Dive Brief:
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A recent study from the Population Reference Bureau found that 41% of U.S. counties reported high levels of poverty and income inequality in 2014 compared to 29% of counties reporting the same in 1989.
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The share of counties covering large metropolitan areas reporting high levels of income inequality and poverty has grown from 11% in 1989 to 21% in 2014, while in counties in small and mid-sized metros the figure has risen from 22% to 46% during the period. In rural and non-metropolitan counties, the figure has increased from 35% to 44%.
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Growing income inequality and poverty have particularly affected the Sunbelt states, CityLab explained in its analysis of the report, while areas reporting low income inequality and low poverty levels are primarily in the Midwest and Mountain regions.
Dive Insight:
The rise in poverty and income inequality levels ties to the growing housing affordability gap as people struggle to afford to buy or rent property as home and rental prices outpace wage growth in many areas of the country.
A recent report by RealtyTrac found that housing affordability nationwide tumbled in the fourth quarter to its lowest point in eight years, while a study this past fall published in the Journal of Regional Science found that rents in the U.S. climbed 28.7% nationwide from 1970 to 2010 while incomes grew only 13.8% during that time.
Washington, DC, is one area of the country where a population influx and resultant residential construction boom in the market's upper tiers is having adverse effects on its lower end. The district’s homelessness rate is the highest in the U.S. and is double the national average, according to a new report from the U.S. Conference of Mayors, as rising rents there make finding housing in the private market increasingly difficult for lower-income residents.
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