WASHINGTON – The latest U.S. Census Bureau data reveals persistent income inequality and racial earnings disparities in Washington state, despite some overall improvements in poverty rates, according to a report by the Economic Opportunity Institute (EOI).
Between 2023 and 2024, Washington saw a slight decrease in the overall poverty rate, dropping from 10.3% to 9.9%. However, this positive trend did not extend to all communities. Indigenous and Hispanic households experienced increased poverty rates, highlighting ongoing disparities.
The Census data sets a poverty threshold for a family of three at an annual income below $26,650 in 2025. This figure starkly contrasts with the average cost of rent for a two-bedroom apartment in Seattle, which is about $35,500 per year. Additionally, this threshold does not account for varying living costs across different locations, such as Bellevue and Ritzville.
Racial earnings gaps have worsened, with real median earnings decreasing for Asian, Indigenous, and Black communities by 2%, 3%, and 4% respectively. These groups continue to earn significantly less than White and Asian households, underscoring a troubling trend in the state, EOI stated in the report.
Income inequality in Washington has also increased, making it the 15th most unequal state in the country. The lowest 20% of income earners receive only 3% of the state’s total income, while the top 5% earn 22%, the report added.
