The city has experienced notable economic changes. The median income has shown an upward trend, increasing from $63,276 in 2013 to $72,048 in 2022, representing a 13.9% growth over the decade. This increase suggests improving economic conditions for the predominantly white population.

The population has shown fluctuations, starting at 1,335 in 2010, dropping to a low of 1,060 in 2012, and then gradually increasing to 1,388 in 2022. This population growth of about 4% since 2010, coupled with the rising median income, indicates a generally positive economic trajectory for the community.

Westphalia's demographic stability contrasts with national trends towards increasing diversity in many areas of the United States. The city's persistent Low Diversity classification and White Majority status suggest it may be less affected by broader demographic shifts seen in more urban or diverse regions.

The economic growth observed in Westphalia, as evidenced by the rising median income, aligns with general post-recession recovery trends seen across much of the country. However, the stability of its racial composition might indicate limited in-migration from diverse populations, which is often associated with economic growth in other areas.

Westphalia presents a picture of demographic stability with economic growth. While maintaining its Low Diversity and White Majority status, the community has experienced notable increases in median income and slight population growth. This suggests that local economic improvements have occurred without significantly altering the racial makeup of the community, potentially indicating strong local economic factors rather than demographic-driven changes.