21 US Cities Rich People Love To Call Home
If one thing is made clear by the latest Census report on the geographic concentration of high-income households, it’s this:
Wealthy people love living on the water’s edge.
The report, which is based on data from the American Community Survey (2007-2011), zeroed in on not only which metro areas are home to the biggest bank accounts, but where these well-heeled residents are the most concentrated. Coastal towns were by far the most popular, including long-time favorites like California and Florida.
With the final ranking in hand, we decided to dig a bit deeper. By breaking down each metro area in the report’s top wealthiest metropolitan areas by income tax rates, household income, and home value, we sought to explain not only where the wealthy live, but why.
These are the biggest metro areas with the highest concentration of wealthy residents.
Tax rates are noted as percentages of income and were compiled from Institute for Taxation and Economic Policy data. Average household income data was provided by the U.S. Census Bureau. Average home price data was compiled from Census data and Zillow.
6.9 percent of households are in the top 5 percent of earners.
Average household income: $61,496
State tax rate for wealthiest 1 percent: 4.4 percent (Pennsylvania); 7 percent (New Jersey)
State tax rate for next 4 percent: 6.8 percent (Pennsylvania); 8.8 percent (New Jersey)
Average cost of single-family home: $214,900
Well-known wealthy inhabitants: Mary Alice Torrance Mallone, Brian Roberts
Extra: Philly Mag recently published an exclusive feature called “Confessions of the One Percent.” It was billed as a chance for the city’s richest to anonymously spill their secrets about life at the top of the economic food chain.
7 percent of households are in the top 5 percent of earners.
Average household income: $71,263
Hawaii tax rate for wealthiest 1 percent: 8 percent
Hawaii tax rate for next 4 percent: 7.5 percent
Average single-family home cost: $607,600
Well-known wealthy residents: Pierre Omidyar
Extra: Although they aren’t residents of The Aloha State, many people on America’s rich list have oceanfront vacation homes in Hawaii, including Michael Dell and Charles Schwab.
7.1 percent of households are in the top 5 percent of earners.
Average household income: $67,023
Washington tax rate for wealthiest 1 percent: 2.8 percent
Washington tax rate for next 4 percent: 4.7 percent
Average single-family home cost: $295,700
Well-known wealthy inhabitants: Bill Gates, Jeff Bezos
Extra: Washington’s tax rates are known for being the friendliest to the wealthy. The state doesn’t have a tax on income and has low business taxes as well.