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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 />Less than $15,000 1,031 101 306 203 145 133
<br />56 87
<br />$15,000 to $34,999 401 53 125 83 54 42
<br />16 26
<br />$35,000 to $49,999 268 25 90 65 35 28
<br />14 11
<br />$50,000 to $99,999 957 40 278 255 157 95
<br />61 71
<br />$100,000 to $149,999 638 14 168 140 122 85
<br />69 41
<br />$150,000 to $249,999 1,034 14 223 256 217 161
<br />86 77
<br />$250,000+ 3,771 1 210 642 1,095 861
<br />602 359
<br />Total 8,100 247 1,401 1,644 1,826 1,405
<br />905 671
<br />Median Net Worth $215,064 $20,584 $75,767 $171,652 $250,001 $250,001
<br />$250,001 $250,001
<br />Average Net Worth $632,168 $45,783 $158,099 $445,138 $735,457 $983,767
<br />$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
<br />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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