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DEMOGRAPHIC ANALYSIS
<br /> • There is a strong correlation between household age and net worth. Households under the
<br /> age of 25 have substantially less net worth (median of$11,445) compared to households
<br /> between the ages of 55 and 64 (median of$402,094). Net worth declines as adults age into
<br /> their senior's years, which is likely due to these households spending down assets to
<br /> support their living costs following retirement?
<br /> TABLE D-7
<br /> NET WORTH BY AGE OF HOUSEHOLDER
<br /> ELK RIVER
<br /> (Number of Households)
<br /> 2012
<br /> IAge of Householder
<br /> Total Under 25 25-34 35-44 45-54 55-64 65-74 75+
<br /> 2012
<br /> Less than$15,000 1,311 206 412 232 153 85 75 147
<br /> $15,000 to$34,999 463 44 151 88 44 50 30 56
<br /> $35,000 to$49,999 257 15 98 63 36 27 6 12
<br /> $50,000 to$99,999 1,018 37 391 218 153 69 94 57
<br /> $100,000 to$149,999 847 12 269 236 157 90 38 44
<br /> $150,000 to$249,999 1,103 1 96 527 254 88 71 66
<br /> $250,000 to$499,999 1,491 0 149 275 660 302 70 34
<br /> $500,000+ 1,610 0 69 149 528 549 224 91
<br /> Total 8,100 314 1,635 1,790 1,986 1,260 608 507
<br /> Median Net Worth $159,712 $11,445 $63,390 $155,991 $291,475 $402,094 $230,626 $78,842
<br /> Average Net Worth $433,477 $24,519 $145,818 $261,985 $636,002 $1,056,643 $914,400 $383,747
<br /> Data Note: Net Worth is total household wealth minus debt,secured and unsecured.Net worth includes home equity,equity
<br /> in pension plans,net equity in vehicles,IRAs and Keogh accounts,business equity,interest-earning assets and mutual fund
<br /> shares,stocks,etc.Examples of secured debt include home mortgages and vehicle loans;examples of unsecured debt include
<br /> credit card debt,certain bank loans,and other outstanding bills.Forecasts of net worth are based on the Survey of Consumer
<br /> Finances,Federal Reserve Board.Detail may not sum to totals due to rounding.
<br /> Sources: ESRI;Maxfield Research Inc.
<br /> • With significant residual net worth in later life (median of$78,842 among age 75+
<br /> households), many seniors will have sufficient funds to cover the costs of living in senior
<br /> housing alternatives. The segment of age 75+ seniors with little or no net worth will rely on
<br /> public subsidies in order to receive housing and services that meet their needs.
<br /> • Households often delay purchasing homes and instead choose to rent until they acquire
<br /> sufficient net worth to cover the costs of a down payment and closing costs associated with
<br /> home ownership. This will be especially true in the short-term as tightening lending
<br /> requirements make mortgages with little or no down payments more difficult to obtain.
<br /> MAXFIELD RESEARCH INC. 24
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