Vermont’s two-year household income decline second worst in nation

first_imgIncome 2008Two-Year-Average Median Household Income by State: 2006 to 2008 (Income in 2008 dollars. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see ) From 2006 to 2008, Vermont households lost an average of $5,757 in income, the second worst in the nation and the largest percentage decrease at 10.3 percent. New Jersey had the highest income drop at $7,214 and the second highest percentage loss at 10.1 percent. Georgia was third worst ($3,404, -6.4 percent). The biggest factor appears to be in investment income as the stock market fell precipitously from its high in October 2007 through the end of 2008 and beyond. On October 12, 2007 when the Dow Jones average closed at a record 14,903 to October 10, 2008, when it closed 8,451, is the worst one-year performance since the Great Depression. Vermont counts on “unearned” income more than most states when calculating household income. This would seem to indicate that when 2009 numbers come out in about a year, Vermont should see a marked improvement as the Dow now stands at 9,789 (9.29.2009).Having said that, looking at just 2007 to 2008, even as the recession worsened and stocks plunged, income in Vermont actually rose marginally by 0.7 percent to $52,104, ranking Vermont just above the national average. Real median household income in the United States fell between the 2007 American Community Survey and the 2008 ACS, as household income decreased 1.2 percent to $52,029.Median household income estimatesin the 2008 ACS ranged from a median of $70,545 for Maryland to $37,790 for Mississippi. Real median household income rose between the 2007 ACS and the 2008 ACS in 5 states compared to 33 states that showed an increase between the 2006 ACS and the 2007 ACS. For the states that experienced increases, two states were in the South, Louisiana and Texas; two were in the Northeast, New York and New Jersey; and one was in the Midwest, Kansas.Real median household income decreased between the 2007 ACS and 2008 ACS in five states Arizona, Indiana, Michigan, California, and Florida compared to only one state, Michigan, which experienced a decline between the 2006 ACS and the 2007 ACS. In 40 states and the District of Columbia, real median household income in the 2008 ACS was not statistically different from that in the 2007 ACS. Median household incomes in 18 states and the District of Columbia were above the U.S. median, while 29 state medians were below it. Three states had median household incomes that were not statistically different from the U.S. median.By comparison, monthly housing costs from 2007 to 2008 followed a similar trend with median household income by rising in Vermont (1.9 percent, $1,471) while falling nationally (-0.3 percent, $1,514). Again, the 2009 numbers could look significantly different by this time next year as home prices have fallen dramatically across the country as foreclosures have risen over the last few years. Even Vermont, which has had the lowest foreclosure rate in the nation, has seen that number increase. Home values nationally increased this past summer as first-time homebuyers took advantage of the federal $8,000 tax credit. But recently home values have fallen as the stimulus measure seems to have played out. 2005-2006 Median money income2007-2008 Median money incomeDollar ChangePercentage changeUnited States51,28351,233-50-0.1Alabama40,75144,1553,4058.4Alaska60,94564,7013,7566.2Arizona49,86347,972-1,891-3.8Arkansas40,00140,9749732.4California58,07857,445-633-1.1Colorado57,55962,2174,6588.1Connecticut64,66265,6449831.5Delaware56,25253,695-2,558-4.5District of Columbia50,69554,1623,4676.8Florida48,09546,206-1,890-3.9Georgia51,67348,369-3,304-6.4Hawaii65,14664,002-1,145-1.8Idaho49,03649,2472110.4Illinois52,67753,8891,2122.3Indiana47,64747,8982520.5Iowa51,33950,465-875-1.7Kansas47,49849,1191,6213.4Kentucky41,32041,058-262-0.6Louisiana40,01641,2321,2163.0Maine48,59248,481-111-0.2Maryland67,36465,932-1,433-2.1Massachusetts60,43460,515810.1Michigan51,30550,528-777-1.5Minnesota59,91057,607-2,303-3.8Mississippi36,67437,5799052.5Missouri47,50746,906-602-1.3Montana42,52444,1161,5923.7Nebraska52,13450,896-1,238-2.4Nevada54,50055,4409401.7New Hampshire64,51268,1753,6635.7New Jersey71,28464,070-7,214-10.1New Mexico42,85044,0811,2312.9New York51,76350,643-1,120-2.2North Carolina44,44144,058-384-0.9North Dakota45,18449,3254,1429.2Ohio48,88448,960770.2Oklahoma41,49745,4943,9989.6Oregon49,49551,9472,4525.0Pennsylvania51,41650,850-566-1.1Rhode Island55,98054,767-1,213-2.2South Carolina43,33844,0346961.6South Dakota48,05149,9011,8503.9Tennessee43,45841,240-2,218-5.1Texas45,96647,1571,1912.6Utah59,39559,062-333-0.6Vermont55,71649,959-5,757-10.3Virginia59,12661,7102,5844.4Washington57,14858,4721,3242.3West Virginia40,61140,8512400.6Wisconsin52,22352,22410.0Wyoming49,77751,9772,2004.4 * Statistically different from zero at the 90-percent confidence level.1 The 2-year-average median is the sum of two inflation-adjusted single-year medians divided by 2.2A 90-percent confidence interval is a measure of an estimate’s variability. The larger the confidence interval in relation to the size of the estimate, the less reliable the estimate. For more information see “Standard errors and their use” at Source: U.S. Census Bureau, Current Population Survey, 2006 to 2009 Annual Social and Economic Supplements.last_img