2017 Spencer Comprehensive Land Use Plan

Spencer, Iowa  2017  Comprehensive Plan

C HAPTER T RENDS An analysis of past and present economic trends is necessary to determine patterns, trends, and amount of potential economic growth expected in the future. Economic development has become synonymous with community development, as many consider economic development one of the most critical aspects of community development. An economic analysis provides important indicators as to the relative health of the city and potential growth in each of the land use categories. WAGES AND INCOME DISTRIBUTION Income is one of the measures of the health of an area’s economy and potential economic growth when expressed in real terms. By real terms, it is meant the purchasing power of income or the quantity of goods and services that can be bought. By comparing the amount of money it takes to buy a certain quantity of goods in current dollars, with the amount needed to buy the same goods in a previous base year can determine the real income growth of the economy. In other words, the determination is made as to how much of the income increase is due to inflation and how much is actual growth of the economy. Data showing median family income in 2015 for the city, county and the state is shown below. 10 . E CONOMIC D EVELOPMENT The median family income of Spencer is 5.5% lower than Clay County and 10.2% lower than the State of Iowa. When comparing the lowest and highest income ranges, closer examination shows 4.9% of families in Spencer make less than $15,000; compared with 4.0% for Clay County and 5.7% for the State of Iowa. Regarding higher income percentage of people, the State of Iowa more than doubles the percentage of people compared to Spencer. In Spencer, there are 4.0% of families with incomes larger than $150,000 per year. The percentage of families in Clay County earning more than $150,000 during 2013 is 6.4% and 9.2% percent for the State of Iowa. Studying income distribution of a community compared to other communities can indicate an overall wealth and subsequent purchasing power, providing insight into the economic health of Spencer. For reference in this chapter, the following terms will be defined: household, family household, and nonfamily household. These terms will be used in the following chart. Household- A household consists of all the people who occupy a housing unit. A house, an apartment or other group of rooms, or a single room, is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live with any other persons in the structure and there is direct access from the outside or through a common hall. A household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or Median Household Income Median Family Income Per capita Income Spencer $45,688 $50,389 $53,183 $61,216 $64,563 $67,466 $29,271 $30,163 $30,166 Clay County Iowa Table 12 – 2015 Household, Family, & Per Capita Income - Spencer, Clay County & Iowa Source: U.S. Census Bureau, 2015 American Community Survey

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NW Iowa Planning & Development