UNC Charlotte Urban Institute Reports Poverty Rates Decline In Charlotte Region
Newly released data from the American Community Survey (ACS) reveals a notable decline in poverty rates across Charlotte and its neighboring regions. Among the 14 counties surveyed, an impressive 60% experienced statistically significant decreases in poverty, outperforming the national average where approximately 36% of counties witnessed such changes.
Utilizing a five-year average, the ACS offers more stable estimates of income, poverty, and socioeconomic indicators. The data spans the period from 2018 to 2022 and includes smaller population areas like Anson County (population 22,000).
The ACS gauges poverty by comparing family and individual income, encompassing earnings and cash benefits, against a predetermined poverty threshold based on family size and income. In 2022, the threshold for an individual under the age of 65 was $15,225, reflecting an increase from $11,756 in 2017, though this figure is uniform nationwide and does not adjust for the cost of living.
Poverty rates in the region vary from approximately seven to twenty percent. Union County boasts the lowest poverty rate at 6.9%, while Anson County exhibits the highest at 19.3%. Cleveland and Chester Counties closely follow, both exceeding 18%. The average county rate among the 14 counties stands at 12.7%.
Over the past five years, the poverty rate has meaningfully decreased, with almost two-thirds of the counties experiencing a statistically significant drop compared to the previous five-year estimate (2013-2017). On average, poverty rates decreased by 3.65%, with Lincoln County leading at 5.9% and Gaston County at 4.1%.
This contrasts sharply with the preceding decade, where only Mecklenburg and Lancaster Counties witnessed a decline in poverty rates between 2008-2012 and 2013-2017. Notably, Anson and Stanly Counties exhibited little or no change in poverty rates over the past decade, although some lower-population counties, like Scotland, did observe a statistically significant decrease.
Census data indicates a significant increase in median household incomes since 2017. ACS data reveals that, on average, nominal median household incomes in the region rose from $49,603 to $67,407.
A distinctive pattern emerges as all counties experiencing a statistically significant decrease in poverty rates are adjacent to Mecklenburg County. This suggests spillover effects from increased urbanization and population growth contributing to lower poverty rates. Factors such as newcomers having higher incomes and a 37% average increase in nominal median household incomes between 2017 and 2022 in these counties further support this trend.
While nationwide urban, rural, and suburban counties have witnessed decreases in poverty, one-year ACS data implies a potential slowdown or decrease in income growth at the national level. This could result in decreasing household incomes or lower wages, potentially leading more families back into poverty in the future.
While declining poverty rates are undoubtedly positive, it is essential to consider income distribution. Research on social and economic mobility emphasizes that efforts are required to ensure widespread prosperity accompanies these improvements. Simply put, a rising tide must lift all boats.