Naples, Florida, downtown skyline at dusk. Collier County, which includes wealthier cities like … [+]
Average household income, or as called more precisely by the Census Bureau, mean household income, is quite different from median household income. For example, a city’s median household income is the income of the household that’s at the 50% point of the entire distribution of households in that city. In contrast, the mean household income is the average of all the households and their respective incomes for the entire city.
This difference between median and mean, or average, household income is crucial to understand: Average household income can be distorted by a small number of households that earn outsized incomes compared to the rest of the area; these high-income households will then “pull” the average household income for, say, a county upward. However, these high-income households do not have the same effect on the median household income since that’s simply the household whose income is right at the halfway mark between the whole range of households, from the lowest-earning to the highest-earning, in a given area. Thus, a large difference in a city or county between its mean household income and its median household income implies that income inequality is an issue.
Florida stands out when it comes to income inequality. The Gini index is a measure of income inequality, in which zero represents perfect equality and one represents perfect inequality. According to the Census Bureau’s newly released 2021 American Community Survey Five-Year Estimates, for the United States overall, its Gini index is 0.4818. For the state of Florida, its Gini index is higher, 0.4850. Florida is the sixth most unequal state in terms of income out of all 50 states, trailing behind:
- New York – Gini index: 0.5138
- Connecticut – Gini index: 0.4972
- Louisiana – Gini index: 0.4965
- California – Gini index: 0.4874
- Massachusetts – Gini index: 0.4852
Average Income in Florida vs. Median Income in Florida
What makes Florida particularly interesting when it comes to income inequality is its incredibly diverse population and socio-economic climate. It’s a state that’s home to millions of transplanted retirees, mixed with large numbers of lower-income service workers, mixed with ostentatious wealth in cities like Miami and its surroundings. That’s why we analyzed Florida by analyzing all of its counties in terms of the gap between average household income and median household income. We then created a map to better display just how large this gap in income inequality can get.
Below you’ll find the Florida county map that details each county’s mean household income, median household income, and the difference between them (with median household income being subtracted from mean household income). The darker the red the county, the greater the gap between the county’s average household income and median household income; yellow shades are the counties in the middle; and the darker the green the county is, the smaller the gap between the county’s average household income and median household income.
Based on the data and the Florida county map, Collier County displays the greatest difference between average household income and median household income, at $45,134: Its mean household income of $120,677 minus its median household income of $75,543. Collier County encompasses wealthier cities such as Marco Island (median income of $93,134 and mean income of $148,234) and Naples (median income of $125,306 and mean income of $248,988), as well as lower-income places like Immokalee (median income of $40,144 and mean income of $57,397). In Collier County, 37.2% of households earn $100,000 or more alongside 33.1% of households that earn less than $50,000. Not surprisingly, the Gini index in Collier County is 0.5264 (versus the U.S.’s 0.4818), making the county the second most unequal in terms of income, behind only Hardee County, whose Gini index is 0.5343. Hardee County features 56.6% of households that earn less than $50,000 while 15.1% of households earn $100,000 or more.
Based on the data and the Florida county map, Collier County displays the greatest difference between average household income and median household income, at $45,134: Its mean household income of $120,677 minus its median household income of $75,543. Collier County encompasses wealthier cities such as Marco Island (median income of $93,134 and mean income of $148,234) and Naples (median income of $125,306 and mean income of $248,988), as well as lower-income places like Immokalee (median income of $40,144 and mean income of $57,397). In Collier County, 37.2% of households earn $100,000 or more alongside 33.1% of households that earn less than $50,000. Not surprisingly, the Gini index in Collier County is 0.5264 (versus the U.S.’s 0.4818), making the county the second most unequal in terms of income, behind only Hardee County, whose Gini index is 0.5343. Hardee County features 56.6% of households that earn less than $50,000 while 15.1% of households earn $100,000 or more.
The southern tip of Florida is home to many of the counties with the highest income inequality. Martin County, which has the third highest Gini index of income inequality of 0.5238, has an average household income of $108,358 versus a median household income of $69,769, for a difference of $38,589. Palm Beach County, which stretches from West Palm Beach and Boca Raton on the Atlantic coast westward to Florida’s rural interior, has the fifth highest Gini index of income inequality at 0.5199. Similarly, Monroe County, which covers much of the Everglades National Park and the Florida Keys, has the sixth highest Gini index of income inequality at 0.5157.