5 Cities Where (Almost) Half the Households Are Making $200K+ — Can You Afford Them?
Written by
Laura Beck
Edited by
Molly Sullivan
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Some American cities have become so concentrated with high earners that nearly half of all households pull in $200,000 or more per year.
A new SmartAsset study identified where wealthy households cluster and the numbers are staggering.
Santa Clara Leads the Pack
Santa Clara, California, has the highest portion of high-income households in the country at 46.9%. That means almost 1 out of every 2 households earns at least $200,000 annually.
Sunnyvale, California, comes in second at 46.3%, followed by Fremont, California, at 43.3%. San Mateo, California, sits at 42.6% and Bellevue, Washington, rounds out the top five at 41.8%.
All five cities share one other thing: They’re expensive to live in.
The Cost Reality
These cities exist in the heart of Silicon Valley or near major tech hubs. Housing costs reflect that concentration of wealth. When half your neighbors earn $200,000 or more, home prices and rents adjust upward to match.
The average home price in Santa Clara hovers around $1.7 million. Sunnyvale and Fremont aren’t far behind. San Mateo regularly sees homes sell for over $1.5 million. Bellevue sits slightly lower but still requires serious money to buy in, at about $1.4 million.
Renting doesn’t make it easier. A two-bedroom apartment in Santa Clara runs $3,500 to $4,500 per month. Oh, and a lot of these aren’t even luxury units with concierge service. They’re standard apartments in areas where tech workers compete for housing.
Who Can Actually Afford These Cities?
The math is brutal. Financial advisors typically recommend spending no more than 30% of your gross income on housing. At $200,000 per year, that’s $60,000 annually or $5,000 per month for housing.
A $5,000 monthly budget can cover rent in these cities but leaves little room for everything else. Property taxes, car payments, insurance, food, child care and savings all compete for what’s left. Buying a home requires a massive down payment even with that income level.
The reality is that $200,000 per year puts you at the entry level in these cities, not comfortably wealthy. You qualify as high-income by IRS standards but you’re barely middle class by local standards.
Who’s Left Out?
The study defines high-income as $200,000 or more, which means in Santa Clara, 53.1% of households earn less than that. Those people still live there but face constant financial pressure.
Teachers, nurses, retail workers and service employees keep these cities running but can’t afford to live in them comfortably. They may be living with roommates or in less desirable buildings or struggling with the rest of their financial picture, despite being necessary for these cities to thrive.
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