The demographic shifts in Palmer Square correlate with economic changes. The median income has risen from $54,601 in 2013 to $83,810 in 2022, representing a 53.5% increase over nine years. This income growth outpaces inflation and suggests an economic transformation of the neighborhood. The population has grown from 7,076 in 2013 to 7,725 in 2022, a 9.2% increase. This population growth, combined with the rising median income, indicates that Palmer Square has become increasingly attractive to higher-income residents.

The changes observed in Palmer Square reflect trends seen in many urban neighborhoods across the United States, particularly in large cities. Gentrification processes often lead to demographic shifts similar to those seen here, with increasing diversity in some aspects but also potential displacement of long-standing minority communities. The rapid income growth in Palmer Square outpaces the national trend. The U.S. median household income grew from $51,939 in 2013 to $70,784 in 2021, an increase of about 36% over eight years. Palmer Square's 53.5% growth over a similar period indicates a more pronounced economic transformation than the national average.

The neighborhood's evolution from a "Majority-Minority" community to one with a slight "White Majority" and "Moderate Diversity" mirrors patterns seen in other gentrifying urban areas, where economic development often correlates with demographic changes. This transition raises questions about community preservation, affordable housing, and inclusive development strategies that could maintain diversity while fostering economic growth.