Interactive: Visualizing the Poverty Rate of Each U.S. State
Connect with us

Money

Visualizing the Poverty Rate of Each U.S. State

Published

on

Visualizing the Poverty Rate of Each U.S. State

How many people live below the poverty line in states across the country?

Today’s interactive map comes to us from Overflow Solutions, and it visualizes the percentage of people living in poverty across the United States over the time period of 2008-2017.

U.S. Poverty Rates Today

To start, we’ll look at the situation using the most recent data, which was pulled from the American Community Survey (2017) done by the U.S. Census Bureau.

For additional context, it is worth noting that the national poverty level is estimated to sit at 13.4%.

Here are the five states with the highest levels of poverty today:

RankStatePoverty Rate (2017)
#1Mississippi19.8%
#2Louisiana19.7%
#3New Mexico19.7%
#4West Virginia19.1%
#5Kentucky17.2%

In three southern states, Mississippi, Louisiana, and New Mexico, nearly 20% of the population lives below the poverty line. Two Appalachian states round out the top five: West Virginia (19.1%) and Kentucky (17.2%).

On the flipside, here are the five states with the lowest levels of poverty:

RankStatePoverty Rate (2017)
#47Connecticut9.6%
#48 (t)Minnesota9.5%
#48 (t)Hawaii9.5%
#50Maryland9.3%
#51New Hampshire7.7%

New Hampshire (7.7%) has the lowest poverty rate by a long shot – about 1.6% lower than its closest competitor, which is the state of Maryland (9.3%).

Poverty Rates Over Time

While the data from 2017 provides an interesting snapshot, perhaps it is more insightful to look at the trend over time. In other words, are poverty rates increasing or decreasing?

Below is a comparison of state averages in 2008 (pre-crisis), 2012 (recent peak), and 2017:

 200820122017
Avg. state poverty rate10.1%15.2%13.1%

Since the recent peak in 2012, poverty has decreased by an average of 2.1% per state – in fact, over the 2012-2017 time period, there were only three states that did not see a reduction in poverty levels: Alaska, Delaware, and West Virginia.

Using the longer time window, however, you’ll see that poverty rates have actually risen by 3.0% on average since 2008. Today, not a single state has a lower poverty rate than it did in 2008.

State Poverty Rates (All)

Finally, here’s a full state table that is sortable and searchable, showing poverty levels in 2008, 2012, and 2017, for your convenience:

 200820122017
Alabama13.1%19.0%16.9%
Alaska6.1%10.1%11.1%
Arizona12.6%18.7%14.9%
Arkansas14.6%19.8%16.4%
California11.2%17.0%13.3%
Colorado9.0%13.7%10.3%
Connecticut7.0%10.7%9.6%
Delaware7.6%12.0%13.6%
District of Columbia15.4%18.2%16.6%
Florida10.7%17.1%14.0%
Georgia12.4%19.2%14.9%
Hawaii5.8%11.6%9.5%
Idaho9.9%15.9%12.8%
Illinois10.0%14.7%12.6%
Indiana10.6%15.6%13.5%
Iowa7.9%12.7%10.7%
Kansas8.4%14.0%11.9%
Kentucky14.4%19.4%17.2%
Louisiana14.8%19.9%19.7%
Maine8.7%14.7%11.1%
Maryland5.7%10.3%9.3%
Massachusetts7.0%11.9%10.5%
Michigan11.5%17.4%14.2%
Minnesota6.5%11.4%9.5%
Mississippi19.0%24.2%19.8%
Missouri10.6%16.2%13.4%
Montana11.5%15.5%12.5%
Nebraska7.6%13.0%10.8%
Nevada9.0%16.4%13.0%
New Hampshire4.9%10.0%7.7%
New Jersey6.7%10.8%10.0%
New Mexico14.7%20.8%19.7%
New York11.1%15.9%14.1%
North Carolina12.0%18.0%14.7%
North Dakota8.6%11.2%10.3%
Ohio10.5%16.3%14.0%
Oklahoma13.2%17.2%15.8%
Oregon10.5%17.2%13.2%
Pennsylvania9.2%13.7%12.5%
Rhode Island8.3%13.7%11.6%
South Carolina13.0%18.3%15.4%
South Dakota9.7%13.4%13.0%
Tennessee12.9%17.9%15.0%
Texas14.1%17.9%14.7%
Utah6.9%12.8%9.7%
Vermont6.5%11.8%11.3%
Virginia7.9%11.7%10.6%
Washington8.4%13.5%11.0%
West Virginia13.1%17.8%19.1%
Wisconsin7.3%13.2%11.3%
Wyoming6.1%12.6%11.3%
Click for Comments

Markets

Charted: U.S. Consumer Debt Approaches $16 Trillion

Robust growth in mortgages has pushed U.S. consumer debt to nearly $16 trillion. Click to gain further insight into the situation.

Published

on

Charted: U.S. Consumer Debt Approaches $16 Trillion

According to the Federal Reserve (Fed), U.S. consumer debt is approaching a record-breaking $16 trillion. Critically, the rate of increase in consumer debt for the fourth quarter of 2021 was also the highest seen since 2007.

This graphic provides context into the consumer debt situation using data from the end of 2021.

Housing Vs. Non-Housing Debt

The following table includes the data used in the above graphic. Housing debt covers mortgages, while non-housing debt covers auto loans, student loans, and credit card balances.

DateHousing Debt
(USD trillions)
Non-Housing Debt
(USD trillions)
Total Consumer Debt
(USD trillions)
Q1 20035.182.057.23
Q2 20035.342.047.38
Q3 20035.452.107.55
Q4 20035.962.108.06
Q1 20046.172.138.30
Q2 20046.342.128.46
Q3 20046.642.208.84
Q4 20046.832.229.05
Q1 20057.012.199.20
Q2 20057.232.269.49
Q3 20057.452.359.80
Q4 20057.672.3410.01
Q1 20068.022.3610.38
Q2 20068.352.4010.75
Q3 20068.652.4611.11
Q4 20068.832.4811.31
Q1 20079.032.4611.49
Q2 20079.332.5311.86
Q3 20079.562.5812.14
Q4 20079.752.6312.38
Q1 20089.892.6512.54
Q2 20089.952.6512.60
Q3 20089.982.6912.67
Q4 20089.972.7112.68
Q1 20099.852.6812.53
Q2 20099.772.6312.40
Q3 20099.652.6212.27
Q4 20099.552.6212.17
Q1 20109.532.5812.11
Q2 20109.382.5511.93
Q3 20109.282.5611.84
Q4 20109.122.5911.71
Q1 20119.182.5811.76
Q2 20119.142.5811.72
Q3 20119.042.6211.66
Q4 20118.902.6311.53
Q1 20128.802.6411.44
Q2 20128.742.6411.38
Q3 20128.602.7111.31
Q4 20128.592.7511.34
Q1 20138.482.7511.23
Q2 20138.382.7711.15
Q3 20138.442.8511.29
Q4 20138.582.9411.52
Q1 20148.702.9611.66
Q2 20148.623.0211.64
Q3 20148.643.0711.71
Q4 20148.683.1611.84
Q1 20158.683.1711.85
Q2 20158.623.2411.86
Q3 20158.753.3112.06
Q4 20158.743.3712.11
Q1 20168.863.3912.25
Q2 20168.843.4512.29
Q3 20168.823.5412.36
Q4 20168.953.6312.58
Q1 20179.093.6412.73
Q2 20179.143.6912.83
Q3 20179.193.7712.96
Q4 20179.323.8213.14
Q1 20189.383.8513.23
Q2 20189.433.8713.30
Q3 20189.563.9513.51
Q4 20189.534.0113.54
Q1 20199.654.0213.67
Q2 20199.814.0613.87
Q3 20199.844.1313.97
Q4 20199.954.2014.15
Q1 202010.104.2114.31
Q2 202010.154.1214.27
Q3 202010.224.1414.36
Q4 202010.394.1714.56
Q1 202110.504.1414.64
Q2 202110.764.2014.96
Q3 202110.994.2415.23
Q4 202111.254.3415.59

Source: Federal Reserve

Trends in Housing Debt

Home prices have experienced upward pressure since the beginning of the COVID-19 pandemic. This is evidenced by the Case-Shiller U.S. National Home Price Index, which has increased by 34% since the start of the pandemic.

Driving this growth are various pandemic-related impacts. For example, the cost of materials such as lumber have seen enormous spikes. We’ve covered this story in a previous graphic, which showed how many homes could be built with $50,000 worth of lumber. In most cases, these higher costs are passed on to the consumer.

Another key factor here is mortgage rates, which fell to all-time lows in 2020. When rates are low, consumers are able to borrow in larger quantities. This increases the demand for homes, which in turn inflates prices.

Ultimately, higher home prices translate to more mortgage debt being incurred by families.

No Need to Worry, Though

Economists believe that today’s housing debt isn’t a cause for concern. This is because the quality of borrowers is much stronger than it was between 2003 and 2007, in the years leading up to the financial crisis and subsequent housing crash.

In the chart below, subprime borrowers (those with a credit score of 620 and below) are represented by the red-shaded bars:

Mortgage originations by Credit Score

We can see that subprime borrowers represent very little (2%) of today’s total originations compared to the period between 2003 to 2007 (12%). This suggests that American homeowners are, on average, less likely to default on their mortgage.

Economists have also noted a decline in the household debt service ratio, which measures the percentage of disposable income that goes towards a mortgage. This is shown in the table below, along with the average 30-year fixed mortgage rate.

YearMortgage Payments as a % of Disposable IncomeAverage 30-Year Fixed Mortgage Rate
200012.0%8.2%
200412.2%5.4%
200812.8%5.8%
20129.8%3.9%
20169.9%3.7%
20209.4%3.5%
20219.3%3.2%

Source: Federal Reserve

While it’s true that Americans are less burdened by their mortgages, we must acknowledge the decrease in mortgage rates that took place over the same period.

With the Fed now increasing rates to calm inflation, Americans could see their mortgages begin to eat up a larger chunk of their paycheck. In fact, mortgage rates have already risen for seven consecutive weeks.

Trends in Non-Housing Consumer Debt

The key stories in non-housing consumer debt are student loans and auto loans.

The former category of debt has grown substantially over the past two decades, with growth tapering off during the pandemic. This can be attributed to COVID relief measures which have temporarily lowered the interest rate on direct federal student loans to 0%.

Additionally, these loans were placed into forbearance, meaning 37 million borrowers have not been required to make payments. As of April 2022, the value of these waived payments has reached $195 billion.

Over the course of the pandemic, very few direct federal borrowers have made voluntary payments to reduce their loan principal. When payments eventually resume, and the 0% interest rate is reverted, economists believe that delinquencies could rise significantly.

Auto loans, on the other hand, are following a similar trajectory as mortgages. Both new and used car prices have risen due to the global chip shortage, which is hampering production across the entire industry.

To put this in numbers, the average price of a new car has climbed from $35,600 in 2019, to over $47,000 today. Over a similar timeframe, the average price of a used car has grown from $19,800, to over $28,000.

Continue Reading

Money

Visualizing the Distribution of Household Wealth, By Country

A majority of the world’s wealth is concentrated in the U.S. and China. Here’s a look at the distribution of household wealth worldwide.

Published

on

Wealth Distribution Across the Globe

Visualizing the Distribution of Household Wealth, By Country

A majority of the world’s wealth is concentrated in just a few countries. In fact, almost a third of household wealth is held by Americans, while China’s population accounts for nearly a fifth.

Using data from Credit Suisse, this graphic by Eleonora Nazander shows the distribution of household wealth worldwide, highlighting the wealth gap that exists across regions.

Top 10 Wealthiest Countries

To help simplify things, this graphic shows how much household wealth each country would have if the world only had $100.

As the graphic illustrates, the top 10 wealthiest countries would hold an estimated $77, or 77% of global household wealth. Here’s a breakdown of what their cut of $100 would be:

CountryTotal Wealth ($B)Share of $100
🇺🇸 United States$105,990$29.40
🇨🇳 China$63,827$17.71
🇯🇵 Japan$24,992$6.93
🇩🇪 Germany$14,660$4.07
🇬🇧 United Kingdom$14,341$3.98
🇫🇷 France$13,729$3.81
🇮🇳 India$12,614$3.50
🇮🇹 Italy$11,358$3.15
🇨🇦 Canada$8,573$2.38
🇪🇸 Spain$7,772$2.16
Total$278 Trillion$77.09

The U.S. comes in first place, holding $29.40, or almost a third of total wealth, while China comes in second, accounting for $17.71.

This makes sense considering the high concentration of ultra-wealthy individuals in both countries—China and the U.S. are home to more than half of the world’s billionaires, and eight of the 10 richest people on the planet are Americans, including the world’s richest, Elon Musk.

Japan ranks third on the list, accounting for $6.93. Like the U.S. and China, Japan also has a high portion of ultra-high net worth citizens, or individuals with a net worth of $30 million or more.

Interestingly, India ranks seventh on the list, despite having the third-highest number of billionaires worldwide and a massive population of 1.4 billion. One contributing factor to this could be the country’s relatively high levels of poverty.

Wealth Inequality

It’s important to note that, while the U.S. and China hold a majority of the world’s wealth, both countries still struggle with wealth inequality.

Currently, the top 1% of U.S. households hold 31.7% of the country’s household wealth. And while China has made progress on poverty in the last decade through rapid economic growth, the wealth gap between the country’s rich and poor has widened in recent years.

Governments in both countries have announced plans to tackle wealth inequality. For instance, the Biden administration is working to pass legislation that would increase taxes on businesses and wealthy Americans. Meanwhile, the Chinese government announced its five-year plan to crack down on private enterprise, in an attempt to break up monopolies and ultimately achieve “common prosperity.”

Continue Reading

Subscribe

Popular