Zip Codes: Pitfalls and Alternatives in Data Analysis

2025-02-07
Zip Codes: Pitfalls and Alternatives in Data Analysis

This article exposes the flaws of widely used zip codes in data analysis. Zip codes aren't based on actual geographical boundaries but rather on mail delivery routes, leading to biases in reflecting demographic trends and human behavior, potentially resulting in erroneous conclusions. Using the US as an example, the article analyzes discrepancies between zip codes and census block groups in income data, highlighting how zip code analysis can mask critical issues, such as the Flint water crisis. The article suggests using more precise address data, census units, or spatial indexes like H3 and quadkey as alternatives to zip codes for more accurate and reliable data analysis.