In July 2005 Lakewood Public Library prepared a Claritas P$YCLE report, which yields a broad snapshot of Lakewood’s income and asset mix. A taste of that report is here:
Group 1 – Wealth Market
These millionaire households with income-producing assets of over $1 million command a disproportionate share of U.S. income and a substantial portion of income-producing assets. They are peak consumers of all investment products, particularly deposit products and private banking services.
The Wealth Market group includes 524 households in Lakewood (2.03 % of all Lakewood households)
Group 2 – Upscale Retired
The Upscale Retired group includes retired households with more than $35,000 per year in household income and less than $1 million in income-producing assets. Ninety-one percent of this group owns their homes. This group ranks highest for two-member households, and the members tend to use retirement, investment, and credit products at a high rate.
The Upscale Retired group includes 626 households in Lakewood (5.65% of all Lakewood households).
Group 3 – Upper Affluent
These households have annual incomes in excess of $75,000 and income-producing assets under $1 million. They include rising, educated young executives; small business owners; and established professionals. They are heavy users of nearly all banking and investment products including money market accounts, credit cards, annuities, and personal lines of credit.
The Upper Affluent group includes 4,688 households in Lakewood (18.16% of all Lakewood households) and consists of the following segments:
Group 4 – Lower Affluent
Lower affluence is a relative term since these households are still well-above average in terms of household income, making $50,000 to $74,999 per year. They are more mainstream than their Upper Affluent peers and they tend to be employed as managers, professionals, or experienced craftsmen. However, they are similar to the Upper Affluent group in their use of financial services, but they maintain more modest balances and slightly lower penetration rates.
The Lower Affluent group includes 4,518 households in Lakewood (17.5% of all Lakewood households)
Group 5 – Mass Market
The middle market's appetite for credit is readily apparent in this large group. This group is solidly middle class – consisting of young families with children, new cars, and homes in the suburbs, and incomes averaging $30,000. They are prime targets for most credit products and have low usage rates for savings and investment products. However, as they age, their savings and investments increase.
The Mass Market group includes 9,257 households in Lakewood (35.86% of all Lakewood households)
Group 6 – Midscale Retired
The Midscale Retired group includes retired households with more than $35,000 per year in household income and less than $1 million in income-producing assets. This group ranks highest for one-member households, and eighty percent of this group owns their homes.
The Midscale Retired group includes 1,785 households in Lakewood (6.91% of all Lakewood households).
Group 7 – Lower Market
Lower Market households have incomes below $15,000 and income-producing assets under $100,000. With many living below the poverty line, these families struggle with the financial demands of everyday living: rent, utilities, food, and transportation. Few are college graduates, and quite a few are unemployed. Their use of financial services focuses on the most basic products such as savings and checking accounts, money orders, and bill paying services.
The Lower Market group includes 2,244 households in Lakewood (8.69% of all Lakewood households).
For more detail see:
http://www.lkwdpl.org/focus/psycle2005.pdf
I think the range of incomes and assets captured here speaks to Mark’s point about a sorting of income that to a considerable degree defies the clear-cut suburb stratification.
I am currently reviewing the latest P$YCLE NE market data, which shows Lakewood capturing demos classified as “Younger Years,†and continuing to do so in 2010.
Lakewood’s top five P$YCLE NE segments classify in “Younger Years,†for 2005 and 2010.
These are
Forever Young (mid-scale) – 13.56%
Loan Rangers (mid-scale) - 9.29%
ATM Nation (up-scale) - 7.40%
Young Urban Renters (down-scale)- 6.62%
Fiscal Rookies (up-scale) - 4.88%
Broadly speaking, incomes are lower in “Younger Years.†And there is income stress among these cohorts.
But the P$YCLE NE projection for 2010 suggests more of the same for Lakewood.
There is dynamic quality that comes from the churn in “Younger Years†which comes and goes through Lakewood. As these segmentations shift to “Family Life,†many will depart from the Lakewood scene for suburban sorting and stratification Mark has cited.
I don’t believe this unhappy news, however.
I do believe that it is important to develop a sophisticated understanding that the dynamic, churning quality of the Lakewood market may have something to do with life stages, and how incomes and assets may propel someone to sort out from the eclectic mix, go gated, go suburban....
Kenneth Warren