What Can a Neighborhood's Name Say About the Wealth Status of People Living There?

Posted by West + Main Homes on Saturday, August 25th, 2018 at 5:46pm.

Whether it makes sense or not, the names and identifiers of our American communities and housing developments often say more about the people living there than we might realize.

A study done by Porch analyzes what's in a name, and the correlation between neighborhood name, housing prices, and average income. 

In some cases, the way a particular neighborhood is branded can be a direct response to how a community has changed over time, or it can help people feel a sense of connectedness or identity with the area in which they live. In 2016, census data determined the average household income in America was just over $59,000, only slightly above where it was in 2000. Of course, where you live in the U.S. and how old you are might also play a part in how much money you're likely to earn each year. As it turns out, your neighborhood might also say something about how much money you (and the people living around you) make.

In Colorado, for example, within 8 neighborhoods that feature the word "Village", the average household income was more than $175,000. 

Certain names and neighborhoods in each state may be a sign that residents earn more money on average, but there may also be a hefty price tag to live there.Across the country, we found areas with "Hills," "Island," and "Village" in the names reported the highest average household incomes, ranging from just over $77,000 to nearly $90,000 a year. Words associated with ocean destinations and seaside escapes, like "Island," "Beach," and "Harbor," had the highest home property values anywhere in America. 

Looking for communities where homes might be the least expensive overall? We found the lowest home values in areas with words like "Fort," "Junction," and "Rock" in their names, where homes were valued at nearly half the median price of $200,000.

To view more graphics and see how you can use this data to your advantage, check out the original study

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