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Westchester Has More "Income Diversity" Between Its Neighborhoods Than Any Other NY County

This is Part 1 of a three part series comparing demographics in Westchester County to the rest of New York state. Stay tuned for Parts II and III.

There are lots of ways to compare the demographics of different areas. One way is to examine how diverse they are when it comes to the income of their residents.

An area with a lot of “income diversity" will have residents evenly spread across the income spectrum, while an area with little income diversity will have residents clustered at specific income levels. We took a look at income diversity in every county in New York, and discovered that Westchester actually has more income diversity between its neighborhoods than any other county in the state. Westchester and New York County (Manhattan), in fact, have levels of income diversity between neighborhoods that far exceed every other New York county.

Why does this matter? In many ways, income diversity can be a very good thing. For example, a wide range of income levels means increased economic mobility, which reduces income inequality and promotes a more equitable society. A diverse range of incomes can also encourage creative innovation as individuals from different socioeconomic backgrounds more easily share their unique perspectives and experiences.

At the same time, income diversity within a geographic area can present challenges. Concentrated poverty and crime, resentment within the population, and gentrification can all increase in areas with high income diversity levels. Close to home from the WCA’s perspective, increased income diversity can also create challenges for public agencies, because it requires them to consider of a wider range of interests when delivering services.

Either way, income diversity has a big impact on the way people live and work together in their communities.1 Let’s take a closer look at income diversity in Westchester County compared to other New York counties.

Income in Westchester's Census Tracts

There’s no standard definition of a “neighborhood.” The US Census, however, divides counties into geographic “census tracts.” Westchester County has 242 census tracts, with an average of about 1,500 households in each. So you can think of a tract as something of a stand-in for a neighborhood.

The median income is different, of course, in every tract. Each bar in this chart represents a different income bracket. The height of the bar shows how many Westchester tracts are in a particular income bracket.

As you can see, Westchester’s tracts run across a wide range of income brackets.

Comparing Westchester

Now let's look at how Westchester’s tracts compare to the tracts in other large New York counties. First, many other counties have more total tracts than Westchester. We need to adjust our chart to account for that. So here is the same Westchester chart we used above, but with the maximum number of tracts per income bracket set to 90 rather than 20. This will allow us to compare Westchester to other counties that have more tracts.

Here are charts for some other large New York counties, along with Westchester. You can see that the bars in the Westchester and New York charts are relatively flat as compared to the others. This means that these two counties have a fairly even distribution of tracts across the income spectrum. In contrast, when the tracts in a chart cluster more heavily around certain points, as they do in the other counties, that means their distribution is less even.

Here’s another way to view the same data. This chart shows, for each county in New York, the average distance of the tracts’ median income from the average median income in the county (this is what statisticians call the “standard deviation”). A larger number here means a county’s tracts are more “spread out” from each other, in terms of the median income of the tracts within that county. You can see that in Westchester and New York counties, the average tract is much further away from the median income in the county, as compared to other counties.

Geography vs. Income Alone

It is important to note that the income diversity we’ve highlighted here is diversity between census tracts (again, you can think of tracts as being similar to neighborhoods). Interestingly, if you look at household income by income bracket alone, meaning without regard to any geographic considerations, the distributions in these counties actually look much more similar to each other. That's shown in the set of charts here with orange bars. To make it easier for you to compare the two sets of charts, click the "Show Tracts Charts" button to toggle on the charts we saw earlier depicting income diversity between tracts. In the set of charts with orange bars, the height of the bars represents number of households in each income bracket. In the set of charts with blue bars, the height of the bars represents the number of tracts in each income bracket.

Show Tracts Charts:

Off
On

Why do Westchester and New York have income distribution graphs that flatten when we consider household income by geography (blue bars), as compared to when we look at household income alone (orange bars)? In theory, one explanation could be there are more households in high income tracts. But that’s not the case: the households per tract metric in Westchester doesn’t really correlate with median tract income levels. Instead, it seems reasonable to assume that the Westchester graph flattens when we consider geography because Westchester has more diversity of income levels inside each of our tracts. In other words, Westchester, along with New York County, has less geographic concentration of high income households.

The Take Away

As we noted at the outset, income diversity comes with both benefits and challenges. Knowing that Westchester County has higher income diversity between its neighborhoods can help the WCA better understand the dynamics of life in Westchester, so we can better serve Westchester families.

Stay tuned for Part II of this series, where we’ll take a look at poverty and hardship in Westchester, and how it compares to other New York counties.

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Source: U.S. Census Bureau. (2022). American Community Survey 5-year Surveys, Tables 19013 and 19001A through 19001I. Retrieved from https://www.census.gov/programs-surveys/acs/data.html

Notes:

1 For the interested reader, here are some examples of research relating to the impact of income diversity: