Areas of concentrated poverty ppt - Metropolitan Council

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What do the latest ACS data tell us? Community Development Committee Areas of Concentrated Poverty 2/5/2018

Transcript of Areas of concentrated poverty ppt - Metropolitan Council

Page 1: Areas of concentrated poverty ppt - Metropolitan Council

What do the latest ACS data tell us?

Community Development Committee

Areas of Concentrated Poverty

2/5/2018

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• Census tracts where 40% or more of residents are living with incomes below 185% of the federal poverty threshold:

– Family of four: Income under $45,442 in 2016– One person living alone: Income under $22,622 in 2016

• A subset are Areas of Concentrated Poverty where at least half the residents are people of color (ACP50):

– Related to what HUD calls “Racially/Ethnically Concentrated Areas of Poverty” (R/ECAPs)

What are Areas of Concentrated Poverty (ACPs)?

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• Place-based dimension of disparities

• Research shows that growing up in high-poverty neighborhoods constrains life chances

• Risk of disinvestment by public and private sectors

• Can affect tax bases

Why do ACPs matter?

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Poverty context

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• Among those whose income is less than 185% of the federal poverty threshold:– Almost half identify as White, non-Latino– 80% have a high school diploma; nearly 20% have a college degree (among those age

25+)– Two-thirds have worked in the past year, but just one-fifth work full-time, year-round

(among civilians age 16-64)

• Where do they get their money?– 68% of income comes from wages, salaries, or self-employment– Only 2% is from public assistance

Who are people in poverty?

Source: U.S. Census Bureau, American Community Survey Public Use Microdata Sample (2012-2016)

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What share of people are below 185% of poverty?

Source: U.S. Census Bureau, 2000 Census and American Community Survey one-year estimates

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What share of people are below 185% of poverty?

15.8%

20.7% 21.8%

2000 2006-2010 2012-2016(These are the time periods available for census tract data.)

Source: U.S. Census Bureau, 2000 Census and American Community Survey five-year estimates. The poverty rate is the share of residents whose individual or family income is less than 185% of the federal poverty threshold.

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Where are Areas of Concentrated Poverty?

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Areas of Concentrated Poverty have grown rapidly since 2000

60

81 84

115 18

2000 2006-2010 2012-2016

Cen

sus

Trac

ts

Minneapolis and Saint Paul Outside Minneapolis/Saint PaulSource: U.S. Census Bureau, 2000 Census and American Community Survey five-year estimates. The highlighted census tracts are those where at least 40% of residents have incomes that are less than 185% of the federal poverty threshold.

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Concentrated poverty is growing20002006-20102012-20162012-2016 ACP50s

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Have ACPs peaked?

22.2%

27.7% 29.5% 29.5% 30.8% 31.1% 31.3% 30.7% 29.8%19

.6%

21.0

% 25.6

%

24.8

%

25.1

%

25.0

%

24.4

%

25.3

%

24.8

%

% o

f reg

ion’

s re

side

nts

in

pove

rty w

ho li

vie

in…

ACPsACP50s

Source: U.S. Census Bureau, 2000 Census and American Community Survey five-year estimates.

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How are Areas of Concentrated Poverty changing (or persisting)?

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• Sharp increase in poverty– 24.7% in 2006-2010– 49.2% in 2012-2016

• Population is getting younger, more racially/ethnically diverse, and more likely to rent

Columbia Heights: A new ACP50 tract

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• Declining poverty– 46.3% in 2006-2010– 30.5% in 2012-2016

• Increasing home values and rents

• Suggestion of an increasingly White population

Minneapolis: One tract is no longer an ACP

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Some ACPs are more persistent

6 ACS datasets4 – 5 ACS datasets2 – 3 ACS datasets1 ACS datasetNo ACPs

ACP50s

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Why are ACP50s so persistent?Which mortgages could be insured?

With today’s ACP50s

With today’s ACPs

Source: Metropolitan Council digitization of 1934 Home Owners’ Loan Corporation neighborhood appraisal map; U.S. Census Bureau, 2012-2016 American Community Survey five-year estimates. The highlighted census tracts are those where at least 40% of residents have incomes that are less than 185% of the federal poverty threshold.

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Why are ACP50s so persistent?

7.9%

28.4%

20.7%

9.8%

17.3%

37.6%

23.8%

12.3%

9.4%

11.9%

2.7%

0.3%

46.6%

39.3%

32.0%

Not ACPs

Other ACPs

ACP50s

HOLC classification of acreage (MPLS and STP)

Type D: Hazardous Type C: Definitely Declining Type B: Still Desirable Type A: Best Non-residential

Source: Metropolitan Council digitization of 1934 Home Owners’ Loan Corporation neighborhood appraisal map; U.S. Census Bureau, 2012-2016 American Community Survey five-year estimates.

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Policy Implications• What are the investments – both the Council’s and beyond the Council’s alone –

that these communities need to turn around past history?

• Where are we prioritizing transportation investments?

• Where are we funding Livable Communities Act investments?

• Where are Housing Choice Voucher recipients choosing to live?

• How can we collaborate with other stakeholders to increase our leverage to increase residential choice and expand opportunity for everyone?

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Summing up• The region’s poverty rate continues to decline

• Areas of Concentrated Poverty have expanded since 2000 and now exist in the suburbs

• Ongoing signs that concentrated poverty is receding—but not in areas where a majority of residents are people of color

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For further information

Visit:www.metrocouncil.org/data

Contact:Matt Schroeder

[email protected]