Median household income is a gauge of overall economic health of the region and the financial resources of households. Examining income for different racial and ethnic groups is important as a measure of inequity.

In 2016-20, median incomes in Lancaster County were highest among Asian and white residents, at $73,109 and $71,564, respectively, and lowest among Hispanic and African American residents, at $47,573 and $44,549, respectively. The income disparity between white/Asian and African American/Hispanic earners was similar to the pattern of overall Pennsylvania and U.S. disparities. While Lancaster County median incomes were slightly above Pennsylvania averages for African Americans, Hispanics and whites, it was below U.S. median incomes for Hispanics and Asians, and slightly above the U.S. median for African Americans and whites.

Incomes were lower for all groups in the City of Lancaster: $36,985 for Asians, $42,627 for African Americans, $39,779 for Hispanics and $54,239 for whites.

Most groups in Lancaster County saw median incomes drop between 2000 and 2016-20, but Hispanics saw an increase.

These large and persistent disparities in income are the result of historic and current policies and practices that disadvantaged people of color. Research has connected slavery and the inability of black Americans even after emancipation to fully participate in economic life to the wealth and income gaps still present today. Structural racism perpetuated by policies and practices that systematically disadvantage African American and Latino communities include inequitable education, low wages, job and wage discrimination, lack of access to capital, and globalization. Even when a recovery from the current economic crisis occurs, it is not expected to make up for the pre-existing racial disparities experienced over time unless policies are enacted to address these gaps.

Figures are in constant 2020 dollars. The multi-year figures are from the Census Bureau's American Community Survey. The bureau combined five years of responses to the survey to provide estimates for smaller geographic areas and increase the precision of its estimates. However, because the information came from a survey, the samples responding to the survey were not always large enough to produce reliable results, especially in small geographic areas. CGR has noted on data tables the estimates with relatively large margins of error. Estimates with three asterisks have the largest margins, plus or minus 50% or more of the estimate. Two asterisks mean plus or minus 35%-50%, and one asterisk means plus or minus 20%-35%. For all estimates, the confidence level is 90%, meaning there is 90% probability the true value (if the whole population were surveyed) would be within the margin of error (or confidence interval). The survey provides data on characteristics of the population that used to be collected only during the decennial census. Data for this indicator are expected to be released in the fourth quarter.