Wealth in America: 25 Cities Where the Rich Are Getting Richer
The rich are, indeed, getting richer. Across 25 U.S. cities, wealth is substantially growing for rich Americans. The Wall Street Journal recently reported that the U.S. economy is currently quite robust with tempered inflation, increased consumer spending and low unemployment percentages, all things that might be helping to fill the pockets of the rich.
Read Next: 7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account
Learn More: 6 Genius Things All Wealthy People Do With Their Money
To determine the cities where rich residents are growing their wealth, GOBankingRates took the 100 cities with the highest mean household income and a minimum of 7,500 households from the 2022 American Community Survey. Each city’s 2019 mean household income, 2022 mean household income and a three-year percent change in mean household income were scored and combined by GOBankingRates. Percentages of the population with a household income of $200,000+ for 2019 and 2022 and a three-year percentage change in population with a household income of $200,000+ were also factored in for the final figures.
Here’s a look at what was learned.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Key Findings
The rich are thriving in California. Los Altos, California, topped the list as the No. 1 city where the rich are getting richer with a 2022 mean household income of $400,817. Seven cities mentioned in the top 10 are located in California. Within the full list of 25 cities ranked by GOBankingRates, there were a total of 11 California cities. When we crunch the numbers, this means 44% of where the rich are getting richer is just in the state of California.
More than half of the growing wealth is found on the West Coast. Fifteen cities in the full list of 25 are located in two West Coast states: California and Washington.
The East Coast holds steady behind the West Coast for wealth growth. Despite being largely shut out from the top 10, nine cities throughout East Coast states ranked within the top 25 list.
Massachusetts is the most popular East Coast state for growing wealth. Its five ranked cities include Wellesley, Winchester, Needham, Lexington and Marblehead in the full list of 25 cities.
Texas is the only Southern state to rank for growing wealth. Southlake, Texas, was the only Southern state to rank in the top 10 at fifth place. In the context of the 25 cities ranking, it is the only Southern state on the list.
Rise of the $200,000+ income. Of the top 10 cities ranked, more than half of the populations in cities including Los Altos, Wellesley, McLean, Southlake, Saratoga, Cupertino, Palo Alto and Lafayette have an income of $200,000 or more.
Cities Where the Rich Are Getting Richer
Let’s look at the top 10 cities where the rich are getting richer.
Discover More: How Much Money Do Americans Have in Their Bank Accounts in 2024?
1. Los Altos, California
Los Altos ranks as the No. 1 city where the rich are getting richer.
The 2019 mean household income was $326,456, which rose quickly to $400,817 in 2022. The three-year percentage change indicates the mean household income rose by 22.78%.
Incomes of $200,00+ steadily increased for the majority of the city’s population. In 2019, 57% of the population made $200,000 or more a year. By 2020, this amount had increased to 64%. This means more than half of the Los Altos population earns an income of $200,000 or more annually.
2. Wellesley, Massachusetts
In second place is Wellesley, Massachusetts, the first of only two East Coast cities to rank in the top 10.
Over a three-year period, the percentage change of Wellesley mean household income increased by 27% going from $287,793 in 2019 to a hearty $367,801 in 2022. The Wellesley population also enjoyed a bump in increased income over the period of three years. In 2019, 49% made $200,000 or more annually. This figure jumped to 64% in 2022.
3. McLean, Virginia
The third place ranking goes to McLean, Virginia, the second East Coast city mentioned on this list. Similar to Los Altos, McLean experienced a 22% change in mean household income over the period of three years.
Unlike Los Altos, however, the McLean population has seen a much more swift uptick in $200,000+ incomes. McLean went from 52% of its population earning $200,000 or more in 2019 to 61% in 2022: an 18% increase.
4. Los Gatos, California
Los Gatos, in fourth place, experienced the biggest three-year percentage change in mean household income out of any city ranked in the top 10.
The 2019 mean household income of $217,966 jumped to $305,653 in 2022: a 40% increase.
The population earning $200,000 or more a year also received a healthy uptick of 22% over a three-year period, going from 40% in 2019 to 49% in 2022.
5. Southlake, Texas
In fifth place is Southlake, Texas, the only Southern state to rank in the top 10 cities where the rich getting richer.
Percentages across the board are quite favorable in Southlake. The mean household income increased by 20% over the period of three years, from $299,637 in 2019 to $360,078 in 2022.
However, the increase of the population earning over $200,000 is slower in comparison to the other nine cities in the top 10. Over three years, incomes have only increased by 9%.
6. Saratoga, California
Saratoga, California, occupies the sixth place in GOBankingRates’ ranking.
Many of its percentages align with other noteworthy California cities in the top 10. The mean household income has increased by 27% over three years. The Saratoga population of $200,000 or more earners also continues to grow, pacing swiftly from 47% in 2019 to 58% in 2022.
7. Menlo Park, California
Within three years, the mean household income for Menlo Park, California, residents has increased by 31%, allowing the city to rank at No. 7.
Incomes of $200,000 or more have increased to the point where nearly 50% of the Menlo Park population earns this amount annually as of 2022.
8. Cupertino, California
Ranked in eighth place is Cupertino, California, which saw the second-highest change in median household income after Los Gatos.
In 2019, the mean household income for Cupertino residents was $206,009. This amount increased to $283,063 in 2022: a 37% jump.
The population earning $200,000 or more is also on the upswing with 54% earning this amount annually in 2022.
9. Palo Alto, California
In ninth place is Palo Alto, California, where the mean household income increased by nearly 30% within three years. This amount went from $232,529 in 2019 to $301,226 in 2022.
More than half of Palo Alto residents, at 52%, have incomes of $200,000 or more as of 2022.
10. Lafayette, California
Rounding out the top 10 is Lafayette, California. Lafayette experienced a sizeable leap forward in mean household income, going from $250,550 in 2019 to $312,233 in 2022: a nearly 25% increase.
Like many cities mentioned in the top 10, incomes of $200,000 or more only continue to be the norm in Lafayette. This percentage went from 45% in 2019 to 53% in 2022, a 16% increase.
Methodology: For this piece, GOBankingRates first took the 100 cities with the highest mean household income and with a minimum of 7,500 total households sourced from the 2022 American Community Survey as conducted by the US Census Bureau. With these cities selected, GOBankingRates then found each cities: (1) 2019 mean household income; (2) 2022 mean household income; (3) three-year percent change in mean household income; (4) 2019 percent of population with a household income of $200,000+; (5) 2022 percent of population with a household income of $200,000+; and (6) three-year percent change in population with a household income of $200,000+. Factors (2), (3) and (5) were then scored and combined with the lowest score being best. In final calculations factor (2) weighed 4x and factor (3) was weighed 2x. All data was collected and is up to date as of February 7, 2024.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Wealth in America: 25 Cities Where the Rich Are Getting Richer
