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This is how much money you need to be considered 'wealthy' in America's biggest cities

Jul 5, 2022, 17:39 IST
Business Insider
San Francisco is one of America's priciest housing markets.RICOWde/Getty Images
  • It takes a net worth of $5.1 million to be considered 'wealthy' in San Francisco.
  • That's compared to just $2.3 million in Denver, according to a Charles Schwab survey.
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Americans need a net worth of $5.1 million to be considered 'wealthy' in San Francisco, according to an annual survey conducted by financial firm Charles Schwab that polled 750 of the city's adult residents.

That's the priciest threshold of any American city and nearly $3 million more than the national average of $2.2 million.

The runner-up was Southern California, in which residents said takes $3.9 million to be 'rich'. New York City requires a $3.4 million net worth, Washington, D.C. requires $3.3 million, and Seattle requires $3.2 million.

By comparison, some cities in the Midwest and South takes significantly less to be considered wealthy by net worth. In Dallas and Houston, Texas, survey respondents said an average of $2.6 million was needed. In Chicago and Denver, that figure dropped to $2.5 million and $2.3 million, respectively.

Some tech companies have been investing more resources in offices outside of Silicon Valley and courting employees who want to live in cities with lower costs of living.

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Intel's CEO Pat Gelsinger laid out his vision of Columbus, Ohio as a "Silicon Heartland" — the company is spending $20 billion on semiconductor production in the state. Software company Oracle recently moved its headquarters to Austin, Texas, the city in which Tesla is also headquartered.

Last year, San Francisco residents polled in the survey said that a net worth of $3.8 million would be enough to be considered 'wealthy' in the Bay Area, and $1.8 million would offer "financial happiness."

Costs of living have soared over the past year as inflation has hit 40-year highs and supply chain crises have compelled firms to raise prices. Rent costs have also skyrocketed: several cities have witnessed double-digit growth since the economic rebound in 2020.

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