New survey shows poor economic conditions impacting community improvements

ST. LOUIS (KMOX) - High prices mean St. Louisans are putting more essential purchases on their credit cards.

That's one finding of the Federal Reserve's Community Perspective Survey, which looks at low-to-moderate income groups compared to the broader economy.

"Wages have increased a little bit, but what people are sharing is that wages are just not keeping up with high cost of living," said Nishesh Chalise with the St. Louis Fed on Total Information A.M. "People then start relying on credit card debts, with higher interest rates. It's very easy to get trapped in this debt cycle."

Nishesh Chalise, Senior Manager of Community Development with the St. Louis Fed, tells KMOX the goal of their Community Perspective Survey is to understand economic conditions in low-to-moderate income communities.

"St. Louis area median income right now I believe is $97,000," said Chalise. "Their local moderate income is about between 30 to 80 percent of that income. If your family's income falls in that band, then you are considered local moderate income."

Chalise says while unemployment rates in low-income communities have improved, the wages those jobs pay have not. Housing is one of the biggest concerns.

Chalise notes that almost half of the survey respondents said current conditions for economic mobility are poor, especially for renters and homeowners.

He adds that while employment has improved recently in low-to-moderate income communities, challenges like job quality, low wages, and limited career advancement opportunities persist.

"Almost 85 percent of the respondents says conditions were woeful for renters, and 71 percent said the same thing for home ownership," said Chalise.