Poverty in Austin Map the Starbucks stores
April 6, 2009 |12:31 | News By : Team X
Economically speaking, Austin is often described as two cities divided roughly by Interstate 35. Generally, the west side is more affluent, the east side less so. This is shown by reams of demographic data. Or you can try this: Count the number of Starbucks retail stores.
That's what we did in our Focal Point blog on after delving into a recent study "The Enduring Challenge of Concentrated Poverty in America: Case Studies from Communities Across the U.S." published by the Federal Reserve System and the Brookings Institution.
The research gives a statistical portrait of how the poor live in selected neighborhoods in Austin and 15 other communities across the country. "It shows that concentrated poverty is still very much with us and that it can be found among a much more diverse set of communities and families than previous research has emphasized," such as smaller cities of the South and West, the authors write.
Caveats- Their report predates the current economic recession, and its "East Austin" statistical data is primarily from the central East Austin/Rosewood Village neighborhood and the surrounding 78702 ZIP code roughly bounded by I-35, Lady Bird Lake, Manor Road and U.S. 183.
The study points out that although the gap between the richer and poorer sides of the city has lessened, the disparities are still striking. While the median household annual income of Austin families is about $50,000, in East Austin it's less than $16,000. About 15 percent of Austin residents don't have a high school diploma; in East Austin, the figure is 39 percent more at 54 percent.
How about the mortgage denial rate? It's 17 percent citywide versus 24 percent in central East Austin. And the unemployment rate? Four percent in Austin, 12.5 percent in East Austin. But what about other, even more tangible signs of wealth disparities? What about the Starbucks count?
The Seattle-based coffee chain has 40 retail stores in the Austin area within a 10-mile search radius, according to its. The outlets are widely viewed as a reliable harbinger of gentrification, a sign that a neighborhood is gaining or has gained a critical mass of people willing to pay for Starbucks food or coffee beverages.
By that measure, apparently East Austin has a long way to go. According to Starbucks' map of 40 outlets in the Austin area, only two are situated east of I-35. One is at Texas 71 and Riverside Drive, on the way to the airport; the other is in the Mueller redevelopment near East 51st Street.
A Starbucks spokesman, who declined to be identified by name, gave this explanation by e-mail: "Starbucks carefully considers many factors when selecting locations for our stores, one of the most important of which is that members of the community have shown support for a Starbucks coffeehouse and the unique experience it provides."
When the Starbucks map was posted on the Statesman's Focal Point blog, many readers pointed to other real-life examples of economic disparities. "It makes me laugh every time I hear or see groups from N, S and W cry and complain about some WalMart or other shop opening up in their neighborhood. Try traveling 5 to 10 miles for good groceries, WalMart or hardware stores," wrote a reader identified as "Eastsider."















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