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DEMOGRAPHIC ANALYSIS
<br /> individual, the value of a person's assets, including cash, minus all liabilities. The amount by
<br /> which the individual's assets exceed their liabilities is considered the net worth of that person.
<br /> • Data in the table is calculated as the total value of a household's wealth less any debts
<br /> (unsecured or secured by assets). Overall, the median net worth of a household in Elk River
<br /> is about$215,064 and the average is $632,168.
<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$20,584) compared to households
<br /> between the ages of 55 and 64 (median of$250,001). 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 /> 2015
<br /> Age of Householder
<br /> Total Under 25 25-34 35-44 45-54 55-64 65-74 75+
<br /> Less than$15,000 1,031 101 306 203 145 133 56 87
<br /> $15,000 to$34,999 401 53 125 83 54 42 16 26
<br /> $35,000 to$49,999 268 25 90 65 35 28 14 11
<br /> $50,000 to$99,999 957 40 278 255 157 95 61 71
<br /> $100,000 to$149,999 638 14 168 140 122 85 69 41
<br /> $150,000 to$249,999 1,034 14 223 256 217 161 86 77
<br /> $250,000+ 3,771 1 210 642 1,095 861 602 359
<br /> Total 8,100 247 1,401 1,644 1,826 1,405 905 671
<br /> Median Net Worth $215,064 $20,584 $75,767 $171,652 $250,001 $250,001 $250,001 $250,001
<br /> Average Net Worth $632,168 $45,783 $158,099 $445,138 $735,457 $983,767 $1,151,689 $578,786
<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&Consulting,LLC.
<br /> • With significant residual net worth in later life many seniors will have sufficient funds to
<br /> cover the costs of living in senior housing alternatives. The segment of age 75+ seniors with
<br /> little or no net worth will rely on public subsidies in order to receive housing and services
<br /> 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&CONSULTING,LLC. 21
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