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US Poverty Rate Hits 12.6%

October 20, 2023
US Poverty Rate Hits 12.6%
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The U.S. Census Bureau has announced that the number of people living in poverty in the United States has increased by approximately 1.5 million, reaching nearly 41 million between 2019 and 2022. This surge in poverty has elevated the national poverty rate to 12.6%.

A new report by the Brookings Institution, a non-profit organization in the United States, reveals that poverty is increasing more rapidly in American suburbs, with a threefold rise compared to major cities.

The report indicates that nearly 47% of the U.S. population resides in suburbs, while 21% live in major cities. Additionally, 18% of the population lives in small to medium-sized areas, and 14% reside in rural regions.

It is noteworthy that suburban communities in the Southern, Western, and Midwestern states, including Washington, D.C., Houston, San Francisco, Utah, St. Louis, and Minneapolis, have witnessed the largest increases in poverty in recent years. Notably, no suburban community has seen a decrease in its impoverished population between 2019 and 2022.

The report attributes the shift in poverty geography in America to a variety of factors, including rising housing costs in urban areas, an increase in mobile and affluent individuals relocating to cities over the past two decades, leading to rent hikes and higher home prices. This, in turn, has created a cost-of-living crisis in cities across the nation.

In recent years, housing costs have continued to rise, prompting many low-income individuals and families to move to the suburbs. Suburban communities have grown and attracted a larger population, while jobs, including low-wage employment, have increasingly moved out of the urban areas.

The report highlights that the rise in suburban poverty presents challenges to many suburban areas that lack strong public transportation systems, robust networks of non-profit organizations assisting low-income individuals, and well-funded social services.

According to the Brookings Institution, one out of every ten suburban residents in the United States lives in poverty, accounting for 9.6%, compared to one in every six individuals in major cities, at 16.2%. The geographic shift in poverty rates underscores the need for comprehensive policy responses and support systems tailored to the unique challenges faced by suburban communities amidst rising poverty rates.

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