Definition
A Metropolitan Division is a specific geographical unit within a larger Metropolitan Statistical Area (MSA). It is comprised of a county or a group of counties that function as a distinct economic area within the larger urban region. The concept of Metropolitan Divisions helps to provide a more granular understanding of economic and demographic trends within highly populated and economically integrated urbanized areas.
Examples
-
Los Angeles–Long Beach–Santa Ana MSA:
- Metropolitan Divisions:
- Los Angeles–Long Beach–Glendale
- Santa Ana–Anaheim–Irvine
- Metropolitan Divisions:
-
Chicago–Naperville–Elgin MSA:
- Metropolitan Divisions:
- Chicago–Naperville–Arlington Heights
- Elgin
- Kendall County
- Metropolitan Divisions:
-
Washington–Arlington–Alexandria MSA:
- Metropolitan Divisions:
- Washington–Arlington–Alexandria (DC-VA-MD-WV)
- Bethesda-Gaithersburg–Frederick (MD)
- Metropolitan Divisions:
Frequently Asked Questions (FAQs)
What constitutes a Metropolitan Division?
- A Metropolitan Division is typically defined by the Office of Management and Budget (OMB) based on economic activities, commuting patterns, and interconnectedness within a larger Metropolitan Statistical Area.
Why are Metropolitan Divisions important?
- They help policymakers, researchers, and businesses understand the economic dynamics at a more detailed level than the broader Metropolitan Statistical Area. This can improve regional planning and economic development strategies.
How often are Metropolitan Divisions updated?
- The OMB reviews and updates the definitions and territories of Metropolitan Divisions periodically, often based on new census data or significant changes in commuting patterns or economic activities.
Can a small city have a Metropolitan Division?
- No, Metropolitan Divisions are part of large MSAs. Smaller cities that do not fall within a large urbanized area are typically categorized differently, often as Micropolitan Statistical Areas (Micropolitan Divisions within larger regions are not recognized).
How does a Metropolitan Division affect real estate?
- Real estate trends can vary significantly within large metros, and analyzing data at the division level provides more relevant insights for investors, developers, and policymakers.
Related Terms
Metropolitan Statistical Area (MSA):
- A region with a high population density at its core and close economic ties throughout the area.
Micropolitan Statistical Area:
- Similar to an MSA but consists of one or more counties with a smaller urban core population of 10,000 to 50,000.
Rural Area:
- Regions outside urbanized areas and clusters, often with lower population density and more dispersed economic activities.
Online Resources
- U.S. Census Bureau - Provides data and definitions related to Metropolitan and Micropolitan Statistical Areas.
- Office of Management and Budget (OMB) - Offers policy guidelines and updates on the classification of geographical units.
References
- U.S. Census Bureau. “About Metropolitan and Micropolitan Statistical Areas.” Census.gov.
- Office of Management and Budget. “Standards for Defining Metropolitan and Micropolitan Statistical Areas.” Whitehouse.gov.
Suggested Books for Further Studies
- “Regional and Urban Economics and Economic Development: Theory and Methods” by Mary E. Edwards
- “Urban Economics” by Arthur O’Sullivan
- “Metropolitan Governance: An International Perspective” by Richard C. Feiock and Robert Stein
- “Principles of Urban Economics” by David M. Brasington
Real Estate Basics: Metropolitan Division Fundamentals Quiz
### What defines a Metropolitan Division within an MSA?
- [ ] A single neighborhood
- [x] A county or group of counties that serve as a distinct economic area
- [ ] Only one major city
- [ ] A rural community
> **Explanation:** A Metropolitan Division is a county or group of counties within a large MSA that functions as a distinct economic unit.
### Are Metropolitan Divisions part of smaller cities or large urbanized regions?
- [ ] Smaller cities
- [x] Large urbanized regions
- [ ] Rural areas
- [ ] Suburban areas
> **Explanation:** Metropolitan Divisions are components of larger urbanized regions, not smaller cities or rural areas.
### What agency is responsible for defining Metropolitan Divisions?
- [ ] The Department of Housing and Urban Development (HUD)
- [ ] The Internal Revenue Service (IRS)
- [x] The Office of Management and Budget (OMB)
- [ ] The Department of Education (DOE)
> **Explanation:** The OMB is responsible for designating and defining Metropolitan Divisions.
### Which of the following is a characteristic of a Metropolitan Division?
- [ ] It is an independent city
- [ ] It generally pertains to agriculture
- [x] It provides detailed economic insight within a larger MSA
- [ ] It only exists in rural areas
> **Explanation:** Metropolitan Divisions provide more detailed economic insights within larger Metropolitan Statistical Areas (MSAs).
### How can Metropolitan Divisions impact real estate analysis?
- [x] They give more localized and relevant market data
- [ ] They have no impact on real estate
- [ ] They only affect commercial properties
- [ ] They determine national housing prices
> **Explanation:** Analyzing real estate at the division level within an MSA can give more localized and relevant market data, crucial for real estate investments.
### What is an example of a Metropolitan Division?
- [x] Santa Ana-Anheim-Irvine
- [ ] State of California
- [ ] City of San Diego
- [ ] Hollywood
> **Explanation:** An example of a Metropolitan Division within a larger MSA is Santa Ana-Anheim-Irvine.
### Can the definitions of Metropolitan Divisions change?
- [x] Yes, based on new census data or economic changes
- [ ] No, they are fixed once defined
- [ ] Only by state governments
- [ ] By international organizations
> **Explanation:** The definitions can change based on new census data, commuting patterns, or significant economic shifts.
### Do Metropolitan Divisions exist in every state?
- [ ] Yes, every state has at least one
- [ ] No, only major cities are considered
- [ ] It varies randomly
- [x] They are found in states with large, complex MSAs
> **Explanation:** Metropolitan Divisions are found in large urbanized regions that have complex economic interdependencies, not necessarily in every state.
### What level of detail do Metropolitan Divisions provide?
- [x] More detailed than the overall MSA
- [ ] Less detailed than the MSA
- [ ] Same level of detail as the entire state
- [ ] They provide no useful data
> **Explanation:** Metropolitan Divisions provide a more detailed level of economic and demographic data compared to the broader MSA.
### How often are updates made to Metropolitan Division designations?
- [ ] Yearly
- [ ] Monthly
- [ ] Every decade
- [x] Periodically by the OMB based on census and economic data
> **Explanation:** Updates are made periodically by the OMB, often in correlation with census updates and changes in economic data.
