When it comes to the concentration of wealth and affluence, certain cities in the US stand out as havens for the richest individuals and families. From towering skyscrapers of financial powerhouses to the sprawling estates of entertainment elite, the richest cities in the US boast staggering real estate values, high GDP per capita, and a haven for billionaires and millionaires alike.
These cities are not just home to immense wealth, but also serve as economic engines driving finance, technology, and luxury industries across the nation. From New York City’s Wall Street to Silicon Valley’s tech giants, Los Angeles’ entertainment empires, and the emerging hubs in Denver, Dallas, and Boston – this article delves into the richest big cities in the US, exploring what makes them so attractive to the ultra-wealthy.
New York City: The Millionaire Capital
The Wealth Epicenter
New York City stands as the undisputed richest city in the United States and the world, with a staggering population of nearly 350,000 millionaires and 60 billionaires. The total wealth held by NYC residents exceeds a mind-boggling $3 trillion, surpassing that of most major G20 countries.
Real Estate Opulence
The city boasts the most expensive real estate globally, with an average square meter price of $28,400 for a prime apartment. Some of the world’s most exclusive residential streets, including Fifth Avenue and Billionaires’ Row in Manhattan, are located in NYC.
Financial Powerhouse
- New York City is home to the world’s two largest stock exchanges by market capitalization, the NYSE and Nasdaq.
- The city’s millionaire population has grown a remarkable 48% over the past decade, further solidifying its status as the millionaire capital.
Wealth Diversity
While NYC is the most affluent city, the boroughs may not necessarily be the best places to live, as only one neighborhood in the boroughs made the top 10 ‘Best Places to Live in the New York City Area’ according to a recent study. However, despite its high costs, budget-friendly activities and deals can still be found in the city.
Global Attraction
There has been an increase in Americans seeking second passports or alternative residences outside the U.S., especially post-pandemic, due to concerns about presidential elections, social issues, and potential future crises. Nevertheless, New York City remains the richest city in the U.S. and the world, with nearly 350,000 millionaires and 60 billionaires, outpacing other major cities in terms of wealth concentration.
Silicon Valley: Tech Wealth Hub
The Bay Area’s Booming Wealth
The San Francisco Bay Area ranks as the second richest city in America, with over 305,000 millionaires and 68 billionaires. Its millionaire population has grown a remarkable 82% over the past 10 years. While New York City has the most overall wealth, the Bay Area has the highest number of billionaire residents at 63.
Billionaire Epicenter
When it comes to super wealthy individuals, the Bay Area leads the pack with 63 billionaires, followed by New York City with 58, and Beijing with 43. This concentration of billionaires in Silicon Valley is a testament to the immense wealth generated by the tech industry.
Staggering Wealth Disparity
- The top 10% of households in Silicon Valley hold a staggering 66% of the investable assets in the region.
- Just 8 households in Silicon Valley hold more wealth than the bottom 50% (nearly 500,000 households).
- The top 1% of households in Silicon Valley hold 48 times more wealth than the bottom 50%, compared to 23 times nationally and globally.
Millionaire Households and Extreme Wealth
- Silicon Valley has an estimated 163,000 millionaire households (>$1 million in investable assets), which is less than 1% of the population but holds 36% of the region’s wealth.
- There are an estimated 8,300 households in Silicon Valley with more than $10 million in investable assets.
- The top 0.1% of households in Silicon Valley own $50 billion in liquid assets or cash, which is 6 times more than the total wealth of the bottom 50% of the region (around 500,000 households).
Growing Inequality and Homelessness
- About 23% of Silicon Valley residents lived below the poverty threshold in 2021, a 3 percentage point increase from 2019.
- 2% of Silicon Valley households, or about 22,000 households, did not hold bank accounts.
- Income inequality has been growing faster in Silicon Valley compared to the state and nation, with a 5% increase in 2021 while it decreased 1% statewide and 3% nationally.
- San Jose ranks 1st in the U.S. for homelessness among young adults ages 18-24, with 85 per 100,000 people.
- 28% of Silicon Valley households don’t earn enough to meet their basic needs without public or private assistance.
Wealth Concentration and Philanthropy
- The total wealth of Silicon Valley households, including real estate, is $1.5 trillion.
- The top tech companies (Google, Adobe, Intel, Zoom) donated $72 million to local nonprofits in 2021, which is only about 0.02% of their total revenue.
Income and Affordability
| Metric | Silicon Valley | United States |
|---|---|---|
| Median Household Income (2022, inflation-adjusted) | $150,514 | $64,517 |
| Percent change in income (2011-2022) | 27% | 15% |
| Percent who can afford median-priced home | 27% | – |
| Percent for Black and Latino households | 14% | – |
Homelessness and Food Insecurity
- San Jose leads the nation in young adult homelessness (ages 18-24).
- The nonprofit food bank Second Harvest of Silicon Valley serves 460,000 clients per month, a 10,000 increase from 2022 and 80% increase since 2019.
Los Angeles: Hollywood’s Affluence
The Entertainment Capital
While Los Angeles is often associated with the glamour and wealth of Hollywood, the reality is more nuanced. Hollywood itself is a neighborhood within Los Angeles, not a separate city or uniformly affluent area. The median household incomes across the five zip codes covering Hollywood range from $39,984 to $92,952, indicating a mix of income levels.
Pockets of Extreme Wealth
The true bastions of wealth in Los Angeles are found in neighborhoods like Bel Air Estates, Beverly Glen (zip code 90077), which boasts a median household income of $210,833 – the highest in the city. Many successful entertainment industry professionals reside in upscale areas outside of Hollywood, such as Brentwood, Encino, Pacific Palisades, and the iconic Beverly Hills.
- Los Angeles ranks third among U.S. cities with the highest number of millionaires (212,100), centi-millionaires (496), and billionaires (43).
- According to the Charles Schwab Modern Wealth Survey, a net worth of $3.5 million is considered “wealthy” in the Los Angeles and San Diego metro areas – one of the highest thresholds in the country.
Hollywood’s Contrasts
Despite its global fame and cultural significance, Hollywood itself presents a stark contrast between the glitz and glamour portrayed on screen and the realities on the ground:
- The neighborhood is described as having a mix of tourist attractions, drug dealers, homelessness, and crime, especially at night.
- The perception of Hollywood as a wealthy area may be influenced more by its association with the entertainment industry than by the actual income levels of its residents.
Hollywood’s Origins
Interestingly, Hollywood was not initially chosen as the location for the film industry due to its wealth or affluence. Instead, factors like favorable weather, available land, and distance from patent disputes on the East Coast were the driving forces behind this decision.
Wealth Distribution in Los Angeles
While Los Angeles boasts significant wealth concentrated in certain neighborhoods, it is essential to recognize the broader economic disparities within the city:
| Metric | Value |
|---|---|
| Wealthiest Zip Code | 90077 (Bel Air Estates, Beverly Glen) – Median Income: $210,833 |
| Poorest Zip Code | 90021 (Downtown Fashion District, Downtown Southeast) – Median Income: $15,149 |
The stark contrast between the wealthiest and poorest areas of Los Angeles highlights the city’s income inequality and the diverse economic realities of its residents.
Other Notable Cities
Emerging Wealth Hubs
Austin and Miami: Rising Stars
The fastest-growing U.S. city for the ultra-wealthy among the top 10 is Austin, Texas, which has more than doubled its millionaire population over the past decade to nearly 33,000. Miami is also a fast-growing city for millionaires, with an 87% growth in millionaires over the past decade, but it still has only about one-tenth the total number of millionaires as New York City.
- Austin has seen the highest millionaire growth rate from 2013 to 2023 at 110%, followed by Houston at 70% and Dallas at 75%.
- The millionaire growth rate from 2013 to 2023 is highest in Austin (110%), followed by Houston (70%), Dallas (75%), Seattle (72%), and Miami (78%).
Texas Trio: Austin, Houston, and Dallas
- Austin, Houston, and Dallas have emerged as major wealth hubs, with Austin leading the pack in terms of millionaire population growth.
- Houston and Dallas have also experienced significant growth in their millionaire populations, with increases of 70% and 75%, respectively, from 2013 to 2023.
Other Cities with High Millionaire Populations
Despite the rise of wealth hubs in Texas and Florida, the Bay Area and New York City are expected to remain America’s wealthiest cities for many more decades to come. Other cities with high numbers of millionaires include:
- Chicago (120,500 millionaires)
- Houston (90,900 millionaires)
- Dallas (68,600 millionaires)
- Seattle (54,200 millionaires)
- Boston (42,900 millionaires)
- Miami (35,300 millionaires)
- Austin (32,700 millionaires)
Top Richest Cities by GDP per Capita
The 25 richest U.S. cities by GDP per capita are led by Bridgeport, Connecticut, with a GDP per capita of $78,430.
Richest Small Cities and Towns
While major metropolitan areas like New York City and the Bay Area dominate the wealth rankings, some smaller cities and towns also boast significant affluence:
| City | State | Median Household Income | Median Home Value |
|---|---|---|---|
| Los Altos | California | $250,000+ | $3.9 million+ |
| University Park | Texas | $247,045 | $2,043,050 |
| McLean | Virginia | $242,610 | $1,246,367 |
These smaller cities and towns often have a high concentration of wealth due to their proximity to major economic centers or the presence of specific industries.
Conclusion
The concentration of wealth in the United States is a complex and multifaceted phenomenon. While cities like New York, the San Francisco Bay Area, and Los Angeles stand out as the richest, with staggering numbers of millionaires and billionaires, it is important to recognize the disparities that exist within these cities and across the nation. From Silicon Valley’s growing inequality to the contrasts between Hollywood’s glitz and its surrounding neighborhoods, wealth distribution remains a pressing issue.
Nonetheless, the rise of emerging wealth hubs like Austin, Miami, and various cities in Texas indicates a shifting landscape. As these cities attract more affluent residents and businesses, it will be fascinating to observe how they navigate the challenges of accommodating growth while addressing economic disparities. Ultimately, the richest cities in the US serve as a microcosm of the country’s broader economic landscape, reflecting both immense prosperity and lingering inequalities that require thoughtful solutions.
