A Decade of Prosperity in Southeast Michigan: Comparing 1990 and 2000 Census Data

June 2002

© SEMCOG 2002

Abstract SEMCOG used 1990 and 2000 Census data to examine the distribution and changes in household income, housing value, and poverty by community across Southeast Michigan. Comparisons between 1990 and 2000 are based on adjusted 1989 or 1990 dollars.

Preparation of this document was financed, in part, through grants from the U.S. Department of Transportation, Federal Transit Administration and Federal Highway Administration, through the Michigan Department of Transportation and local membership dues.

Permission is granted to cite portions of this publication with proper attribution. The first source attribution must be SEMCOG, the Southeast Michigan Council of Governments. Subsequently, SEMCOG is sufficient. Reprinting in any form must include the publication's full title page.

SEMCOG Southeast Michigan Council of Governments Information Services 535 Griswold Street, Suite 300 Detroit, MI 48226-3602 313-961-4266 • Fax 313-961-4869 www.semcog.org • [email protected] For immediate release Contact: Jim Rogers or Sue Stetler June 18, 2002 (313) 961-4266

Southeast Michigan prospers in the 1990s

Southeast Michigan saw increases in household income and housing values and decreases in poverty levels, according to an analysis of 1990 and 2000 Census data recently completed by SEMCOG, the

Southeast Michigan Council of Governments.

Household incomes rose in most Southeast Michigan communities. Communities in the suburban outlying areas saw the highest increases. Fifty-four communities have a median household income of

$70,000 and over. Some examples from across the region include Canton and all of the Grosse Pointes

(Wayne County), Huntington Woods and Oakland Township (Oakland County), Macomb and Ray townships (Macomb County), Hamburg and Tyrone townships (Livingston County), and York and Scio townships (Washtenaw County).

The City of Detroit and some of the older suburbs also saw increases in household income. Detroit's median household income rose 17 percent (or, $4337) to $29,526. (All comparisons between 1900 and

2000 Census based on dollar values adjusted for inflation.) The 15 poorest communities in the region all saw increases in median household income, including Highland Park, Royal Oak Township, Hamtramck,

Ecorse, Ypsilanti, and River Rouge.

The largest decreases in income occurred in some of the region's richest communities, including

Bloomfield Hills, Barton Hills Village, and Orchard Lake Village. Of the richest communities, Grosse

Pointe Shores, which had a median income of $158,713 in 1989, saw that figure drop by $43,850 to

$114,863 in 1999.

Across the region, housing values rose in every community. Communities with higher housing values gained more than average. The median housing value in Bloomfield Hills rose 27 percent, from $672,000 to $854,000. Communities with lower housing values also gained significantly, SE Michigan prospers, page 2 of 2 especially in terms of percentage increases. For example, the median housing value in Detroit increased 87 percent from $34,000 to $63,600. Despite the large increase in housing value, the region still remains more affordable than other large, urban regions. Based on mortgage-to-income ratio, the region has the third most affordable housing (behind Minneapolis-St. Paul and St. Louis) among the nation's 20 largest metro areas.

Poverty rates decreased in 10 of the region's communities with the highest poverty rates. Detroit's poverty rate decreased 6.3 percentage points, from 32.4 percent to 26.1 percent. However, more than one-fourth of Detroiters still live in poverty. The poverty rate in Dearborn increased 5.4 percentage points, to 16.1 percent in the 1990s, probably due to the large influx of immigrants to the city.

"We still have a lot of challenges here in Southeast Michigan," said Jim Rogers, Manager of

SEMCOG's Data Center, who oversaw compilation of this report. "But after several decades of economic bad news in the region, it is encouraging to see many of these numbers showing positive signs. That is a significant step forward for our region."

The report, titled A Decade of Prosperity in Southeast Michigan: Comparing 1990 and 2000

Census Data, is available on SEMCOG’s Web site at www.semcog.org/news/releases/

CensusAnalysis.html or by calling SEMCOG Information Services at 313-961-4266.

SEMCOG is a regional planning partnership of governmental units serving 4.9 million people in the seven-county region of Southeast Michigan striving to enhance the region’s quality of life.

— ### — I. Income

· Household incomes rose in most communities. · Communities in more suburban, outlying areas of the region saw highest increases. · City of Detroit and some older suburbs saw income increases as well. Detroit’s median household income jumped by 17 percent (or $4,337) to $29,526. · Most poor communities (in fact, all 15 poorest communities) saw increases in median household income. · Largest decreases of income took place in some of the richest communities.

Table 1 Highest and Lowest Income Communities, 1989 and 1999

Communities 1989 Income 1999 Income 1989-1999 Inflation Adjusted* Income Rank Change Bloomfield Hills city 201,601 170,790 1 -30,811 Barton Hills village 189,343 149,056 2 -40,287 Franklin village 122,873 124,014 3 1,141 Bingham Farms village 144,488 123,771 4 -20,717 Orchard Lake Village city 142,778 121,126 5 -21,652 Grosse Pointe Shores 158,713 114,863 6 -43,850 … … Detroit city 25,189 29,526 227 4,337 River Rouge city 23,520 29,214 228 5,694 Ypsilanti city 28,518 28,610 229 92 Ecorse city 25,477 27,142 230 1,665 Hamtramck city 22,513 26,616 231 4,103 Royal Oak township 22,219 23,710 232 1,491 Highland Park city 13,178 17,737 233 4,559

* Adjustment of 1989 dollars used CPI adjustment factor of 1.34.

II. Housing Value

· Across the region, housing values rose in every individual community! · Communities with higher housing values gained more than average. · Communities with lower housing values also gained significantly, especially in terms of percentages. For example, median housing value in Detroit increased by 87 percent to $63,600. · Despite the large increase in housing value, the region still remained more affordable than other cities. Based on mortgage-to-income ratio, the region has the third most affordable housing (behind Minneapolis-St. Paul and St. Louis) among the nation’s 20 largest metro areas (Source: Detroit News).

Table 2 Highest and Lowest Housing Value Communities, 1990 and 2000

Communities 1990 Housing Value 2000 Housing Value 1990-2000 Inflation Adjusted Value Rank Change Bloomfield Hills city 672,001 854,000 1 181,999 Lake Angelus city 495,398 814,800 2 319,402 Barton Hills village 530,880 710,400 3 179,520 Grosse Pointe Shores 456,019 597,900 4 141,881 … … Detroit city 34,003 63,600 230 29,597 Highland Park city 25,939 49,800 231 23,861 River Rouge city 29,568 45,500 232 15,932 Ecorse city 34,272 44,300 233 10,028

III. Poverty Rate

· Poverty rates decreased in most communities, including most urban centers. · Detroit’s poverty rate dropped from 32.4 percent to 26.1 percent, although over a quarter of Detroiters still live in poverty. · The pattern of poverty rate change is mixed for the rest of the region. Some suburban communities, such as Dearborn, saw increases in poverty rate.

Table 3 Highest Poverty Communities, 1989 and 1999

Communities 1989 Poverty Rate 1999 Poverty Rate 1989-1999 Rate Rank Change Highland Park city 42.5% 39.4% 1 -3.1% Hamtramck city 28.3% 26.8% 2 -1.5% Detroit city 32.4% 26.1% 3 -6.3% Ypsilanti city 29.6% 25.9% 4 -3.7% Royal Oak township 25.0% 23.1% 5 -2.0% Ecorse city 26.7% 22.6% 6 -4.1% Pontiac city 26.7% 22.2% 7 -4.5% River Rouge city 28.4% 21.9% 8 -6.5% Inkster city 23.1% 19.4% 9 -3.7% Port Huron city 22.0% 17.0% 10 -5.1% Ann Arbor city 16.1% 16.7% 11 0.5% Dearborn city 10.8% 16.1% 12 5.4%

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