Page 36 - Latino Boom II

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l a t i n o b o o m I I
The magic number, of course, is $40,000, which signifies entrance to
the middle class. Remember, we are a very young population, so you can
expect the number of middle-class Latinos to grow exponentially over
the next few decades. When you compare Hispanic household incomes
from 2000 to 2010 (see Figure 3.17), what you see is a dramatic
decrease
in the percentage of households earning under $35,000 a year and a
dramatic
increase
in households earning $75,000 to $100,000.
In fact, when you look at the average household incomes in the top
ten Hispanic DMAs, you can see that they are indeed very desirable,
ranging from a low of $51,395 in Phoenix to a high of $81,846 in San
Francisco.
And finally, in terms of disposable income, according to IHS Global
Insight’s 2011 Hispanic Market Monitor, Hispanic disposable income
grew 52 percent over the past seven years, outpacing the U.S. dispos-
able income growth by 21 percentage points (see Figure 3.19).
In its annual report on the Hispanic market,
Advertising Age
also
includes some data on discretionary spending, which they define as
“household spending on items such as education, reading, personal care,
alcohol, tobacco, apparel, dining out, donations, household furniture,
and numerous forms of entertainment.” According to the 2012 edition
Race or Ethnicity
Median Household Income
Hispanic
$40,200
White alone, non-Hispanic
54,200
Black alone, non-Hispanic
33,600
Asian alone, non-Hispanic
67,100
Other, non-Hispanic
50,700
ALL
50,000
Source: U.S. Census 2010 1 yr ACS
Figure 3.16
Household Income by Race, 2010