Why Philadelphia must Grow and Diversify
its Middle Income Population
its Middle Income Population
At the start of the 1970s, middle-income residents comprised 59 percent of Philadelphia's population of almost two million people. By 2010, with around 400,000 fewer residents, only 42 percent of the city's people qualified as middle-income. This significant shift in the city's population resulted in an ongoing demographic imbalance that also negatively effects the socioeconomic diversity of the city. Today, almost 1 in 4 residents lives in poverty, and among the top 30 US-populated cities, Philadelphia is ranked near the bottom for annual median household income.
While Philadelphia has worked to manage its demographic imbalance, many mid-to-large sized US cities saw population expansion as well as a notable increase in diversity. This was due in large part to immigrants, and the relocation of 1st and 2nd generation families spreading out to new cities across the country. Philadelphia's story has been quite different. In the latter half of the 20th century, according to a 2023 Pew Report, Philadelphia was considered a "low-immigration city". Things have been changing since the early 2000s, but overall, Philadelphia's growth does not parallel peer cities in sheer numbers, demographic characteristics, and particularly, in the influx of 1st and 2nd generation families.
For example, Hispanics are America's largest minority group, yet in Philadelphia, the Latino population is relatively small for a top 10 US city (see chart below), and unlike every other top 10 city in America where its largest Latino subgroup is comprised of immigrants, Philly's largest Latino subgroup is that of Puerto Ricans who are natural-born American citizens.
While Philadelphia has worked to manage its demographic imbalance, many mid-to-large sized US cities saw population expansion as well as a notable increase in diversity. This was due in large part to immigrants, and the relocation of 1st and 2nd generation families spreading out to new cities across the country. Philadelphia's story has been quite different. In the latter half of the 20th century, according to a 2023 Pew Report, Philadelphia was considered a "low-immigration city". Things have been changing since the early 2000s, but overall, Philadelphia's growth does not parallel peer cities in sheer numbers, demographic characteristics, and particularly, in the influx of 1st and 2nd generation families.
For example, Hispanics are America's largest minority group, yet in Philadelphia, the Latino population is relatively small for a top 10 US city (see chart below), and unlike every other top 10 city in America where its largest Latino subgroup is comprised of immigrants, Philly's largest Latino subgroup is that of Puerto Ricans who are natural-born American citizens.
U.S. CITIES
by Overall Population Rank 1 - New York 2 - Los Angeles 3 - Chicago 4 - Houston 5 - Phoenix 6 - Philadelphia 7 - San Antonio 8 - San Diego 9 - Dallas 10 - Austin Source: US Census, 2020 Estimates |
OVERALL
POPULATION 8,804,190 3,898,747 2,746,388 2,316,120 1,680,992 1,584,064 1,547,253 1,423,851 1,343,266 974,447 |
HISPANIC POPULATION
2,417,676 1,910,196 776,290 1,044,120 725,394 241,425 998,698 431,477 553,420 311,823 |
HISPANIC PERCENTAGE
OF OVERALL POPULATION 27% 48% 28% 45% 43% 16% 65% 30% 41% 31% |
The city's demographic imbalance can contribute to social and economic dynamics that often go unnoticed. To the right is one example of many.
Continuing with the Latino theme, here you see a recent tour schedule for one of the Latin music world’s top music artists who is Puerto Rican. The largest Latino subgroup in the city is Puerto Rican and yet, the artist pictured was not scheduled to perform here, and in fact, hasn’t performed in Philly for years. Most major U.S. concert venues can average more Latino concerts in a month than Philly does all year. Missed opportunities like this harms the city's economy and weakens the city's brand. |
Philly's historic significance, as well as its vast big city amenities, are just a few notable elements that are generally not well understood or familiar to diverse populations outside of the region. This, combined with an affinity that diverse populations can have with US cities with which they identify both culturally and socially, can limit the visibility and consideration of our city with many groups.
When Philly's brand was not well understood or lacked connection to certain domestic populations, attraction strategies have served the city well; consider Visit Philadelphia and Campus Philly. The latter not only helps to retain bright minds our colleges and universities educate, it also helps to attract and connect talent to local employers. Visit Philadelphia's efforts not only attract tourists to the city, our hospitality industry is now a major driver for Philly's economy.
With Philadelphia facing major challenges, some may ask, why focus on growing the middle-income population? Shouldn't our priorities be squarely focused on poor or low-income neighborhoods? The answer is we must prioritize both. According to the Pew Charitable Trusts, "A vibrant and substantial middle class is widely considered essential for economic health and social stability in any community". Bruce Katz at the Lindy Institute for Urban Innovation at Drexel adds, "Urban neighborhoods function best when they contain families with a broad mix of incomes. Economic integration sets in motion a virtuous cycle of functioning markets, attractive amenities, quality schools, and other essentials of community life."
A larger middle-income population also contributes to the restoration of crucial rungs on the social and economic ladder that have eroded over time and prevented many in low-income communities from accessing greater social and economic mobility and thus, an enhanced quality of life.
When Philly's brand was not well understood or lacked connection to certain domestic populations, attraction strategies have served the city well; consider Visit Philadelphia and Campus Philly. The latter not only helps to retain bright minds our colleges and universities educate, it also helps to attract and connect talent to local employers. Visit Philadelphia's efforts not only attract tourists to the city, our hospitality industry is now a major driver for Philly's economy.
With Philadelphia facing major challenges, some may ask, why focus on growing the middle-income population? Shouldn't our priorities be squarely focused on poor or low-income neighborhoods? The answer is we must prioritize both. According to the Pew Charitable Trusts, "A vibrant and substantial middle class is widely considered essential for economic health and social stability in any community". Bruce Katz at the Lindy Institute for Urban Innovation at Drexel adds, "Urban neighborhoods function best when they contain families with a broad mix of incomes. Economic integration sets in motion a virtuous cycle of functioning markets, attractive amenities, quality schools, and other essentials of community life."
A larger middle-income population also contributes to the restoration of crucial rungs on the social and economic ladder that have eroded over time and prevented many in low-income communities from accessing greater social and economic mobility and thus, an enhanced quality of life.
Javier Suarez is Executive Director at Live Work Philadelphia, a domestic Resident Attraction marketing program.
To learn more, contact Javier by clicking here.
To learn more, contact Javier by clicking here.