California cities are among the rich growing richer

With inflation causing high costs across the US, it may seem difficult to envision individuals becoming wealthier. However, a recent study confirms that the saying about the wealthy becoming wealthier remains accurate in modern times. An anti-poverty advocacy group recently forecasted that the world will have its first trillionaire within the next decade.

In 2020, billionaires are projected to increase their wealth by 34%, growing three times faster than the inflation rate, according to the report. You don’t need a billion – or even a million – dollars to be among the wealthiest Americans.

In 2022, the Pew Research Center conducted an analysis indicating that a family of three earning $156,000 could be classified as upper class, though this classification may differ depending on your location. Becoming part of the upper class in the US might have a higher threshold: According to a report by GOBanking Rates in December, a household income of $250,000 or higher may be necessary to be classified as upper class.

Study finds that $100K goes the farthest in US cities. The personal finance site analyzed where the wealthiest Americans got richer using a slightly lower median household income of $200,000.

The analysis, which was published on Wednesday, looked at the top 100 cities in the country. It ranked them according to the changes in median household income per capita from 2019 to 2022, as well as the fluctuations in the number of households earning $200,000 or above.

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It’s no surprise that California is a major presence on the GOBankingRate list. Los Altos is identified as the top city where high-income households are increasing, with the median household income projected to surpass $400,000 by 2022 based on US Census Bureau data. None of the other cities on the list have a household income exceeding $400,000.

Los Altos is among the top 10 cities in California. A total of 37 cities in California were included on the list. Why am I required to pay taxes this year? A tax expert will outline the most frequent causes. GOBankingRate discovered that the wealthier of the two coasts is becoming even wealthier. Only Texas has a city in the top 25 on the list, with cities from Alabama and Florida also making the list shared by Nexstar.

Out of the 100 cities studied, 78 are projected to have an average household income of $200,000 or more in 2022. Among these, nine will exceed $300,000, while 13 will be below that mark. Parkland, Florida ranks at the bottom of GOBankingRate’s list. The average household income exceeds $200,000, with nearly half of its residents earning higher salaries. The city experienced the second smallest difference in average household income from 2019 to 2022.

Here is a table showing the complete GOBankingRate list for each city in 2022, along with the median household income, the three-year percentage change in average household income, and the annual percentage change in the population with incomes above $200,000.

During a three-year period, Bainbridge Island and Issaquah, two cities near Seattle, experienced the highest percentage changes in household income, with 48% and 43%, respectively. From 2019 to 2022, Bainbridge Island experienced the highest percentage increase in the population earning over $200,000, at almost 57%.

The GOBankingRates analysis includes a total of 20 states. Earning $200,000 or more may not suffice in certain regions. According to a recent study from SmartAsset, a $100,000 salary is reduced to approximately $70,700 after factoring in taxes and living expenses in major cities.

An analysis conducted by a group of Congressional Republicans illustrates how inflation is affecting households in each state. (The joint committee is led by a Democrat, but the report and data come from Republican members.) The report uses January 2021 as a benchmark since it marks the last time inflation will adhere to historical norms.

According to the report, the majority of American households would need to spend over $10,000 additional to purchase the same goods and maintain the same quality of life as less than three years ago.

(Source)