Community Corner
DFW area's median income decreased by nearly 1% in recent years
Analyzing Dallas-Fort Worth's Evolving Income Structures
Dallas, Texas - The U.S. Census Bureau's American Community Survey released a new report on Thursday. It highlighted the economic changes in Dallas-Fort Worth (D-FW) from 2019 to 2022.
In these years, the DFW area's median income decreased by about 0.85%. It dropped to "$82,823" in the last year from an adjusted "$83,537" in 2019. This reduction was similar to the national decrease. However, the national median income decreased by 1.6%, adjusted for inflation in the same years.
The state of Texas also saw a decline in median income. It decreased by 2.35% to "$72,284" in 2022 from the adjusted "$74,022" in 2019. Yet, the number of Dallas-area residents earning over "$100,000" yearly increased. It went from 35% in 2019 to 42% in 2022. This suggests a growing divide in the economic landscape.
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The COVID-19 pandemic influenced the income distribution in the region. Many high earners moved from big cities to outer suburbs and rural areas. In the local context, Dallas County saw a decrease in income. In contrast, suburban counties saw an increase. Cullum Clark, from the Bush Institute-SMU Economic Growth Initiative, analyzed IRS data. He found that Dallas County lost nearly "10,000 tax-filing households" between 2020 and 2021. These households moved mainly to Collin, Denton, and Tarrant counties.
Those moving from Dallas County to Collin County had higher incomes than those moving the other way. Denton County, however, attracted more high-income residents than Collin County. Denton County gained "5,000 tax-filing households" from other North Texas counties between 2020 and 2021. This increased its total taxable income by an estimated "$765 million."
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This change in demographics and economy is part of a larger national trend. The impacts of the pandemic have widened income gaps. Stagnant wages and increased inflation have also affected the economy. Wage growth in the last two years has not kept up with inflation. This puts many people in a challenging financial position.
Credit: Dallas Metro News
