ATL Income Inequality

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Black income in Atlanta projected to lag behind all other groups' for centuries.

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See our methodology

Explore other findings

No End in Sight

Using U.S. Census data, we explored prior trends regarding income inequality in Atlanta, compared Atlanta to other wealthy and/or unequal cities, and made projections for the future.

Income projections for 2223 compared to highest earners (Asians)

Median Income projections for 2223

Black household income has consistently lagged behind all other racial groups for decades. In 2022, the median income for White households was more than $70,000 higher that of Black households. If we continue along this path, in 200 years, Hispanics in Atlanta can expect an income of nearly the same as their White counterparts but the income of Atlanta's Black population will remain disproportionately lower than other demographics'.

No End in Sight

$31,388

$74,522

$43,468

$25,359

Difference between Black & White Household Income

Difference between Hispanic & White Household Income

City of Atlanta 2022

Metro Atlanta 2022

Hispanic household median income (HMI) is considerably closer to White HMI than Black HMI is.

PERCENT CHANGE IN BLACK INCOME

METRO ATL VS. THE CITY

A DOWNWARD TREND IN INCOME INEQUALITY?

According to the Gini Index, in 2022, Atlanta was not the most unequal city, or even the second or third most unequal. However, an analysis of 12 major cities revealed that the gap between Black and White household median income is the 2nd largest in Atlanta.

LARGE POPULATION, SMALL INCOME

IS THE GINI INDEX THE MOST TELLING MEASURE OF INEQUALITY?

From 2021 to 2022, Black household median income in Atlanta rose by 18%.

The average annual percent change in median income for Black households is slightly higher than that of white households, though not enough to bridge the gap.

Black Americans are the largest ethnic group in Atlanta but continue to fall behind all other demographics in terms of income.

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Income inequality is much more severe in the city than the metro area.

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According to the Gini Index, income inequality has been trending downwards in the city of Atlanta since 2019. This most likely points to a larger issue of gentrification and displacement, rather than a positive change.

What else did we learn?

Across the entire metro area though, the inequality is not as stark as it is in the city.

Partnership for Southern Equity's Metro Atlanta Racial Equity Atlas shows that the southwest of the city earns less than the more northern areas of the city

City of Atlanta

Metro Atlanta

Maps reveal that the inequality in Atlanta is race and location based

Difference in Black and White Median Household Income

2010201120122013201420152016201720182019202020212022

$0

$120k

$90k

City of Atlanta

Metro Atlanta

$60k

$30k

The average difference between White and Black median income in the city of Atlanta is more than double the difference across the metro area.

Income inequality is much more severe in the city than the metro area.

48%

of Atlanta

In 2022, Black residents made up

But they continue to fall behind all other groups when it comes to income.

Median Household Income in the City of Atlanta, 2022

$49,526

$80,580

$124,048

$125,163

$53,149

Black Households

American Indian or Alaskan Native Households

Hispanic Households

White Households

Asian American Households

Black Atlantans are the biggest demographic group in the city...

Black HMI

American Indian or Alaskan Native HMI

Hispanic HMI

Asian HMI

White Household Median Income (HMI)

$0

$30K

$60K

$90K

$120K

$150K

Median Income Over Time

This isn't a new trend.Black Americans in Atlanta Have Fallen Behind for Years

American Community Survey 2010-2021 1 year estimatesCensus Bureau 2022

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What's the Gini Index?

But we found out that at least according to the Gini Index, Atlanta is no longer the most unequal city.

In fact, Atlanta is commonly referred to as the most unequal city in the country.

So, why do our findings contradict the common narrative?

We looked at the most recent U.S. Census data.

2020 data is being recirculated and accepted as current. For instance, in November 2022, the Atlanta Journal Constitution (AJC) published an article titled “Atlanta has the highest income inequality in the nation, Census data shows,” which cited then recent 2020 data on the Gini index. Now, this claim is being repeated and forwarded in other directions, including in articles published as recently as 2024.

What’s driving the difference in our findings? Most of the recently published articles on income inequality in Atlanta are citing old data.The U.S. Census releases the American Community Survey (ACS) 1 year-estimates in the following autumn of each year, with the most current data from 2022 released in the fall of 2023. However, the data most often cited is from 2020, which, due to the pandemic, is based on experimental estimations from past data rather than new data collected. This means that our understanding of income inequality is based on data from 2016 through 2020.

From 2019-2022, the Gini Coefficient in the city of Atlanta decreased by ~8%.

Source: U.S Census Bureau American Community Survey 1 year estimate (Note, for 2020 5 year estimates were used)

0.500.45

0.600.55

Gini Index Score Over Time

City of Atlanta

Metro Atlanta

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Does this signify a positive change or is it a symptom of a much greater problem of displacement and gentrification?

67%

48%

Income inequality has been trending downwards in the city of Atlanta since 2019

Least unequal

Most unequal

The city of Atlanta's Gini index score ranks 8/12 when compared to other major cities.

Metro Atlanta's Gini Coefficient is lower than that of the metro areas of all of the other cities analyzed.

Gini Index Score, 2022 (City)

Bubble Size = GDP in 2021

High inequality in the city

Low inequality in the city

Low inequality in the metro area

High inequality in the metro area

Gini Coefficient, Metro Area (2022)

Gini Coefficient, City (2022)

We chose to analyze cities that either had been highlighted in the media recently for having high income inequality or cities that were similar to in Atlanta in that they host a large number of Fortune 500 companies.

In our analysis, we analyzed 12 different major cities and their metro areas across the U.S: Atlanta, Boston, Cincinnati, Chicago, Dallas, Houston, Los Angeles, New Orleans, New York, San Francisco, Tampa, and Miami.

How does Atlanta compare to other major cities?

But is Atlanta really more equal than these cities?

Atlanta

Over the last few years, the city of Atlanta's Gini Coefficient dropped below 7 of the major cities in the analysis.

Want to know who's who? Click here to see a color-coded version of this graph.

How does Atlanta compare to other major cities?

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Atlanta is the fourth fastest gentrifying city in the U.S.

The city of Atlanta is becoming wealthier and whiter. We theorize that the drop in the Gini index in the city (and the relatively unchanged Gini score in the metro area) represents a larger problem of gentrification and displacement.

Atlanta is the fourth fastest gentrifying city in the U.S.

Source: Dan Immergluck, Red Hot City: Housing, Race, and Exclusion in Twenty-First Century Atlanta

67%

48%

Percentage of Atlanta's Population that Identifies as Black

Source: 2019, The Atlanta Journal Constitution, https://www.ajc.com/news/breaking-news/atlanta-ranked-fourth-fastest-gentrifying-city/E74wz9VxF5TxWcsUinKRmK/ ; Federal Reserve Bank of Philidelphia

Could a decreasing Black population in the city of Atlanta explain the drop in the Gini Index?

So, what do we propose?

Every individual has distinct contributions to make and tremendous power to shape the future. We can build a collective mosaic of change if we individually act with urgency and creativity.

Changemakers should embrace a new level of imagination, vision and courage in calling for radical change.

Changemakers of all sorts should revisit whether current strategies to address racial disparities are adequate to magnitude of the task . A follow-up question can be, “What will it take to move the needle on Black income in Atlanta?”

You choose

be bold

FAce Facts

Our Call to Action

All Gini index scores and household median income data were sourced from the American Community Survey 1-year estimates via data.census.gov. Note that for all 2020 data, 5-year estimates were used due to a of lack of 1-year estimate data available. To be considered for the analysis, the 11 comparison cities had to meet at least one of the following criteria:

• Reputation of some of the highest rates of income inequality (e.g., New Orleans, Tampa, Miami, Chicago, Cinncinnati, Bostom)
• Hosts large numbers of Fortune 500 companies (e.g., Houston, Dallas, Los Angeles, San Francisco, New York)

GDP data was sourced from the Bureau of Economic Analysis and are expressed in current dollars. Income projections were made based off of all available data dating from 2010 to 2022.

Our Methodology

Source: The Partnership for Southern Equity's Metro Atlanta Racial Equity Atlas

There are two methods that can be used to calculate the Gini Coefficient and both land on the same value. The first way measures the average gap in income between any two sets of people. The second method calculates how far each person's income falls from the average income.

How is the Gini Coefficient Calculated?

Although the annual rate of change fluctuates drastically for both groups, the average annual change rate for White households is slightly less than that of Black households, wih roughly one percent difference between the two.

From 2010-2021, the average rate of change in median income for Black Households was slightly higher than the rate of change for white households.

48%

of Atlanta

In 2022, Black residents made up

$49,526

$80,580

$124,048

$125,163

$53,149

Black Households

American Indian or Alaskan Native Households

Hispanic Households

White Households

Asian American Households

Median Household Income in the City of Atlanta, 2022

Despite making up such a large portion of Atlanta, Black households continue to earn a median income that falls well below the rest of the city's demographics

No End in Sight

Black income in Atlanta projected to lag behind all other groups' for centuries.

IT PERSISTS, REGARDLESS OF THE CITY'S ECONOMIC GROWTH.

WE NOTICED A SHORTAGE OF RESEARCH ON INCOME INEQUALITY IN ATLATNA OVER TIME.

new data recently became available

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Why did we investigate inequality in atlanta?

ATLANTA HAS A LONG REPUTATION OF BEING "THE MOST UNEQUAL CITY IN AMERICA."

Understanding past trends allows us to explore where we're headed.

In 2018, WABE published an article that mentioned the Brookings Institution rated the city's wealth disparity as the highest in the United States for three out of the last five years."

Before that, in 2012, the business journals published an article, saying "Atlanta has the worst income inequality than any other major city"

We found articles dating back to over 10 years ago that discussed Atlanta's severe income inequality.

trending downwards

It is a popular metric used for measuring income inequality. The index ranges from 0 to 1, with 0 signifying complete equality and 1 representing total inequality. There are two methods that can be used to calculate the Gini Coefficient and both land on the same value. The first way measures the average gap in income between any two sets of people. The second method calculates how far each person's income falls from the average income.

What's the Gini Index?