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(NEXSTAR) —Have you ever wondered how your income stacks up against your neighbors? New data analysis by Go Banking Rates shows how much you need to make to be considered rich in 50 U.S. cities. The site used U.S. Census Bureau income data to determine the salary a household needs to earn to be in the city’s top 20% of earners—what they define as “rich.”
In New York City, you’ll need to make at least $144,541 to be considered a “rich” person in the top 20% of the city’s 8 million-plus residents. The ultra-rich, or the top 5% of earners in NYC, make way more: $585,902 on average, according to the analysis.
The next-nearest cities they analyzed were Boston and Philadelphia. Boston outranks New York City, with its top 20% pulling in at least $159,024 each year, and the top 5% averaging $505,880. The City of Brotherly Love, however, is much more affordable. There, the ultra-rich claim$334,665 per year on average, and its top 20% just breaks the six-figure threshold at $101,220.
All but seven of the cities Go Banking Rates studied require six-figure salaries to qualify as “rich.” Of the 50 cities included, Detroit was the one with the lowest threshold to enter the top 20%. Earning $66,139 or more would land you in the top fifth of the city’s earners. Yet in some of the priciest spots across the country, you’d need to bring home much more. In San Francisco, for example, you’ll need to earn about $239,000 to be in that top tier.
Nationwide, the Census found the median household income was $67,521 in 2020. That’s a nearly 3% decline from the year before, the first statistically significant drop and perhaps not a big surprise given the pandemic and ensuing economic fallout. The poverty rate also climbed in 2020 to 11.4%.
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The article discusses income disparities across 50 U.S. cities and defines the threshold for being considered "rich" based on household income. The analysis utilizes U.S. Census Bureau income data to determine the salary required to be in the top 20% of earners in each city.
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Definition of "Rich": The article defines "rich" as being in the top 20% of earners in a given city. This classification is based on household income, and the thresholds vary significantly among the cities analyzed.
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Income Disparities: The data reveals substantial income disparities among different cities. For example:
- In New York City, to be in the top 20%, one needs to earn at least $144,541.
- Boston's top 20% earners require a minimum annual income of $159,024.
- Detroit has the lowest threshold among the studied cities, with $66,139 placing one in the top fifth of earners.
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Ultra-Rich Category: The analysis introduces the concept of the "ultra-rich," representing the top 5% of earners in a city. In New York City, the ultra-rich have an average income of $585,902.
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Affordability Variations: Affordability varies across cities. While Philadelphia is more affordable, with the top 20% earning just above $100,000, San Francisco stands out as one of the priciest cities, requiring an income of about $239,000 to be in the top tier.
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National Median Household Income: The article mentions the national median household income in 2020, which is $67,521. This figure experienced a nearly 3% decline from the previous year, likely influenced by the pandemic and its economic repercussions.
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Poverty Rate: The poverty rate in 2020 increased to 11.4%, reflecting the challenging economic conditions during the pandemic.
This analysis provides a comprehensive overview of income dynamics in various U.S. cities, shedding light on the disparities and economic challenges faced by different communities. If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
