Median household income declines throughout Idaho

Promotions and raises may not be in Idaho’s future as median household income declined in 25 counties.

According to the U.S. Census Bureau Idaho’s statewide median household income fell 0.5 percent, from 47,015 in 2012 to 46,767 in 2013. Nine counties had median household incomes above the statewide median.

The lowest median income of 32,059 was in Madison County, which is down 5.1 percent. Luke Erickson, a personal finance expert with the University of Idaho Extension in Rexburg, said the biggest contributing factor to that number could be the increase of college students to Brigham Young University-Idaho.

“You get a lot more students, and what that does is bring that average income down,” said Erickson. “Many are either working part time or have no income at all.”

Economists said that median income also doesn’t reflect the increase of retiree’s throughout the community, who don’t have a source of income, but have a substantial amount saved for retirement.

Will Jenson of the Eastern Idaho Entrepreneurial Center’s Director of Business Research said lower income statistics could put a damper on the economy as businesses question profitability.

“You may see businesses look at that number, especially if they’re from outside the area and not familiar with the demographics of an economic make up of a county like Madison, they look at that as a negative thing,” he said. “It’s important to realize what kind of impact something like students have on a number like this and also retirees who aren’t earning income anymore, but have plenty to live off of.”

Blaine County with the Sun Valley Resort had the highest median household income in 2013 at $64,042, up 6.5 percent from the year before.

The census Bureau calculates median income by tracking the income point at which half the households have more and half have less.