Indeed, the rich are getting richer. Across 25 U.S. cities, the wealth of America's wealthy has increased significantly. The Wall Street Journal recently reported that the U.S. economy is currently very strong due to subdued inflation, increased consumer spending, and low unemployment, all of which may be helping line the pockets of the wealthy. It was reported that there is a sex.
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To determine the cities where wealthy residents are growing their wealth, GOBankingRates extracted the 100 cities with the highest median household income and at least 7,500 households from the 2022 American Community Survey. Each city's 2019 average household income, 2022 average household income, and his three-year percentage change in average household income were scored and combined by GOBankingRates. The final numbers also took into account the percentage of the population with household incomes of $200,000 or more in 2019 and 2022, as well as the three-year percentage change in the population with household incomes of $200,000 or more.
Let's see what we learned here.
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Main findings
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The wealthy are thriving in California. Los Altos, California, topped the list as the No. 1 city with an increasingly wealthy population, with a median household income of $400,817 in 2022. Seven cities in the top 10 are in California. There were a total of 11 California cities in the complete list of 25 cities ranked by GOBankingRates. If you crunch the numbers, that means 44% of the places where the wealthy are getting richer are in California alone.
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More than half of that growing wealth is on the West Coast. Of the 25 complete list, 15 cities are located in two West Coast states: California and Washington.
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The East Coast holds a steady position after the West Coast in wealth growth. Despite being largely shut out of the top 10, nine cities across the East Coast states ranked within the top 25 list.
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Massachusetts is the most popular East Coast state to grow your wealth. The five cities ranked include Wellesley, Winchester, Needham, Lexington and Marblehead on the full list of 25 cities.
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Texas is the only southern state where wealth is increasing. Southlake, Texas, was the only southern state in the top 10, coming in at No. 5. In terms of 25 city rankings, it is the only southern state to make it to the list.
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An increase in income of $200,000 or more. Among the top 10 cities in the ranking, cities such as Los Altos, Wellesley, McLean, Southlake, Saratoga, Cupertino, Palo Alto, and Lafayette have more than half of the population earning more than $200,000.
A city where the wealthy get even richer
Take a look at the top 10 cities where the rich are getting richer.
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1. Los Altos, California
Los Altos ranks #1 as a city where the wealthy are getting richer.
Median household income was $326,456 in 2019 and rapidly increased to $400,817 in 2022. The percentage change over the three years shows that average household income increased by 22.78%.
Incomes for the majority of the city's population rose steadily by more than $200,000. In 2019, 57% of the population earned more than $200,000 per year. By 2020, this percentage had increased to 64%. This means that more than half of Los Altos' population earns more than $200,000 per year.
2. Wellesley, Massachusetts
In second place was Wellesley, Massachusetts, the first of two East Coast cities to make the top 10.
The three-year percentage change in Wellesley's median household income was 27%, from $287,793 in 2019 to $367,801 in 2022. Also, Wellesley residents enjoyed a significant increase in income over her three years. In 2019, 49% earned more than $200,000 annually. This number jumped to 64% in 2022.
3. McLean, Virginia
In third place is McLean, Virginia, the second East Coast city on this list. Similar to Los Altos, McLean experienced a 22% change in median household income over a three-year period.
However, unlike Los Altos, McLean's population with incomes above $200,000 is growing much faster. In MacLean, in 2019, 52% of the population earned more than $200,000, and in 2022, it was 61%, an 18% increase.
4. Los Gatos, California
Los Gatos, in fourth place, had the largest three-year percentage change in median household income of any city in the top 10.
In 2019, the median household income was $217,966 and jumped to $305,653 in 2022, an increase of 40%.
The number of people with an annual income of $200,000 or more has steadily increased by 22% over three years, rising from 40% in 2019 to 49% in 2022.
5. Southlake, Texas
In fifth place is Southlake, Texas, the only southern state to rank among the top 10 richest cities.
Overall percentages are very good in Southlake. Median household income increased by 20% over three years, from $299,637 in 2019 to $360,078 in 2022.
However, the growth in the number of people earning more than $200,000 has been slower than in the other nine cities in the top 10, with incomes increasing by only 9% over three years.
6. Saratoga, California
Saratoga, California occupies the No. 6 spot in GOBankingRates' rankings.
Many of those percentages are in line with other notable California cities in the top 10. Average household income increased by 27% in his three years. The population of Saratoga with an annual income of $200,000 or more continues to grow, rapidly increasing from 47% in 2019 to 58% in 2022.
7. Menlo Park, California
Within three years, the average household income of Menlo Park, California, residents increased by 31%, ranking the city 7th.
Incomes of $200,000 or more have increased to the point that as of 2022, nearly 50% of Menlo Park's population will be earning this amount each year.
8. Cupertino, California
In eighth place was Cupertino, California, which had the second-largest change in median household income after Los Gatos.
In 2019, the average household income for Cupertino residents was $206,009. This amount increased to $283,063 in 2022, an increase of 37%.
The number of people earning more than $200,000 per year is also on the rise, with 54% expected to earn the same amount by 2022.
9. Palo Alto, California
In ninth place is Palo Alto, California, where average household income has increased by nearly 30% over three years. This amount increased from $232,529 in 2019 to $301,226 in 2022.
More than half (52%) of Palo Alto residents will have incomes of $200,000 or more in 2022.
10. Lafayette, California
Rounding out the top 10 is Lafayette, California. The average household income in Lafayette has increased significantly, from $250,550 in 2019 to $312,233 in 2022, an increase of about 25%.
Like many of the cities in the top 10, incomes above $200,000 continue to be the norm in Lafayette. This percentage increased from 45% in 2019 to 53% in 2022, an increase of 16%.
Methodology: For this article, GOBankingRates first extracted the 100 cities with the highest median household income and 7,500 or more total households from the 2022 American Community Survey conducted by the U.S. Census Bureau. Once these cities were selected, GOBankingRates asked each city to: (1) Median household income in 2019. (2) Median household income in 2022. (3) his three-year percent change in average household income; (4) Percentage of population with 2019 household income of $200,000 or more. (5) Percentage of population with household income of $200,000 or more in 2022. (6) Three-year percent change in population with household income of $200,000 or more. Factors (2), (3), and (5) were then scored and combined such that the lowest score was the best. In the final calculation, factor (2) was weighted by a factor of 4 and factor (3) was weighted by a factor of 2. All data is collected and current as of February 7, 2024.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: America's Wealth: 25 Cities Where the Rich Are Getting Richer
