the effect was slightly smaller, with a correlation of -0.71, and similarly for those with some college or an associate’s degree the correlation was -0.57.

For those at the upper end of education distribution the opposite holds true—there is a positive correlation between higher educational levels and higher incomes. Across Southeast Michigan for the municipalities with a higher percentage of people with a bachelor’s degree, incomes tend to be higher, with a correlation of 0.75. The relationship between income and educational attainment is even stronger for those who have attained graduate or professional degree, with a correlation of 0.77.

Next we examined these relationships at the county level—for all municipalities in a county. Of the seven counties in the region, Wayne County had the strongest correlations of (0.91) in relation to those with bachelor’s degrees and the median income. For those with graduate or professional degrees in Wayne County the correlation was 0.90 percent.  Monroe County had the weakest correlation value between those with bachelor’s degrees and the median income, with a correlation value of 0.22; it also had the weakest correlation between income and those with graduate or /professional degrees, with a correlation value of at -0.13 percent. Such values for Monroe County indicate that the relationship between higher levels of education attainment and higher median incomes are weakened or reversed in that largely rural setting. For several of the other counties, the correlation between these variables was much greater. In addition to Monroe County having a weak relationship between median income and those with a bachelor’s degree, there was also a weak relationship between those same two variables for St. Clair and, surprisingly, Washtenaw counties. For Washtenaw, it may occur because there are many students with higher education who are still pursuing degrees and have relatively lower incomes.

At the other end of the education spectrum, there exist a strong tendency for lower incomes to be associated with lower levels of education. Each county has either a moderate to strong correlation between incomes and lower levels of education. Monroe County again had the lowest correlations between median income and educational attainment for attainment, this time for less than a high school education and up to a high school education.

Overall, these analyses show a range of correlations across counties between higher median incomes and higher levels of educational attainment, some high and positive, others weak. Monroe County stands out as the only county one where there was a weak correlation between median income and all levels of educational attainment. It could be speculated this is because it is a more rural county and much of the work there relates to agriculture, work that is often learned at home within families.  In southeastern Michigan as a whole, there are relatively strong positive and inverse correlations between incomes and education attainment. There is a positive correlation between those who have achieved a graduate or professional degree and incomes–people with higher education tend to have higher incomes.  There is an inverse relationship between those who have not achieved a high school diploma and incomes–those with less education tend to have lower incomes.

Median Income, Educational Attainment Highlight Segregated Classes in Southeastern Michigan

Using Census data, this post examines the visual correspondence between income and educational attainment across the region. It clearly portrays the continuing association between these two critical variables with one region of high income and high educational achievement arching across the region from Washtenaw County, through Western Wayne County and up through Oakland County and western Macomb County. South of this is a region of lower income and educational attainment with a few islands of higher income and achievement. In all, this represents a strong and largely consolidated portrait of segregated classes in this region.

In Southeastern Michigan the City of Highland Park had the lowest median income at $17,250, with 33 percent of the adult population only having a high school diploma. In terms of educational attainment in Highland Park, those who had some college education or an associate’s degree represented the highest percentage of residents, as opposed to the other categories (less than high school, high school education, bachelor’s degree, graduate or professional degree). On the opposite end of the spectrum, the City of Bloomfield Hills had the highest median income at about $173,000, with the largest percent of its adult population having a graduate or professional degree (38%). Such trends are not unique to Highland Park or Bloomfield Hills.

Above the maps show what the median income of each community is with an overlay that shows what the percentage of educational attainment is at five different levels. These levels are: graduate degree, bachelor’s degree, associate’s degree or some college, high school diploma or an equivalency and less than a high school diploma. The overall purpose of each map is to present an image on how educational attainment and at each level may, or may not, relate to the median income.

When looking at the maps above we see that the communities that have more than 18 percent of its adult population with graduate or professional degrees tend have median incomes above $77,000. In total, there were only 10 communities, out of 46, where more than 18 percent of its adult population had graduate or professional degrees but the median income was below $77,000. Of those 10 communities, the City of Ypsilanti had the lowest median income at about $31,000 and 18 percent of its adult population had a graduate or professional degree. The community with the highest percentage of adult residents with a graduate or professional degree  is Ann Arbor, where both the University of Michigan and the University of Michigan Hospital are located. The median income for Ann Arbor in 2015 was $103,000. There was no community in Southeastern Michigan where more than 30 percent of the adults had a graduate or professional degree and had a median income below $95,000.

On the opposite side of the spectrum, there are 154 communities in Southeastern Michigan where 10 percent or more of the adult population had less than a high school education in 2015. The City of Hamtramck had the highest percentage of adults without a high school education at about 31 percent; the City’s median income was about $23,000. There are nine communities in the region where 20 percent or more of the population had less than a high school education. Of those nine communities, with the exception of Lincoln Park, none had a median income above $33,000. The median income in Lincoln Park was $41,000 in 2015. The City of Detroit is included in that list of nine communities, with a median income of about $26,000 and about 22 percent of its adult population having less than a high school education. Additionally, in Detroit, about 32 percent of the adult population had a high school education, and about 32 percent had some college education or an associate’s degree.

The percentage of Detroit residents with a bachelor’s degree was far lower than any of the statistics mentioned above. In Detroit, about 8 percent of residents had a bachelor’s degree in 2015. In terms of the percentage of residents throughout Southeastern Michigan with a bachelor’s degree, the average percentage was 18 percent and the median income was about $66,000.

Regionally, the community with the highest percentage of residents with a bachelor’s degree was the Village of Grosse Point at about 62 percent; the city had a median income of about $139,000. The City of River Rouge had the lowest percentage of adults with a bachelor’s degree at about 4 percent; it had a median income of approximately $26,000. In total, there were 46 communities in Southeastern Michigan where less than 10 percent of the population had a bachelor’s degree. Exeter Township, located in Livingston County, had the highest median income of the 46 communities that had less than 10 percent of its adult residents with a bachelor’s degree. The median income in Exeter Township was about $68,000.

Overall, this post shows that there is a correlation between median incomes and educational attainment, a deeper conversation that we will dive into next week. The maps and the data show that it is the communities with the higher percentage of residents with a bachelor’s degree and/or a graduate degree that have amongst the highest median incomes.

Economy Continues to Improve in Southeastern Michigan

  • The unemployment rate increased at the State and local level (monthly);
  • Regionally, Livingston County’s unemployment rate was the lowest;
  • 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 increased throughout the summer. In June of 2017 the state unemployment rate was 4 and by July it rose to 4.9. While there was this increase during the summer months, unemployment rates were lower than those in the winter months, which peaked at 5.3 in February.

The City of Detroit unemployment rate peaked at 12.3 in January and has continued to decline since then. In June, for which the most recent data was available, the unemployment rate was recorded at 7.8, up slightly from 7.5 in May.

According to the most recent data provided by the Michigan Department of Technology, Management and Budget, the unemployment rate for the State of Michigan increased throughout the summer. In June of 2017 the state unemployment rate was 4 and by July it rose to 4.9. While there was this increase during the summer months, unemployment rates were lower than those in the winter months, which peaked at 5.3 in February.

The City of Detroit unemployment rate peaked at 12.3 in January and has continued to decline since then. In June, for which the most recent data was available, the unemployment rate was recorded at 7.8, up slightly from 7.5 in May.

The chart above displays the unemployment rates for each of the seven counties in Southeastern Michigan for June of 2016 and 2017. All but Monroe showed declines across June 2016 to June 2017. Wayne County had the highest unemployment rates for both 2016 and 2017 (6.7 and 4.5 percent, respectively). In 2017, Livingston County had the lowest unemployment rate at 2.7 while Washtenaw County had the lowest rate in 2016 at 3.9. Wayne and Monroe counties were the only two in the region with unemployment rates above 4 percent in 2017. In 2016 though, Washtenaw County was the only one in the region that had an unemployment rate below 4.

St. Clair County had the largest unemployment rate decrease between June 2016 and 2017 at 2.5; Monroe County had the lowest at 0.0.

Higher Percentage of Children in Poverty in Southeastern Michigan than Adults

In Southeastern Michigan there is a greater percentage of children under the age of 18 living in poverty in several communities than there is adults living in the same circumstances. Not only is this the case in the region, but also, the percentage of children living in poverty has increased at a more rapid rate since 2000 than it has for those between the ages of 18-64 and for those above the age of 65. This is sad state of affairs.

All data presented here is provided by the U.S. Census Bureau and according to the U.S. Department of Health and Human Services, the poverty threshold for an individual in 2015 was an annual earning of $11,770 and for a family of four it was $24,250.  In 2010 the poverty threshold for an individual was $10,830 and for a family of four it was $22,050. In 2000 the poverty threshold for an individual was $8,350 for a family of four was $17,050.

In the year 2000 the following five municipalities had the highest percentage of children under the age of 18 living in poverty:

  • Highland Park: 45 percent
  • Hamtramck: 36.4 percent
  • Ecorse: 34.9 percent
  • Detroit: 33.9 percent
  • River Rouge: 30.9 percent

In 2010 the municipalities with the highest percentage of children population living in poverty shifted to the following:

  • Highland Park: 58.5 percent
  • Hamtramck: 58.5 percent
  • Ecorse: 51.9 percent
  • Detroit: 46.9 percent
  • Memphis: 46 percent

By 2015 the percentage of children living in poverty had increased still further throughout the region, as can particularly be seen by the top five communities with the highest percentage of children living in poverty. These communities were:

  • Highland Park: 63.8 percent
  • Hamtramck: 62. Percent
  • Detroit: 57.1 percent
  • Inkster: 56.7 percent
  • River Rouge: 54.4 percent

 

Percent in Poverty Level Changes 2000-2010

Between 2000 and 2010 the LaSalle Township experienced the highest percentage increase of children residing in poverty at 28.4 percent. LaSalle, being a more rural suburban community in Southeastern Michigan, was not the only community with such characteristics to find itself atop the list with the highest percentage increases. Of the 46 communities that experienced more than a 10 percent increases in the percentage of children living in poverty between 2000 and 2010, 11 were inner-ring suburbs.  Detroit experienced a 13 percent increase in the percentage of children living in poverty between 2000 and 2010; Highland Park experienced a 12.8 percent increase and Hamtramck experienced a 22 percent increase. Overall, there were only 39 communities that experienced either no increase in the percentage of children residing in poverty or a decline in the percentage.

When comparing the increase in the percentage of children living in poverty between 2000 and 2010 we see that for both adults between the ages of 18-64 and those over the age of 65, neither group experienced an increase above 17 percent. For children under the age of 18, there were 12 communities where the increase in the percentage of children living in poverty was above 17 percent.

Percent in Poverty Level Changes 2010-2015

Between 2010 and 2015 there were 32 communities in Southeastern Michigan where there was more than a 10 percent increase in percentage of children living in poverty. Of these communities, the top five were nearly all more rural, suburban communities. These communities were:

  • Richmond (city): 35.2 percent
  • Belleville: 24 percent
  • St. Clair: 23.3 percent
  • Melvindale: 23.2 percent
  • Sumpter Township: 21.7 percent

Percent in Poverty Level Changes 2000-2015

Between 2000 and 2015 there were 64 communities in Southeastern Michigan that experienced over a 10 percent increase in the percentage of children living in poverty since 2000 and 173 communities that experienced an increase above 0.01 percent. The top five communities with the largest increases were:

  • Richmond (city): 31.6 percent
  • Inkster: 28.6 percent
  • Royal Oak Township: 28 percent
  • Sumpter Township: 27.6 percent
  • Eastpointe: 26 percent

During this time span we do see that there is a greater number of inner-ring suburbs that experienced increases above 10 percent than there were during the 2000 to 2010 time frame. However, as the map shows above, the suburbs were not protected from the, in some cases drastic, increases in the percentage of children living in poverty.  And, just as the increases were drastic for several communities throughout Southeastern Michigan, they were also far greater than the percentage increases of adults between the ages of 18-64 and those above 65 living poverty during the same time period. For those between the ages of 18-64 the highest percentage increase of those living in poverty was River Rouge at 21 percent. For those above the age of 65 the City of Hamtramck experienced the largest increase at 13.5 percent.

Overall, the data presented in this post conveys two strong messages: Southeastern Michigan has a greater percentage of children living in poverty than adults and the elderly, and the percentage of children living in poverty has been increasing at a faster rate than the adults living in the region. Additionally, the data presented in this post again shows the theme that poverty levels aren’t only increasing in the region’s urban areas, but also in the suburbs and more rural areas.

Southeastern Michigan Suburbs Experience Highest Poverty Increases for Elderly

Since the year 2000 several municipalities in Southeastern Michigan have had consistently the highest percentages of residents over the age of 65 living at or below the poverty level–Highland Park, Hamtramck, Detroit. Remarkably, however, as this post demonstrates the biggest increases in poverty among older adults were in suburbs.

At the same time, the percentage of elderly residents living below the poverty line in Southeastern Michigan municipalities is below that of those between the ages of 18-64 living in poverty. Regionally, in 2015 about 10.3 percent of residents between the ages of 18-64 lived in poverty and about 6.5 percent of residents over the age of 65 and older lived in poverty.

All this poverty data is provided by the U.S. Census Bureau while the U.S. Department of Health and Human Services tell us the poverty threshold for an individual in 2015 was an annual earning of $11,770 and for a family of four it was $24,250. In 2010 the poverty threshold for an individual was $10,830 and for a family of four it was $22,050. In 2000 the poverty threshold for an individual was $8,350 for a family of four was $17,050.

In the year 2000 the following five municipalities had the highest percentage of residents over the age of 65 living in poverty:

 

 

  • Royal Oak Charter Township: 32.1%
  • Highland Park: 28.8%
  • Memphis: 19.4%
  • Detroit: 17.9%
  • Hamtramck: 17.4%

 

In 2010 the municipalities with the highest percentage of elderly living in poverty shifted to the following:

 

  • Hamtramck: 28.6%
  • Highland Park: 26.1%
  • Oak Park: 23.1%
  • Hazel Park; 22.6%
  • Center Line: 21.9%

Most recently, in 2015, we again saw several of the same municipalities in Southeastern Michigan having the highest percentage of elderly living at or below the poverty line. By this time the percentage of elderly in poverty had continued to increase for several of the municipalities.

  • Highland Park: 38.6%
  • Hamtramck: 30.7%
  • Detroit: 20.4%
  • Melvindale: 19.5%
  • Madison Heights: 17.2%

Percent in Poverty Level Changes 2000-2010

Between 2000 and 2010 the only inner-ring suburb that ranked in the top five for Southeastern Michigan municipalities with the highest increase in the percentage of elderly living at or below the poverty line was Hamtramck. The top five municipalities that experienced the highest change in those 10 years were:

  • Yale (St. Clair County): 15.6%
  • Hazel Park (Wayne County): 15.1%
  • Brighton (Livingston County): 13.9%
  • Marion (Livingston County): 13.1%
  • Lynn Township (Livingston County) 12%

From 2000 through 2010 for the 213 municipalities for which comparable data was available through the American Community Survey, 84 experienced a decrease in the percentage of residents over the age of 65 living in poverty. On the opposite side of the spectrum, about 20 of the communities that experienced an increase in the percentage of elderly living in poverty were direct suburbs of Detroit. However, between 2000 and 2010, Detroit experienced only a 0.7 increase in the percentage of elderly living in poverty. Highland Park, which has typically ranked at the top for the percentage of residents living in poverty and for percentage increases, experienced a 2.7 percent decrease in the percentage of elderly residents living in poverty between 2000 and 2010.

Percent in Poverty Level Changes 2000-2015

Between the years 2000 and 2015, the increase in poverty among older residents was on par with the increases experienced for several municipalities between the years 2000 and 2010. During this time period, the City of Hamtramck experienced the largest increase at 13.5 percent, followed by Berlin Township (St. Clair County) and Melvindale. These were the only three communities in Southeastern Michigan that experienced increases above 10 percent in the percentage of elderly residents living in poverty. Additionally, there was an overall increase in the number of communities between 2000 and 2015 that experienced a decrease in the percentage of residents over the age of 65 living in poverty. Of the 213 municipalities for which comparable data was available, 94 experienced a decrease. However, Highland Park experienced about 9 percent increase in the percentage of older residents residing in poverty between 2000 and 2015, and Detroit experienced about a 2.5 percent increase. Still the remarkable trend was the tendency for poverty among older adults to increase in the suburbs.

Percent in Poverty Level Changes 2010-2015

Between 2010 and 2015, Highland Park experienced the largest increase in the percentage of residents over the age of 65 living in poverty. During this time frame, Highland Park experienced an increase of about 12.5 percent; Berlin Township followed with an increase at about 10.8 percent. These two communities were the only ones in the region that experienced increases for the percentage of residents over the age of 65 living in poverty above 10 percent between 2010 and 2015.

Additionally, between 2010 and 2015, the number of communities that experienced a decrease in the percentage of elderly residents living in poverty decreased. In total, of the 213 communities for which data was available for, 102 experienced a decrease in the percentage of residents living in poverty.

Overall, this post shows that currently, and overtime, there is a smaller percentage of resident over the age of 65 living in poverty. Compared to last week’s post, which focused on those between the ages of 18-64 (typically those of working age) we see that there is a higher percentage of residents between the ages of 18-64 living in poverty and that those percentages across the region have increased for those in that age bracket. For the elderly population though, the percentage of residents residing in poverty has increased overtime for a number of municipalities, but majority of the region experienced a decrease.