Poverty Concentration
It is a goal of the Lake County Board to “enhance livability and economic opportunities”
for all County residents, and reducing poverty levels and dissipating areas of
concentrated poverty support that goal.
The recent economic recession, crash of the housing market, and high levels of
unemployment have resulted in a significant decrease in the economic status of many
households. Although minority households have had a higher rate of poverty in
comparison to non-minority households for several decades, the poverty rate has
increased with the weak economy. In Lake County, 9.3 percent of all households are
below the poverty level. The rate for White and Asian households is below the overall
poverty rate at 5.6 and 4.1 percent, respectively. However, the rate for Hispanic
households is 18.1 percent, and the rate for African-American households is even
higher, at 23 percent.
Exhibit III-23.
Poverty Status by Household
At or above poverty level
Below poverty level
Total
All
90.7%
9.3%
100%
White
94.4%
5.6%
100%
AfricanAmerican
76.9%
23.1%
100%
Asian
95.9%
4.1%
100%
Hispanic
81.6%
18.4%
100%
Source: 2012 ACS 1-Year Estimates.
High-poverty areas tend to have fewer asset- and income-building opportunities for
those residents, and layering an examination of the patterns of poverty with racial
conce ntrations is an important component in assessing the parity of opportunity in Lake
County.
In a study of “The Structure of Advantage and Disadvantage in the Chicago Region,”
completed in 2005, researchers analyzed the correlation between race, income and
access to asset- and income-building opportunities (such as jobs, housing price
appreciation, education, municipal services, etc.).9 The study ranked all Chicago region
communities on a data-based opportunity “index” and divided all communities into five
equal groups (quintiles). They labeled the bottom two groups of communities as “lowopportunity” areas and noted these low-opportunity areas were characterized by:
“Poverty rates are three to four times greater in the two low-opportunity groups.”
Lukehart, John, Tom Luce, and Jason Reece, “The Segregation of Opportunities: The Structure of
Advantage and Disadvantage in the Chicago Region,” May 2005.
9
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APPLIED REAL ESTATE ANALYSIS, INC.
LAKE COUNTY, ILLINOIS