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 seismic population shift produced a demographic imbalance that continues to impact the city and its level of socioeconomic diversity. Today, among key socioeconomic indicators, Philadelphia has the highest poverty rate among major U.S. cities and is ranked 27th for annual household income among the top 30 US-populated cities.
As the demographic imbalance took hold in Philly, numerous mid-to-large sized American cities experienced resident growth while becoming significantly more diverse in large part to an influx of immigrants, and the arrival of first and second generation US families who moved away from traditional immigrant U.S. points of entry. Philly's story has been quite different. According to a 2016 Pew Report focused on immigration, from 1970 to 1990, scholars tagged Philadelphia a "low immigration" city. After 1990, the influx of immigrants to the city became a larger source for population growth, but it did not parallel peer cities in numbers, demographic characteristics, and in the influx of 2nd generation families.
For example, Hispanics are America's largest minority group (62 million people), yet Philadelphia's Latino population is relatively small for a large US city, and unlike every other top 10 city in America where its largest Latino subgroups are comprised of immigrants, Philly's largest Latino subgroup is that of Puerto Ricans who are natural-born American citizens. The chart below provides a snapshot of the Latino population across America's top 10 cities.
As the demographic imbalance took hold in Philly, numerous mid-to-large sized American cities experienced resident growth while becoming significantly more diverse in large part to an influx of immigrants, and the arrival of first and second generation US families who moved away from traditional immigrant U.S. points of entry. Philly's story has been quite different. According to a 2016 Pew Report focused on immigration, from 1970 to 1990, scholars tagged Philadelphia a "low immigration" city. After 1990, the influx of immigrants to the city became a larger source for population growth, but it did not parallel peer cities in numbers, demographic characteristics, and in the influx of 2nd generation families.
For example, Hispanics are America's largest minority group (62 million people), yet Philadelphia's Latino population is relatively small for a large US city, and unlike every other top 10 city in America where its largest Latino subgroups are comprised of immigrants, Philly's largest Latino subgroup is that of Puerto Ricans who are natural-born American citizens. The chart below provides a snapshot of the Latino population across America's top 10 cities.
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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 |
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% |
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Philadelphia's current 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 the 2021-22 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 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, limits job growth, and negatively affects the psyche of our residents. Ultimately, it also weakens the city's brand. |
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Though Philadelphia is the 6th largest city in the US, its history, vast urban amenities, and its lower cost of living among US northeast corridor cities, are elements that are generally not well understood or familiar to diverse populations. Along with the lack of familiarity, there is an attachment or brand affinity that individual diverse communities outside of the region can have with US cities with which they identify both culturally and socially, which has helped to keep Philly's brand generally unknown from various segments of the US population.
In the past, when the city's brand was not well understood or lacked connection to certain domestic populations, strategic attraction initiatives have served the city well; consider Visit Philadelphia and Campus Philly. The latter not only helps to retain the bright minds the city's colleges and universities educate, but it also helps to attract and connect young talent to local employers. Visit Philadelphia's efforts not only welcome new visitors to the city, it has elevated the city's hospitality industry as a major economic driver. Attraction strategies work, and we believe the city requires one for new residents, especially to focus on middle-income new residents who best represent the diversity and ethnic landscape in America.
With the City of Philadelphia facing considerable challenges, some may ask, why focus on growing the middle-income population? Shouldn't the focus be solely on poor or low-income neighborhoods? The answer is we must focus on 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 those who remain in low-income communities from accessing greater social and economic mobility and an enhanced quality of life for themselves and their families.
In the past, when the city's brand was not well understood or lacked connection to certain domestic populations, strategic attraction initiatives have served the city well; consider Visit Philadelphia and Campus Philly. The latter not only helps to retain the bright minds the city's colleges and universities educate, but it also helps to attract and connect young talent to local employers. Visit Philadelphia's efforts not only welcome new visitors to the city, it has elevated the city's hospitality industry as a major economic driver. Attraction strategies work, and we believe the city requires one for new residents, especially to focus on middle-income new residents who best represent the diversity and ethnic landscape in America.
With the City of Philadelphia facing considerable challenges, some may ask, why focus on growing the middle-income population? Shouldn't the focus be solely on poor or low-income neighborhoods? The answer is we must focus on 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 those who remain in low-income communities from accessing greater social and economic mobility and an enhanced quality of life for themselves and their families.
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.