Let’s explore Median Income Across America.

There is a lot of income disparity in the US, even at the state level.  The top four states have a median income that is about twice that of the bottom four states
(over $100,000 versus about $50,000) – this according to the US Census Bureau’s American Community Survey 2023.

If we divide the country into 8 equal income ranges – each having 6 or 7 states the ranges are less than $62,000, 62 to 70, 70 to 72 and a half,
72 and a half to 75 and a half, 75 and a half to 78, 78 to 89, 89 to 95 and a half and then those making  more than $96 thousand. 

When instead we divide the median income by groupings of $10,000 you will notice that there is a nice bell curve distribution –
with most states having a median income in the middle (in the 70s) with 15 states making less and 19 states making more.

It is important to note that Median Income is about $20,000 lower than average income in the US and that is
because there is so much variation in income in a given state.

If everyone makes about the same amount of money, then there is very little difference between the median and the average. 
For example, if there were 5 households in an area making 48, 51, 52, 56 and 58 thousand dollars then the median household
income would be 52 (that’s the middle amount).  And the average would be $53.  But if the highest income instead of being 58
was 158 then the median is still 52 but the average is now 73 – but in fact the other 4 households are still living with exactly
the same income even though the average for their area went way up.  That’s why we prefer to look at median incomes.

It’s easy to run data reports about income, educational attainment, family structure, households and hundreds of other variables
with GeoLytics demographic data products – like our American Community Survey or our Estimates and Projections. 

Some of these income differences account for the cost of living, especially the cost of housing differences. 

So next time on “Let’s Explore Data with GeoLytics” we will look at the differences in Housing Costs across America.