Household Income In Michigan Increased During Pandemic: See New Data

MICHIGAN — Median household income slightly increased in Michigan in 2021, compared with two years earlier before the start of the pandemic, according to a new report from the Census Bureau.

Nationally, median household income remained about the same in 2021 versus pre-pandemic 2019, increasing a meager $78 to $69,717, according to American Community Survey responses. The last time median household income flatlined or went down was in 2013.

At the same time, the so-called “Gini index,” which measures wealth and income inequality, increased by 0.8 percent nationally. The wealth gap also widened in 21 states and the District of Columbia.

Survey responses from 2020 were thrown out of the comparison. Responses were down during pandemic disruptions, and those who did respond had statistically different social, economic, and housing situations than those who did, leading to “unreasonable estimates,” the Census Bureau said.

Michigan was not among the 10 that bucked the national trend with statistically significant increases in household income as the state's average jumped only by 0.6 percent, which was slightly higher than the 0.1 percent increase in median income that was reported nationally.

The median household income in Michigan was $63,498 in 2021, compared with $63,145 in 2019.

The Gini index in Michigan also by less than 1 percent over the past two years, going from 0.463 in 2019 to 0.466 in 2021.

In the greater Detroit area, however, the median household income fell slightly over the past year, going from $67,268 in 2019 to $67,153 in 2021, the data indicated.

Importantly, the report looks at median rather than average income. The median is the middle point in the data set that includes income distribution above and below it, including those without income.

The Gini index ranges from 0 to 1, with 0 representing perfect equality with a proportional distribution of income, and 1 representing perfect inequality, according to the report.

Some other findings:

• White, Asian, and Hispanic households saw the greatest increase in median household income between 2019 and 2021. Income remained about the same in Black households.
• Households headed by householders aged 25 to 44 experienced an increase in median household income between 2019 and 2021 while households maintained by householders 65 years and older experienced a decrease.
• The other age groups saw no significant change in median household income.