However, income levels do not show the entire picture.  The cost of living in an area, when combined with the level of income, reveals the true nature of a region’s affordability.  Many of the major cities in the Northeast and on the West Coast have much higher average incomes than Dallas.  However, this higher income is oftentimes more than offset by an even higher cost of living—particularly in the cost of housing.

Poverty levels show the other end of the spectrum.  Even with high incomes and a relatively low cost of living, a region with a high poverty level indicates a sharp divide between the “haves” and the “have-nots”.  A region with a high poverty rate, in spite of high average income, could not be considered an economic success.

This aspiration presents data and information for four indicators, which are listed in the grey panel on the right side of this page.  Specifically, the four indicators within this aspiration report the following:

• Median household income adjusted by cost of living: Data on per capita income and cost of living in major cities from the Bureau of Economic Analysis and the Consumer Price Index (CPI) from the Bureau of Labor Statistics
• Income levels: Per capita personal income for the last 5 years for major U.S. cities from the Bureau of Economic Analysis, median household income, as reported by the U.S. Census Bureau, and distribution of income by level from the U.S. Census Bureau
• Poverty levels: Number of people living below the poverty level from the U.S. Census Bureau’s Small Area Income and Poverty Estimates (SAIPE) and median household income from the U.S. Census Bureau
• Bankruptcies: Number of bankruptcies and rate per 1,000 population, as reported by RAND Texas