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Poverty and Demographics in L.A.

CountyNew Findings from the American

Community Survey

June 1st, 2009

Poverty in L.A. County

“Overcoming poverty is not a gesture of charity. It is an act of justice"

-Nelson Mandela

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Today we will look at……

Overview of poverty in L.A. County

How pervasive is poverty in L.A. County? Who is poor? (traits of people in poverty)

Is Poverty and its associated affects (as seen in housing and education) in L.A. County unique compared to California and other places?

Conclusion: What to expect for the next ACS and the 2010 Census.

Poverty Rates

Source: U.S. Census Bureau; American Community Survey, 2006 and 2007

Poverty Rates

2006 2007

L.A. County

15.4% 14.7%

California 13.1% 12.4%

U.S. 12.3% 12.5%

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*Cities and Places with populations of at least 20,000

Top 5 highest and 5 Lowest Poverty Rates in L.A. County Cities and Places* 2005-2007

The 5 Lowest The 5 Highest

Agoura Hills 2%

Diamond Bar 3%

Glendora 3%

La Canada Flintridge 3%

Rancho Palos Verdes 3%

Compton 24%

East Los Angeles 25%

Lennox 25%

Florence-Graham 28%

Willowbrook 30%

Source: U.S. Census Bureau; American Community Survey, 2005-2007 Estimates * Cities and Places with populations of at least 20,000

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Who are the Poor in L.A. County?

Poverty Across Ethnicities/Races for L.A. County in 2007

18.9%10.4% 8.0%20.0%

80.0% 81.1% 89.6%92.0%

African-American Latino/Hispanic Asian White/not Hispanic

Above PovertyThreshold

Below PovertyThreshold

Source: U.S. Census Bureau; American Community Survey, 2007

Child Poverty

Source: U.S. Census Bureau; American Community Survey, 2007

Child Poverty Rates

2006 2007

L.A. County

21.2% 21.3%

California 18.1% 17.3%

U.S. 18.3% 18.0%

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Source: U.S. Census Bureau; Special tabulation, American Community Survey, 2006

Early Childhood Poverty Rates

Source: U.S. Census Bureau; American Community Survey, 2007

Poverty Rates for Children Under 5 years of Age in L.A. County, 2007

0% 10% 20% 30% 40%

White, NotLatino/Hispanic

Asian

Hispanic/Latino

African American

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Source: U.S. Census Bureau; American Community Survey, 2007

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

African-American

Asian White/Non-Hispanic

Latino

People in Poverty by Race/Ethnicity for L.A. County 2007

65 years and over

18 to 64 years

Under 18 years

People in Poverty are not equally Poor

Poverty is defined as under 100% of the Federal Poverty Threshold.

Under 200% of the Federal Poverty threshold is a common threshold for being considered poor.

Extreme Poverty is often known to be under 50% of the Federal Poverty Threshold.

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A Profile of Poverty During the Past Five Years in L.A. County

Source: U.S. Census Bureau; American Community Survey, 2002-2007

Poverty Across L.A. County

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Year2002

Year2003

Year2004

Year2005

Year2006

Year2007

% o

f L.A

. County

Res

iden

ts

Working Poor(under 200%FPL)Poverty (under100% FPL)

ExtremePoverty (under50%FPL)

Is Poverty and its associated effects in L.A. County unique compared to other major metro areas in California and compared to the U.S.?

Yes…..and No.

Yes: there are more people living in extreme poverty

(both in absolute terms and in proportion). More people have severe rent burden as a percentage

of income. More people in general as a proportion are in

overcrowded and severely overcrowded housing. LA County has more people without a college degree

(a reliable predictor of future earnings) compared to other major metros in the state.

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People in Extreme Poverty

Extreme Poverty (under 50% of the Federal Poverty Threshold) means (in 2007) one earns:

1 person earning less than $5,200 a year. A family of 3 earning less than $8,800 a year. A family of 4 earning less than $10,600.

Source: U.S. HHS Poverty Guidelines, 2007

Extreme Poverty

Over 583,000 people in L.A. County live in extreme poverty-enough to fill a major U.S. city.

Population of Extreme Poor in L.A. Compared to Total Populations of Selected Major U.S.

Cities

0

100,000

200,000

300,000400,000

500,000

600,000

700,000

Miami Las Vegas Seattle LA CountyExtreme

Poor Only

WashingtonD.C.

Po

pu

lati

on

Source: U.S. Census Bureau; American Community Survey, 2007

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Percent of Population in Extreme Poverty in California in 2007

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

San Francisco San Jose California San Diego Sacramento Los AngelesCounty

Percent of People in Extreme Poverty in L.A. and Selected Major Metro Areas in 2007

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

San Francisco

San Jose

California

San Diego

Sacramento

LA County

Long Beach

L.A City

Lancaster

Compton

East L.A.

Source: U.S. Census Bureau; American Community Survey, 2007

Source: U.S. Census Bureau; Special tabulation, American Community Survey, 2006

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High Housing Costs

HUD classifies housing that requires more than 30% of the occupants’ income as unaffordable housing. Many people however experience severe rent burden- that is –paying more than 50% of income on rent.LA County has a higher proportion of people experiencing severe rent burden than other major urban areas in California, and compared to California as a whole.

Severe Rent Burden Percent of Renters paying 50% or more of income on rent in 2007

0% 5% 10% 15% 20% 25% 30% 35% 40%

San Francisco

San Jose

California

San Diego

Sacramento

Hawthorne city

East Los Angeles CDP

Inglewood

L.A. County

Los Angeles city

Long Beach

Glendale

Compton

Source: U.S. Census Bureau; American Community Survey, 2007

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Overcrowded Housing

The government* classifies housing as being overcrowded if there are over 1 occupants per room, with severe overcrowding as being more than 1.5 occupants per room.

*Source: U.S. Census Bureau

Overcrowded HousingOvercrowded Housing in Major Metro Areas in 2007

0

2

4

6

8

10

12

L.A

. Cou

nty

LA C

ity

U.S

.

Cal

iforn

ia

NY

City

Long

Bea

ch

San

Fra

ncis

co

San

Jos

e

San

Die

go

Sac

ram

ento

% o

f re

nte

r o

ccu

pie

d u

nit

s

1.01 to 1.50occupants perroom1.51 or moreoccupants per

Source: U.S. Census Bureau; American Community Survey, 2007

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Education Attainment for People 25 years and older in 2007

Percent high school graduate or higher

Percent bachelor's degree or higher

L.A. County 75.2% 28.3%California 80.2% 29.5%San Jose 80.5% 34.7%Sacramento 80.7% 28.9%U.S. 84.0% 27.0%San Francisco 84.9% 49.9%San Diego 86.3% 40.4%

Source: U.S. Census Bureau; American Community Survey, 2007

*Cities and Places with populations of at least 20,000

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Percent of people 25 yrs or older with at least a B.A. degree for L.A. County Cities/Places+ 2005-2007

The 5 Lowest The 5 Highest

Cudahy 3%

Lennox 3%

Bell 3%

Florence-Graham* 4%

Bell Gardens 4%

* also among the 5 highest poverty ratesin L.A. County

Beverly Hills 60%

Rancho Palos Verdes** 60%

Santa Monica 61%

La Canada Flintridge** 67%

Manhattan Beach 70%

** also among the lowest 5 poverty rates in L.A. County

Source: U.S. Census Bureau; American Community Survey, 2005-2007 Estimates+Cities and Places with populations of at least 20,000

Is Poverty and its associated effects in L.A. County unique compared to other major metro areas in California and compared to the U.S.?

Not necessarily. • L.A. County has about the same income

inequality dynamics as the rest of the country and other major metro areas.

• Disproportionately high poverty rates for minorities in L.A. County are pretty much similar in other parts of the state.

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Income Distribution

Share of Aggregate Household Income in 2007

0.0

10.0

20.0

30.0

40.0

50.0

60.0

LowestQuintile

SecondQuintile

ThirdQuintile

FourthQuintile

HighestQuintile

Top 5Percent

Per

cen

t o

f A

gg

reg

ate

Inco

me

Sacramento

San Diego

San Francisco

San Jose

L.A. County

Source: U.S. Census Bureau; American Community Survey, 2007

The Gini Index, though slightly higher for L.A. County is not

too much greater than other parts of the state

Gini Index; 0=Perfect income equality; 1.0= Perfect income InequalitySacramento 0.433San Jose 0.436San Diego 0.461U.S. 0.467California 0.469Los Angeles 0.493San Francisco 0.519

Source: U.S. Census Bureau; American Community Survey, 2007

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Disproportionately high poverty rates for minorities in L.A. County are similar in other

parts of the state and the U.S.

% in Poverty Across Race/Ethnicities 2007

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

L.A. C

ount

y

Sacra

men

to

San D

iego

San F

ranc

isco

San Jos

e

Califo

rnia

U.S.

African-American

White/notHispanic

Asian

Latino/Hispanic

Source: U.S. Census Bureau; American Community Survey, 2007

Conclusions: What to expect for the release

of upcoming poverty and housing data….All obvious predictions in light of

current recession: An increase in the rate of poverty, but

perhaps mostly we will see a growth of people in extreme poverty (under ½ the poverty threshold).

Increase in people/households paying 50% of gross income on rent.

An increase in the rate of overcrowding as more people double up with family/friends to reduce housing costs.

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United Way of Greater Los Angeles

Thank you

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