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### Understanding American Community Survey Estimates
MTC relies heavily on the American Community Survey to understand regional social, housing, economic and demographic change. Every four years Equity Priority Communities data are updated using ACS data which informs planning, investment, and community engagement decision making. Given the importance of these data to our region, it is essential that decision makers have a clear understanding of the product and how it should be used.

Unlike the Census, ACS estimates are “period estimates” meaning they represent data for a specific period of time rather than for a specific date. The ACS collects surveys over the course of a year for 1-year estimates and over 5-years for 5-year estimates. It is often assumed that the methodology applied to develop 5-year estimates involves taking 1-year estimates, adding them up, and dividing by 5. However, data collected over the period are pooled together, weighted, and processed taking advantage of the larger sample size.
Unlike the Census, ACS estimates are “period estimates” meaning they represent data for a specific period rather than for a specific date. The ACS collects surveys over the course of a year for 1-year estimates and over 5-years for 5-year estimates. It is often assumed that the methodology applied to develop 5-year estimates involves taking 1-year estimates, adding them up, and dividing by 5. However, data collected over the period are pooled together, weighted, and processed taking advantage of the larger sample size.

The ACS releases updated 5-year estimates each year, or what is known as a “rolling 5-year period”. Data from the oldest year gets dropped and data for the newest year included, in other words 40% of the data changes. It is common for users interested in comparing how data have changed from one period to the next, however that is a statistically inaccurate approach. For example, users trying to understand the impact of the COVID-19 pandemic might try to compare data from overlapping 5-year periods such as between 2015-2019 and 2016-2020. Instead of comparing the difference between 2019 and 2020, users are measuring the difference between the nonoverlapping portions 2015 and 2020. Because of this, the Census Bureau strongly recommends against comparing estimates in overlapping 5-year periods since much of the data in each estimate are the same. Figure 1 below provides examples of ACS 5-Year period estimates that would be accurate to compare.
The ACS releases updated 5-year estimates each year, or what is known as a “rolling 5-year period”. Data from the oldest year gets dropped and data for the newest year included; in other words, 40 percent of the data changes. It is common for users interested in comparing how data have changed from one period to the next to compare 5-year estimates with overlapping years, however that is a statistically inaccurate approach as it can lead to misleading interpretations of trends. For example, users trying to understand the impact of the COVID-19 pandemic might try to compare data from overlapping 5-year periods such as between 2015-2019 and 2016-2020. Instead of comparing the difference between 2019 and 2020, users are measuring the difference between the nonoverlapping portions 2015 and 2020. Because of this, the Census Bureau strongly recommends against comparing estimates in overlapping 5-year periods since much of the data in each estimate are the same. Figure 1 below provides examples of ACS 5-Year period estimates that would be accurate to compare.


**Figure 1: Example Highlighting Nonoverlapping ACS 5-Year Estimates**

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