$
ANNUAL THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY
VOL. 6 WINTER 2024
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 1
Acknowledgements This report would not be possible without the support and partnership of Robin Hood. We are especially grateful to all members of the Robin Hood team who provided feedback and support in the production of this report. We also would like to thank all of the Poverty Tracker interviewers at Columbia University, past and present — we would not be able to say much without their excellent work. Poverty Tracker research group at Columbia University Christian Baclao, Chantal Bannerman, Lily Bushman-Copp, Yiteng Cao, Chloé Cargill, Daniel Castillo, Alex Centeno, Eunho Cha, Sophie Collyer, Lolita Colon, Natalia Espinoza, Jose Fernandez Vargas, Qin Gao, Irwin Garfinkel, Alyssa Guerrero, Zachary Herzog, Sonia Huq, Yajun Jia, Anastasia Koutavas, Helen Leon, Jessica Liou, Xiaofang Liu, Morgan Lyons, Jessica McTeer, Angie Moran, Max Moran, Kathryn Neckerman, Tien Nguyen, Hailey Osborne, Pelumi Osinubi, Camilo Rincon, Gerardo de la Rosa, Annie Rose, Angelina Ross, Schuyler Ross, Daniel Salgado, Amber Shen, Julien Teitler, Ryan Vinh, Jane Waldfogel, Kahlen Washington, Christopher Wimer, Ho Yan Wong, Jieying Wu, Anke Yan, Christopher Yera Suggested citation Poverty Tracker Research Group at Columbia University (2024). The State of Poverty and Disadvantage in New York City, Volume 6. Robin Hood.
2 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
TABLE OF CONTENTS
INTRODUCTION AND KEY FINDINGS
2
SECTION 1: Citywide trends in income poverty, material hardship, and health problems in New York City
6
SECTION 2: Inequities in poverty, material hardship, and health problems 20
SECTION 3: Spotlight on affordability
26
SECTION 4: Overlapping experiences of disadvantage in New York City
34
CONCLUSIONS and what to expect going forward
41
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 1
INTRODUCTION AND KEY FINDINGS
• In 2022, nearly 500,000 more New Yorkers lived in poverty than the year prior. More than 1.5 million adult New Yorkers (23%) and nearly 420,000 children (25%) in New York City lived in poverty in 2022, up from 1.2 million adults (18%) and 260,000 children (15%) in 2021. • The increase in poverty between 2021 and 2022 follows the expiration of historic pandemic-era policy interventions that helped stabilize rates of adult poverty and reduced child poverty to record lows during the pandemic. • New Yorkers living below the poverty line were not the only ones struggling to get by in 2022 – more than 4.6 million New Yorkers (56%) had incomes below 200% of the poverty line in 2022 and a third (33%) classified as having low incomes, or incomes between 100-200% of the poverty line. • New Yorkers with incomes below 200% of the poverty line were twice as likely to experience difficulty paying for housing, energy and telephone bills, and food than those above 200% of the line, with almost 1 in 5 (19%) reporting that they lived paycheck-to-paycheck in the past 12 months. • Still, in 2022, government transfers and tax credits cut the adult poverty rate in New York City by 27% and the child poverty rate by 41%, keeping more than half a million adults and almost 300,000 children above the poverty line. These effects are less substantial than those in 2021, when govern- ment transfers and tax credits cut the adult poverty rate by 45% and the child poverty rate by 68%. • Rates of material hardship in New York City also increased in 2022, as roughly 29% of adults and 31% of children experienced material hardship – up from 24% and 26% in 2021, respectively. • In 2022, nearly a quarter (24%) of adult New Yorkers experienced a health problem, defined as reporting poor health or having a work-limiting health condition. • More than half (52%) of adult New Yorkers faced at least one form of disadvantage (poverty, material hardship, or health problems) in 2022.
2 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
In 2022, New York City welcomed some changes to everyday life as restric- tions associated with the pandemic eased and economic activity began picking up again. The city’s “return to normal,” however, was not without its difficulties, especially for low-income New Yorkers. The year also saw the sunsetting of pandemic-era policy reforms and income supports. These policy shifts, coupled with soaring rent prices and historically high levels of inflation, made affording the rising prices of basic necessities a challenge for all and impossible for many. Rents in New York City were among the highest in the country in 2022 1 and New Yorkers were hit hard by steep increases in the costs of energy, transportation, recreation, and food. 2 Prices rose at the same time as many of the unprecedented policy reforms enacted in response to the pandemic – including stimulus payments, the historic expansion to the Child Tax Credit (CTC), and the eviction moratoria, among others – expired, contributing to rising poverty rates 3 and economic hardships 4 nationwide. For many New Yorkers, the economic precarity brought on by income losses and rising prices was exacerbated, but not new. About 1 in 5 New Yorkers lived below the poverty line before the pandemic, and while rates of poverty and hardship fell in response to pandemic-era policies, these measures of disadvantage returned to their pre-pandemic levels in 2022. In this report, the sixth volume of the State of Poverty and Disadvantage in New York City, we use the latest data from the Poverty Tracker to examine how New Yorkers fared in 2022 as they faced the compounding effects of these economic shocks and policy changes. We examine income poverty, material hardship (i.e., chronic or acute inability to make ends meet), and health problems, measuring the prevalence of these forms of economic disadvantage, how they varied across subgroups, and the overlap between them. Our results show a return to pre-pandemic levels of poverty and hardship in 2022, alongside other continuing challenges: the city’s poverty rate remained well above the national average, and substantial disparities – particularly along racial and ethnic lines – persisted. The report also features a spotlight analysis on the affordability challenges faced by many New Yorkers, including those who are not in poverty. The results demonstrate that economic difficulties persist well above the poverty line, yet also highlight the continued need to support New Yorkers with the most limited resources. The results presented here, and those we have published over the last year, reemphasize that many New Yorkers are consistently facing economic burdens, which are exacerbated by the absence of income supports provided by federal, state, and local policy.
1 Lander et al., “New York by the Numbers Monthly Economic and Fiscal Outlook No. 70 – October 11th, 2022.” 2 Office of Budget and Policy Analysis and Office of the State Deputy Comptroller for the City of New York, “Inflation in the New York City Metropolitan Area.” 3 Shrider and Creamer, “Poverty in the United States: 2022.” 4 Rabbitt et al., “Household Food Security in the United States in 2022.”
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 3
KEY FINDINGS
In 2022,
More than 1.5 million adult New Yorkers (23%) and nearly 420,000 children (25%)
nearly 500,000 more New Yorkers lived in poverty than the year prior.
in New York City lived in poverty in 2022 , up from 1.2 million adults (18%) and 260,000 children (15%) in 2021.
The increase in poverty between 2021 and 2022 follows the expiration of historic pandemic- era policy interventions that helped stabilize rates of adult poverty and reduced child poverty to record lows during the pandemic.
$
2X
$
56%
New Yorkers with incomes below 200% of the poverty line were twice as likely to experience difficulty paying for housing, energy and telephone bills, and food than those above 200% of the line, with almost 1 in 5 (19%) reporting that they lived paycheck-to-paycheck in the past 12 months.
New Yorkers living below the poverty line were not the only ones struggling to get by in 2022 – more than 4.6 million New Yorkers (56%) had incomes below 200% of the poverty line in 2022 and a third (33%) classified as having low incomes, or incomes between 100-200% of the poverty line.
Still, in 2022, government transfers and tax credits cut the adult poverty rate in New York City by 27% and the child poverty rate by 41%, keeping more than half a million adults and almost 300,000 children above the poverty line. These effects are less substantial than those in 2021, when government transfers and tax credits cut the adult poverty rate by 45% and the child poverty rate by 68%.
4 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
31%
29%
Rates of material hardship in New York City also increased in 2022, as roughly 29% of adults and 31% of children experienced material hardship – up from 24% and 26% in 2021, respectively.
In 2022,
24%
52%
$
+
Nearly a quarter (24%) of adult New Yorkers experienced a health problem , defined as reporting poor health or having a work-limiting health condition.
More than half (52%) of adult New Yorkers faced at least one form of disadvantage (poverty, material hardship, or health problems) in 2022.
GUIDE TO THIS REPORT
GUIDE TO THIS REPORT
In sections 1, In section 1,
we focus on three types of disadvantage: income poverty, material hardship, and health problems (including psychological distress), and we present trends since 2015 for each type of disadvantage. w e analyze how these experiences differ for New Yorkers of different demographic groups. w e analyze how these experiences differ for New Yorkers of different demographic groups. we spotlight the challenges faced by New Yorkers in affording a decent standard of living above the poverty line. we examine overlapping experiences of disadvantage among New Yorkers, again looking at poverty, material hardship, and health problems. w e examine overlapping experiences of disadvantage among New Yorkers, again looking at poverty, material hardship, and health problems. w e focus on three types of disadvantage: income poverty, material hardship, and health problems (including psychological distress), and we present trends since 2015 for each type of disadvantage. we spotlight the challenges faced by New Yorkers in affording a decent standard of living above the poverty line.
In section 2,
In section 2,
In section 3,
In section 3,
In section 4,
In section 4,
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 5
SECTION 1
CITYWIDE TRENDS IN INCOME POVERTY, MATERIAL HARDSHIP, AND HEALTH PROBLEMS IN NEW YORK CITY
HIGHLIGHTS
INCOME POVERTY
n The rising poverty rates between 2021 and 2022 coincided with the expiration of many pandemic-era policy reforms which had contributed to historically low poverty rates in 2021. n In 2022, government transfers and tax credits cut the adult poverty rate in New York City by 27% and the child poverty rate by 41%, keeping more than half a million adults and nearly 300,000 children above the poverty line. These effects are less substantial than those in 2021, however, when govern- ment transfers and tax credits cut the adult poverty rate by 45% and the child poverty rate by 68%. n 2022 saw notable increases in poverty among both adults and children in New York City, with the adult poverty rate rising from 18% to 23% and the child poverty rate from 15% to 25%.
MATERIAL HARDSHIP
n In 2022, 29% of adults in New York City experienced material hardship – marking a return to pre-pandemic levels after rates had fallen to 24% in 2021. n Increases in the share of children facing material hardship were also notable – rising from 26% to 31% between 2021 and 2022. n It is not only those living in poverty who struggle to make ends meet: material hardship is even more widespread than poverty.
HEALTH PROBLEMS AND PSYCHOLOGICAL DISTRESS
n In 2022, 24% of New Yorkers experienced a health problem, defined as reporting poor health or having a work-limiting health condition, and a third (33%) faced either a health problem or serious psychological distress.
6 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
Launched in 2012, the Poverty Tracker surveys a representative sample of New Yorkers several times throughout the year, providing critical information on the dynamics of poverty and other forms of disadvantage in the city. Unlike other surveys, the Poverty Tracker explores how New Yorkers experience poverty and material hardship over time, rather than in a single day, month, or year. In addition, the Poverty Tracker focuses on more than just income poverty. Annually, the study collects all data necessary to measure three forms of economic disadvantage: income poverty, material hardship, and health problems. We use these measures to understand how certain disadvantages, or multiple, overlapping disadvantages, make it harder for New Yorkers to get by. Here, we examine trends in these key indicators of economic disadvantage between 2015 and 2022 for adults in New York City and for children (where possi- ble). We start by discussing income poverty, then turn to material hardship, and close with health problems. In each section, we provide additional information on how we define and measure these indicators.
MATERIAL HARDSHIPS
INCOME POVERTY
HEALTH PROBLEMS
DISADVANTAGE (income poverty or material hardships or health problems)
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 7
INCOME POVERTY IN NEW YORK CITY
The Supplemental Poverty Measure (SPM) Every September, the U.S. government releases the latest results on national poverty using the Official Poverty Measure (OPM). The OPM was developed in the 1960s and compared families’ total before-tax cash income with a poverty line, or threshold. The threshold was defined as three times the cost of a minimally adequate food budget during that time. With the exception of some minor adjustments, this measure has only been updated annually to account for changes in inflation. Over time, this formula has become increasingly outdated. Food costs have become less important in family budgets, while things like housing and child care have become costlier. A focus on before-tax cash income ignores benefits that many families receive through the tax system, such as the Earned Income Tax Credit, or in noncash form, such as food stamps or housing vouchers. Importantly, the poverty threshold under the OPM does not vary with costs of living, particularly housing costs, which are notoriously high in New York City. The SPM improves the measurement of poverty on all of these fronts. The poverty threshold is based on contemporary spending on food, as well as on other necessities like clothing, shelter, and utilities. The poverty threshold in places like New York City is also higher given its higher-than- average housing costs, and the threshold is different for renters and homeowners. In 2022, the SPM threshold for a two-adult, two-child family of renters in New York City was $43,890. In the SPM, tax credits and noncash benefits are also counted as income, and for families who incur them, medical, work, and child care costs are subtracted from income. The Poverty Tracker collects all the requi- site data necessary to directly calculate the SPM in its sample of New Yorkers, and this data forms the basis of our income poverty statistics. The Poverty Tracker measures poverty in New York City using the SPM. The New York City government also tracks trends in the city’s poverty rate using the NYCgov Poverty Measure. There are slight differences between the construction of the SPM and the NYCgov Poverty Measure, thus they produce slightly different annual poverty rates. The differences between the NYCgov Poverty Measure and the SPM are discussed in the NYCgov Poverty Measure annual report. 5
5 Learn more about the NYCgov Poverty Measure at https://www1.nyc.gov/site/opportunity/index.page
8 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
In 2022, overall poverty rates both in New York City and nationally rose back to pre-pandemic levels, coin- ciding with the expiration of many of the historic – but temporary – policy interventions at the end of 2021. More than 20% of New Yorkers lived in poverty each year between 2015 and 2017, but the poverty rate began to decline both in New York City and nationally in 2018 (see Figure 1.1 ; see the text box for discus- sion of the Poverty Tracker’s income poverty measure). One might be surprised that the poverty rate did not increase significantly in 2020 and 2021 amid the economic challenges brought on by the COVID-19 pan- demic, but as we discuss below, government policy played a significant role in preventing the poverty rate from rising in these years and actually led to stable poverty rates from 2019 to 2021. Despite the progress made in reducing poverty in recent years, poverty rates in New York City and nationally increased signifi- cantly in 2022, returning to pre-pandemic levels after the expiration of historic – but temporary – policy reforms at the end of 2021.
Overall poverty rates in New York City and nationally (2015–2022) Figure 1.1
New York City
National
40%
30%
23%
22%
22%
21%
20%
19%
18%
20%
17%
14%
14%
14%
13%
10%
12%
12%
9%
8%
0%
2019
2020
2022
2017
2018
2015
2016
2021
Source: New York City results based on annual Poverty Tracker survey data, second through fifth Poverty Tracker cohorts. National results based on authors’ calculations using the Current Population Survey, retrieved from IPUMS-CPS, University of Minnesota, www.ipums.org. Note: In 2020, the Poverty Tracker sampling design changed to include an oversample of New Yorkers of Chinese descent, including those who speak Mandarin. Thus, pre-2020 results are not directly comparable to results from 2020 to the present, which we signify with a break in the New York City trend line. See Appendix B for additional details.
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 9
In 2022, 23% of adult New Yorkers and 25% of children in New York City lived in poverty. This is the highest annual child poverty rate observed in the Poverty Tracker data since 2015. The increase in poverty among New Yorkers in 2022 is evident among both adults and children. As seen in Figure 1.2, the adult and child poverty rates in New York City have been persistently high and well above national rates since before the pandemic, with roughly 1 in 5 adults and children in New York City living in poverty (see Figure 1.2). Between 2021 and 2022, the adult poverty rate increased from 18% to 23% in New York City and from 9% to 12% nationally. The increase in poverty was even more pronounced among children, as the share of children in poverty increased from 15% to 25% in New York City and more than doubled nationally from a historic low of 5% to 12%. 6
Adult and child poverty rates in New York City and nationally (2015–2022) Figure 1.2
New York City
National
30%
23%
22%
21%
21%
20%
18%
18%
20%
17%
14%
14%
13%
10%
12%
12%
12%
9%
9%
0%
2019
2020
2022
2017
2018
2015
2016
2021
30%
25%
20%
20%
20%
20%
18%
12%
16%
15%
14%
10%
12%
10%
5%
0%
2019
2017
2018
2020
2022
2021
Source: New York City results based on annual Poverty Tracker survey data, second through fifth Poverty Tracker co- horts. National results based on authors’ calculations using the Current Population Survey, retrieved from IPUMS-CPS, University of Minnesota, www.ipums.org. Note: In 2020, the Poverty Tracker sampling design changed to include an oversample of New Yorkers of Chinese de- scent, including those who speak Mandarin. Thus, pre-2020 results are not directly comparable to results from 2020 to the present, which we signify with a break in the New York City trend line. See Appendix B for additional details.
6 Shrider and Creamer, “Poverty in the United States: 2022.”
10 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
Government transfer and tax credits kept almost 300,000 children and more than half a million adults above the poverty line in 2022. Table 1.1 reports the number of New Yorkers kept out of poverty by government transfers and tax credits in 2021 and 2022. In 2022, these policies kept more than 500,000 adults and close to 300,000 children above the poverty line. The results point to the effective role policy can play in reducing poverty. Results from 2021 make this even clearer, as the temporary policy expansions under the 2021 American Rescue Plan (ARP) – alongside existing policy – kept more than 1.5 million New Yorkers (adults and children) above the poverty line. 7
Number of New York City adults and children kept out of poverty (2021 and 2022) Table 1.1
2021
2022
Adults
Children
Adults
Children
Pre-tax credit/transfer, rate Pre-tax credit/transfer, count Post-tax credit/transfer, rate Post-tax credit/transfer, count % change from credits and transfers N people kept out of poverty
33%
48%
31%
42%
2,216,000
841,000 2,064,000 705,000
18%
15%
23%
25%
1,209,000
263,000 1,531,000 419,000
-45%
-68%
-27%
-41%
1,007,000
578,000
533,000 286,000
Source: Annual Poverty Tracker survey data, second through fifth Poverty Tracker cohorts. Note: New York City Population size based on the American Community Survey data from the U.S. Census Bureau, see: https://www.census.gov/quickfacts/newyorkcitynewyork.
How do we evaluate the effects of government policy on poverty rates? The Poverty Tracker measures poverty in New York City using the Supplemental Poverty Measure — an improved measure to the Official Poverty Measure that allows us to isolate the impact that various policies have on the poverty rate. We assess the impact of government policy on poverty by identifying how many New Yorkers would be living in poverty when we do not include tax credits and government transfers as part of their income, 8 and then again when we do include these income sources. The former gives us the “poverty rate before tax credits and government transfers” and the latter the “poverty rate” as it is commonly reported. For brevity, we refer to the poverty rate before tax credits and government transfers as the “pre-tax-credit/transfer poverty rate.” 9 The difference between these two rates translates to the effect of government policy on the poverty rate.
7 To learn more about the 2021 American Rescue Plan and its poverty-reducing effects among adults and children in New York City in 2021, see: Poverty Tracker Research Group at Columbia University, “The State of Poverty and Disadvantage in New York City, Volume 5.” 8 Note that income is totaled at the family level and compared to a poverty threshold that is adjusted for family size. 9 This is the poverty rate before accounting for the tax credits and government transfers discussed in the text box.
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 11
What policies, tax credits, and government transfers are counted when evaluating the effect of government policy on the poverty rate? The results in Table 1.1 account for the role that the following government transfers and tax credits played in reducing the poverty rate in 2021 and 2022. CASH TRANSFERS: Income from the Supplemental Security Income program, Unemployment Insurance, and the Temporary Assistance to Needy Families (TANF) program. HOUSING SUBSIDIES: Government housing assistance and rent regulations (rent control and rent stabilization). NUTRITION PROGRAMS: Benefits from the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Assistance Program for Women, Infants, and Children (WIC), and free- and reduced-price school lunches. 10
TAX CREDITS: The Earned Income Tax Credit and the Child Tax Credit.
More than half of New Yorkers lived below 200% of the poverty threshold in 2022, which translates to $40,680 for single adults and $87,780 for a married couple with two children (in rental housing). The poverty line presents an estimate of how much a family needs to meet their basic needs. As such, it is a very low threshold — $43,890 for a family of four living in rental housing in New York City in 2022 (see Figure 1.3). However, it should be noted that having an annual income above this threshold is no guarantee that families will be able to meet their basic needs or will be shielded from experiences of material hardship. Those just above the poverty threshold — between 100% and 200% – are defined in the research literature as “low-income” 11 and, as shown in section 4 of this report, their experiences of material hardship are quite similar to those living below the poverty threshold. Approximately 1 in 3 (33%) New Yorkers fall into the category of “low-income,” and combined with those living below the poverty line, this amounts to more than half (56%) of the city’s population who are defined as either low-income or in poverty (see Figure 3.2). In our spotlight analysis in section 3, we further note the affordability challenges such New Yorkers experience and propose that 200% of the SPM poverty line can be used to better approximate what it takes to afford a more decent standard of living.
10 This does not include free or reduced priced breakfasts that are provided to children at school, free summer meals that are provided to children at school, or meals provided through the Child and Adult Care Food Program. 11 Rodems, “Hidden Hardship in the United States: Material Well-Being Above the Poverty Line.”
12 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
Poverty thresholds by family in New York City (families in rental housing) Figure 1.3
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 13
The Poverty Tracker collects measures of economic disadvantage beyond income poverty, including infor- mation on a comprehensive set of material hardships, which capture individuals’ ability to meet basic needs (see text box for definition). MATERIAL HARDSHIP IN NEW YORK CITY Measures of material hardship The Poverty Tracker measures material hardship across five domains (food, housing, bills, financial, and medical) and defines “material hardship” as having faced severe forms of food, housing, bills, and financial hardship, or any form of medical hardship.
Severe Bills Hardship
Severe Food Hardship
Severe Housing Hardship
Severe Financial Hardship
Medical Hardship
Material Hardship
Having to stay in a shelter or other place not meant for regular housing, or having to move in with others due to cost.
Having utilities cut off due to lack of money.
Often running out of money between paychecks or pay cycles.
Not being able to see a medical professional due to cost.
Running out of food or often
MEDICAL HARDSHIP: Facing any of these forms of hardship. Not being able to see a medical professional due to cost
worrying that food would run out with- out enough money to buy more.
It is not only those living below the poverty line who struggle to make ends meet: material hardship is even more widespread than poverty. In 2022, roughly 3 in 10 adults faced material hardship — a return to pre-pandemic levels and an increase from the year prior, when a quarter of adult New Yorkers experi- enced material hardship. New York is a high-cost city, and many New Yorkers living above the poverty line also struggle to keep food on the table and rent paid. In the pre-pandemic years, roughly 3 in 10 adults in New York City faced at least one form of material hardship and more than 1 in 10 faced multiple forms of hardship (see Figure 1.4). In 2021, however, we saw the material hardship rate fall to 24% as historic policy expansions provided much needed cash-assistance to New Yorkers reeling from the pandemic’s economic impacts. Despite this decline, rates of material hardship increased to pre-pandemic levels in 2022 as these policy expansions expired and New Yorkers grappled with record-high levels of inflation and increases in the cost of living. In 2022, 29% of adults in New York City faced at least one form of material hardship and 12% faced multiple forms. The share of children in families facing material hardship also increased to pre-pandemic levels be- tween 2021 and 2022, rising from 26% to 31% (see Figure 1.4). 12
12 We do not have data on this comprehensive set of hardships at the national level for comparison, but national estimates of food inse- curity also show rates increasing in 2022 alongside increases in poverty. See: Hall, “Food Insecurity Increased in 2022, With Severe Impact on Households With Children and Ongoing Racial Inequities.”
14 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
Adult and child hardship rates in New York City (2015–2022) Figure 1.4
Any hardships
Multiple hardships
40%
34%
30%
33%
33%
32%
29%
29%
28%
24%
20%
16%
15%
14%
10%
13%
12%
12%
12%
10%
0%
2019
2020
2022
2017
2018
2015
2016
2021
40%
38%
37%
36%
35%
30%
31%
26%
20%
17%
13%
12%
17%
16%
14%
10%
0%
2019
2022
2017
2018
2020
2021
Source: Annual Poverty Tracker survey data, second through fifth Poverty Tracker cohorts. Note: Hardship rates for children from 2017-2019 are calculated using 3 years of data, while rates in 2020 forward are calculated using single years of data given the rapid changes in economic conditions and policy following the COVID-19 pandemic. Child hard- ship rates from 2020 forward may thus be subject to more year-to-year variability than years prior to the pandemic due to increased sampling error. Year-to-year changes for children after 2020 should thus be interpreted with caution. In 2020, the Poverty Tracker sampling design also changed to include an oversample of New Yorkers of Chinese descent, including those who speak Mandarin. Thus, pre-2020 results are not directly comparable to results from 2020 to the present, which we signify with a break in the trend lines. See Appendix B for additional details.
Figure 1.5 shows rates of material hardship by domain for adults, as well as the share of children facing each form of hardship. Between 2021 and 2022, we see increases in hardship across nearly all domains for both adults and children.
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 15
Prevalence of each form of material hardship among adults and children (2021 and 2022) Figure 1.5
Among adults
4% 4%
2021 2022
Severe Housing Hardship
5%
2021 2022
Severe Bills Hardship
7%
6%
2021 2022
Severe Food Hardship
7%
12%
2021 2022
Severe Financial Hardship
13%
13%
2021 2022
Medical Hardship
16%
10%
0%
5%
15%
20%
Among children
3%
2021 2022
Severe Housing Hardship
4%
7%
2021 2022
Severe Bills Hardship
9%
7%
2021 2022
Severe Food Hardship
9%
14%
2021 2022
Severe Financial Hardship
16%
11%
2021 2022
Medical Hardship
13%
10%
0%
5%
15%
20%
Source: Annual Poverty Tracker survey data, second, third, fourth, and fifth Poverty Tracker cohorts.
16 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
HEALTH AND MENTAL HEALTH IN NEW YORK CITY
Challenges to health, such as work-limiting health conditions and psychological distress, are tied to expe- riences of hardship and poverty, as they can limit one’s ability to secure income and can be costly. In this section, we examine the prevalence of health problems, which include poor self-rated health, work-limiting health conditions, and psychological distress across the city’s adult population.
Measuring Health Problems The Poverty Tracker asks New Yorkers to self-rate their health and if they have any work-limiting health conditions. Responses to these questions are used to measure health problems.
Work-limiting health condition
Serious psychological distress
Poor health
Health problems
Respondents answered “poor” when asked to rate their health on a five-point scale from excellent to poor.
Respondents indicated they had a work- limiting health condition when asked.
Having a work-limiting disability or self- reporting one’s health as “poor.”
Identified as having serious psychological distress according to the Kessler-6 scale. 13
Identified as having serious psychological distress according to the Kessler-6 scale.13
In 2022, roughly 1 in 4 adult New Yorkers faced a health problem, defined as reporting poor health or having a work-limiting health condition. In 2022, about a quarter (24%) of adult New Yorkers reported having a health problem, and a third (33%) faced either a health problem or serious psychological distress (see Figure 1.6). The notable increases in the share of New Yorkers experiencing either a health problem or symptoms of depression and anxiety (serious psychological distress) coincides with the end of policy expansions in 2021 and historic increases in inflation and the cost of living in 2022 – indicating that these experiences may be the consequence of, or may have been exacerbated by, increased strains on income and experiences of hardship. These experiences also put New Yorkers at an increased risk of poverty and hardship. We explore the overlap between experiences of poverty, hardship, health problems, and psychological distress in section 4 of the report.
13 See Kessler et al., “Short Screening Scales to Monitor Population Prevalences and Trends in Non-Specific Psychological Distress."
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 17
Rates of health problems and serious psychological distress among adults in New York City (2016–2022) Figure 1.6
Health problems or serious psychological distress
Health problems
40%
33%
31%
29%
30%
27%
26%
25%
25%
24%
20%
22%
22%
22%
21%
21%
20%
10%
0%
2020
2021
2022
2018
2019
2016
2017
Source: Annual Poverty Tracker survey data, second through fifth Poverty Tracker cohorts. Note: In 2020, the Poverty Tracker sampling design changed to include an oversample of New Yorkers of Chinese de- scent, including those who speak Mandarin. Thus, pre-2020 results are not directly comparable to results from 2020 to the present, which we signify with a break in the trend lines. See Appendix B for additional details.
When examining citywide rates of poverty, hardship, and health problems across the years, 2022 stands out. Despite promising developments in 2021, rates of poverty, hardship, and health problems increased back to pre-pandemic levels in 2022. Rates of material hardship returned to levels seen before 2020, and increases in poverty were especially pronounced for children and their families. The share of New Yorkers experiencing health problems were also similar to pre-pandemic levels (though somewhat elevated), and, as we will show in the next section, substantial disparities in exposure to economic disadvantage along racial and ethnic lines and between other population subgroups persist. Taken together, the results point to the need for more robust and long-lasting – rather than temporary – policy tools as well as the need for additional action to bolster the economic security and health of New Yorkers.
18 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 19
SECTION 2
INEQUITIES IN POVERTY, MATERIAL HARDSHIP, AND HEALTH PROBLEMS
45%
HIGHLIGHTS
n In 2022, economic disadvantage continued to be significantly more common among Asian, Black, and Latino New Yorkers than among white New Yorkers, pointing to structures of inequity that reproduce economic disadvantage along racial and ethnic lines. n Latino New Yorkers were twice as likely to live in poverty compared to white New Yorkers (26% vs. 13%), and rates were similarly elevated among Asian and Black New Yorkers (24% and 23%, respectively). n Female New Yorkers experienced higher rates of all forms of disadvantage than male New Yorkers, and histories of gender-based income and social inequity may provide some explanation for these significant differences. n New Yorkers born outside of the U.S. also faced higher rates of poverty than U.S. born residents, but a lower prevalence of health problems. n Differences in the levels of disadvantage among New Yorkers were also present by location, with experiences of all forms of disadvantage being highest in the Bronx.
20 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
It is well known that: (1) poverty, material hardship, and health problems are not equally distributed across demographic groups and (2) policy plays a role in creating and mitigating inequities. For example, racially discriminatory employment policy, housing policy, and criminal justice policy — to name just a few domains — are known to compromise the economic security of people of color, and Black individuals in particular. In addition, immigration policy affects the economic stability of non-citizens and their families. 14 Unpaid family leave and sick leave policy — a challenge that New York City and New York State have taken on — are also known to play into gender pay gaps that result from taking maternity leave and caring for children. Disproportionate transportation investment in Manhattan versus other boroughs has also introduced variation in access to economic opportunity within the city. These are just some examples of the ways that policy can create inequity, but as we have highlighted in this report, policy also plays a critical role in lowering disadvantage. In Figure 2.1, we document inequities in rates of poverty, hardship, and health problems in 2022 across racial and ethnic groups. 15 While the Poverty Tracker does collect data on individuals that identify as multiracial or a race or ethnicity other than Asian, Black, Latino, and white, we are unable to reliably produce robust estimates for these groups due to sample size constraints. This points to the fact that certain racial ineq- uities can be erased due to barriers to collecting data about smaller racial and ethnic groups such as the American Indian or Alaska Native (AIAN) population, who face high levels of poverty at the national level. 16 In 2022, disadvantage was significantly more common among Asian, Black, and Latino New Yorkers than among white New Yorkers, pointing to structures of inequity that reproduce disadvantage along racial and ethnic lines. Latino New Yorkers were twice as likely to live in poverty compared to white New Yorkers (26% vs. 13%), and rates were similarly elevated among Asian and Black New Yorkers (24% and 23%, respectively). Beyond poverty, in 2022, Latino New Yorkers faced a strikingly high rate of material hardship: 42%. Hard- ship was also more prevalent among Black and Asian New Yorkers than white New Yorkers (35%, 22%, and 16%, respectively). In terms of health, white and Asian New Yorkers had a similar prevalence of health prob- lems, 18% and 16%, respectively, but similar to other measures of disadvantage, Latino New Yorkers expe- rienced the highest prevalence of health problems, at 28%, followed by Black New Yorkers at 26%. Among other factors, varying rates of health problems can be attributed to environmental and/or work conditions that vary by racial and ethnic groups. 14 Recent work from the Poverty Tracker and the New York City Department of Social Services shows how changes in the “public charge” designation during citizenship applications led to a significant drop off in SNAP enrollment among non-citizens and increased use of food pantries, which, while providing a lifeline in a time of emergency, are known to have disadvantages compared to SNAP benefits. 1 5 See Appendix A for details on how the Poverty Tracker identifies respondents’ race and ethnicity. 16 See Shrider and Creamer, “Poverty in the United States: 2022.”
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 21
Rates of poverty, hardship, health problems, and disadvantage by race/ethnicity (2022) Figure 2.1
Poverty rate
24%
Asian, non-Latino Black, non-Latino Latino Multiracial or another race/ethnicity* White, non-Latino
23%
26%
22%
13%
Prevalence of material hardship
22%
Asian, non-Latino Black, non-Latino Latino Multiracial or another race/ethnicity* White, non-Latino
35%
42%
31%
16%
Prevalence of health problems
16%
Asian, non-Latino Black, non-Latino Latino Multiracial or another race/ethnicity* White, non-Latino
26%
28%
26%
18%
Prevalence of disadvantages (poverty, material hardships, or health problems)
44%
Asian, non-Latino Black, non-Latino Latino Multiracial or another race/ethnicity* White, non-Latino
57%
64%
54%
36%
10%
20% 30% 40% 50% 60% 70%
0%
Source: Annual Poverty Tracker survey data, second through fifth Poverty Tracker cohorts. Note: Results for subgroups based on three-year average of 2018, 2019, and 2022 data. *Interpret with caution due to sample size constraints.
22 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6
The portrait of disadvantage in 2022 (presented on the following pages) highlights other inequities in economic disadvantage across demographic groups. For example, female New Yorkers experience higher rates of all forms of disadvantage than males, and histories of sex- and gender-based income and social inequality may provide some explanation for the significant differences in these rates. 17 New Yorkers born outside of the U.S. also face higher rates of poverty and hardship than U.S. born residents, but a lower prevalence of health problems. This may be attributed to the immigrant health paradox, an observed phenomenon of better health among immigrants (compared to non-immigrants) upon their arrival to a new country, alluding to the strength and endurance required to make such a transition. 18 There is also substantial variation in poverty, hardship, and health problems by educational attainment, and New Yorkers with a high school degree or less are significantly more likely to face all of these forms of disadvantage than New Yorkers with a college degree. Rates of economic disadvantage also vary by age. Expectedly, New Yorkers age 65 and over have a higher prevalence of health problems than working-age New Yorkers ages 18-64 (38% vs. 18%). Poverty rates are also higher among New Yorkers over age 65 compared to working-age New Yorkers (24% vs 18%), though material hardship is more common among working-age New Yorkers than those age 65 and older (31% vs 18%). Differences in the levels of disadvantage among New Yorkers are also present across boroughs. The pov- erty rate is highest in the Bronx (23%), although Queens (22%) and Brooklyn (20%) also experience higher rates of poverty than Manhattan (18%). Similarly, residents of the Bronx experience much higher rates of material hardship than residents across the other boroughs, at 35%. More than 1 in 4 residents of Brooklyn, Manhattan, and Queens faced material hardship (27%, 27%, and 29%, respectively), as did more than 1 in 5 Staten Island residents (22%). The prevalence of health problems is also notably higher in the Bronx than in other boroughs. Roughly a quarter of Bronx residents (26%) experience health problems; this rate is 7 percentage points higher than in Queens (19%), 3 percentage points higher than in Manhattan (23%), and 2 percentage points higher than in Brooklyn (24%). Each borough differs in its amenities, from infrastructure to health resources and economic activities. In part, the geographic composition, environmental circumstances, and infrastructural limitations of each borough – especially those outside of Manhattan – can explain the varying rates of disadvantage expe- rienced by their residents. Though the rates of poverty, material hardship, and health problems in Staten Island are notably lower than those of the other boroughs, we note that these results should be interpreted with caution, as there is a smaller number of Staten Island residents in our sample. These results highlight how such inequities will continue to persist without intentional policies to narrow — and eventually close — these long-standing gaps. 17 Poverty Tracker respondents are asked to select their gender from the options of male or female. The terms male/female are more commonly associated with sex, and though this is a distinctly different category than gender, we utilize the provided survey lan- guage throughout the report to be most consistent with respondents' selections. In addition, beginning in 2020, the Poverty Tracker began collecting data on other identities than male and female. Due to the recent addition of this survey question, small sample size constraints and anonymity concerns inhibit us from including this data in our report. 18 Markides and Rote, “Immigrant Health Paradox.”
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 23
PORTRAIT OF DISADVANTAGE IN NEW YORK CITY IN 2022
In 2022, 23% of adults in New York City lived in poverty, 29% faced at least one form of material hardship, and 24% experienced health problems; 52% endured one or more of these forms of disadvantage.
Relative to white New Yorkers, all other racial and ethnic groups experienced significantly higher rates of DISADVANTAGE. Asian, Black, and Latino New Yorkers were around twice as likely to live in POVERTY than white New Yorkers. (24%, 23%, and 26%, vs. 13%)
New Yorkers born in another country had higher POVERTY rates and HARDSHIP rates than New Yorkers born in the U.S. (25% vs. 17% and 30% vs. 28%)
New Yorkers born in another country were less likely to experience HEALTH PROBLEMS than New Yorkers born in the U.S. (20% vs. 24%)
26%
24% 23%
24%
non-U.S. born 20%
13%
U.S. born
Black Latino White
Asian
Compared to white New Yorkers, MATERIAL HARDSHIP was more than twice as common among Black New Yorkers and almost three times as common among Latino New Yorkers. (16%, 35%, 42%)
New Yorkers with a high school degree or less faced substantially higher rates of DISADVANTAGE than those with a college degree.
42%
35%
16%
Black Latino
White
POVERTY rates were three times as high among New Yorkers with a high school degree or less relative to those with a college degree (32% vs. 10%) .
Female New Yorkers were more likely than males to face all forms of DISADVANTAGE.
3x
POVERTY rates for females were 5 percentage points higher than for males (23%, 18%) , the rate of MATERIAL HARDSHIP was 7 percentage points higher (32%, 25%) , and the rate of HEALTH PROBLEMS was 5 percentage points higher (25%, 20%) .
MATERIAL HARDSHIP was also more common among New Yorkers with a high school degree or less than those with a college degree (35% vs. 20%) , as were HEALTH PROBLEMS (32% vs. 14%) .
24 THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY VOL. 6 Note: Results for subgroups based on three-year average of 2018, 2019, and 2022 data.
POVERTY rates in New York City vary by age group, with adults 65 years old and over experiencing higher rates than working-age New Yorkers (those ages 18 to 64). (24% vs. 18%)
New Yorkers ages 65 and older also experience HEALTH PROBLEMS at more than twice the rate of working-age New Yorkers age 18 to 64. (38% vs. 18%)
Conversely, rates of MATERIAL HARDSHIP for New Yorkers age 65 and over are lower than those of working-age New Yorkers. (18% vs. 31%)
38%
31%
24%
18%
18%
18%
18-64 years
65 years +
18-64 years
65 years +
18-64 years 65 years +
Rates of disadvantage in the Bronx were substantially higher than those in Manhattan. Poverty rates were also higher in Queens and Brooklyn than Manhattan.
Poverty Rates BRONX: BROOKLYN: MANHATTAN:
Rates of Material Hardship BRONX: 35% BROOKLYN: 27% MANHATTAN: 27% QUEENS: 29% STATEN ISLAND: 22%*
23% 20% 18% 22% 16%*
QUEENS:
STATEN ISLAND:
Rates of Health Problems BRONX: 26% BROOKLYN: 24% MANHATTAN: 23% QUEENS: 19% STATEN ISLAND: 21%*
Overall Disadvantage BRONX:
57% 49% 49% 48%
BROOKLYN: MANHATTAN:
QUEENS:
STATEN ISLAND:
46%*
*Interpret with caution due to sample size constraints. Note: Results for subgroups based on three-year average of 2018, 2019, and 2022 data.
THE STATE OF POVERTY AND DISADVANTAGE IN NEW YORK CITY 25
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