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How Do Economic Developers Measure ‘Quality of Life’?

November 7, 2024 Michelle Black

How do economic developers measure "quality of life"?

In Part 1 of this two-part series, I explained that the concept of quality of life is an essential, though somewhat intangible, factor in making a community desirable and fostering economic growth.

Quality of life affects whether people want to live, work, and thrive in a place. Communities prioritizing enhancing quality of life gain a strategic advantage in economic development. While specific factors vary, there are universally recognized contributors to a thriving community, including:

  • Amenities
  • Education quality and accessibility
  • Access to quality healthcare
  • Public safety
  • A clean and healthy environment
  • Housing options and availability
  • Transportation options and availability
  • Infrastructure quality and accessibility
  • Community engagement

In this installment, I will explain how to quantifiably measure quality of life by evaluating various social, economic, health, environmental, and other personal factors contributing to residents’ overall well-being. While there isn’t a single, definitive formula for calculating quality of life, various approaches and tools are used by economic developers to assess and measure it. Here are common steps used to evaluate the quality of life within a community, particularly in the context of economic development:

1. Define the Community-Specific Goals and Values

To effectively assess the quality of life within a community, consider both universal factors and community-specific values.

Engaging with residents to understand their priorities is crucial. This might involve conducting surveys, hosting community forums, or conducting interviews to determine what factors they consider important for a high quality of life, such as economic stability, social support, safety, or access to nature.

Based on this feedback, select relevant factors for measurement, such as health, education, housing, environmental quality, and economic stability. Tailoring the assessment to each community’s unique needs and aspirations allows for informed decisions to be made about how to improve overall well-being.

2. Identify Key Economic and Quality of Life Indicators

Choose indicators tied to both economic factors and quality of life, including but not limited to:

  • Amenities: Availability of outdoor recreation, cultural sites, dining, shopping, and community centers
  • Education: Access to quality schools, literacy rates, educational attainment, and continuing education
  • Health: Life expectancy, prevalence of chronic illnesses, mental health services, healthcare access, and the number and size of local healthcare facilities
  • Safety: Crime rates, public perception of safety, police presence (number of officers per capita), and emergency response times
  • Environment and Infrastructure: Clean air and water, availability of green spaces and parks, public transportation and facilities, road quality, and waste management
  • Economic Stability: Employment rate, average income, poverty level, cost of living, and housing affordability and availability
  • Community Engagement: Social services, support networks, community activities, and volunteerism

3. Gather Data for Each Indicator

Using objective and subjective data sources is vital to gather comprehensive data for each QOL indicator. This involves collecting both quantitative and qualitative data. Quantitative data can be obtained through local surveys, US Census data, government databases, paid databases, and collaborations with local health departments, educational institutions, economic development boards, etc. Qualitative data can be gathered through community meetings, focus groups, interviews, and workshops.

Data and trends can be analyzed to identify patterns. Additionally, community observations, such as walkability audits and asset mapping, can provide valuable insights into the physical environment and community resources. Community engagement activities can also directly assess residents’ own perceptions of their quality of life.

Data Analysis

Review demographic, economic, health, education, crime, and environmental data to understand trends.

  • Demographic Data: Analyzing demographic data can provide insights into the community’s population, age distribution, and socioeconomic characteristics.
  • Economic Indicators: Data on employment, income, and poverty rates can help assess the community’s economic health.
  • Health Indicators: Analyzing data on mortality rates, morbidity rates, and access to healthcare can provide insights into the community’s health status.
  • Education Indicators: Data on educational attainment, school performance, and access to educational opportunities can help assess the community’s educational well-being.
  • Crime Rates: Analyzing crime statistics can provide insights into the community’s safety and security.
  • Environmental Indicators: Data on air and water quality, green spaces, tree canopy, and noise pollution can help assess the community’s environmental quality.

Community Observations

Conducting walkability audits and community asset mapping is necessary to better understand a community’s physical environment and resources. Walkability audits assess the ease and safety of walking within neighborhoods, providing insights into infrastructure, accessibility, and overall pedestrian experience.

On the other hand, community asset mapping identifies and inventories community assets like parks, libraries, and community centers, helping to assess the availability and quality of resources and opportunities within the community.

Community Engagement

Engaging with the community provides a comprehensive understanding of their quality of life. Focus groups and interviews grant in-depth discussions and qualitative insights into residents’ perceptions. Community meetings and workshops provide platforms for direct engagement, facilitating the identification of priorities and concerns.

Additionally, surveys and questionnaires, such as community satisfaction surveys and quality of life surveys, can gather quantitative data on residents’ satisfaction with specific aspects of community life, including housing, transportation, education, healthcare, safety, recreation, mental health, social connections, and overall life satisfaction.

4. Assign Weights to Each Indicator and Calculate an Overall Quality of Life Score

When calculating an overall quality of life score, data for each indicator is standardized to a common scale, such as 0-100, and graded. Weights are then assigned to each indicator, with the total of all weights equaling 100. Areas deemed critical, such as health or safety, often receive higher weights to reflect their importance in overall well-being.

Each indicator’s standardized/graded score is then multiplied by its assigned weight, and the weighted scores are summed to arrive at the final quality of life score.

Example Calculation

For a community with indicators weighted as follows: Health (20%), economic stability (30%), education (15%), safety (15%), and environment (20%).

Health score: 80 (weighted: 80 x 20% (0.2) = 16)

Economic stability score: 70 (weighted: 70 x 30% (0.3) = 21)

Education score: 85 (weighted: 85 x 15% (0.15) = 12.75)

Safety score: 75 (weighted: 75 x 15% (0.15) = 11.25)

Environment score: 90 (weighted: 90 x 20% (0.2) = 18)

The overall quality of life score for the community would be 16 + 21 + 12.75 + 11.25 + 18 = 79.

It’s important to note that quality of life is a complex and multifaceted concept; no single measure can capture all its dimensions. Different methods and tools may be more appropriate for different purposes and contexts.

What to Do With This Information

Once the quality of life score is calculated, it is important to analyze and interpret the results.

  • Compare the current score with past scores or those of similar communities to reveal trends and highlight areas for improvement.
  • Identify lower-scoring areas to help communities prioritize actions that enhance quality of life.
  • Share the findings with stakeholders, residents, and policymakers to promote transparency, engagement, and informed decision-making.

These insights can guide priorities for projects and policies, like improving infrastructure or expanding social services, to address specific needs and elevate overall community well-being.

This process not only assesses quality of life but also encourages targeted strategies that reflect the community’s unique needs and values. Through integrating diverse data sources and thoroughly analyzing the results, policymakers and community leaders can comprehensively view the community’s well-being.

This analysis helps identify trends, challenges, and opportunities, leading to informed strategies that enhance residents’ quality of life.

Are you looking to boost your community’s quality of life? Camoin Associates offers an array of economic development consulting services that can help get you there, including strategic planning, workforce development and talent attraction, housing needs assessments, business attraction and retention, and entrepreneurship and innovation.

Learn more about our services