As of 2017, the Richmond area’s median household income was $67,633, compared with $60,336 for the nation.

On the negative side, the Richmond metro area had 5,318 fewer households in 2017 when compared with 2016. Even more concerning was the loss of more than 10,000 one-person households, many of whom are young adults.

If the loss of these one-person households is a result of them getting married and forming two-person households, then we would expect the census data to show about a 5,000 gain over the same period in two-person households.

But the number of two-person households in the Richmond area actually fell by more than 1,000 in 2017. Based on this analysis, it appears that the loss of low-income, younger households contributed to the fast growth in median income for the area.

The median household income is the benchmark where half of the region’s households earn more than this amount. When low-income households move out, this benchmark will go up even if everyone earns the same income as in previous year. The preferred driver would be a gain in the number of households and income increases across age cohorts.