10 Cities Where the Rich and Poor Divide Is the Biggest — and What To Do If You Live in One

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Income inequality remains a pressing concern in numerous U.S. cities, with the chasm between the affluent and those facing financial hardships continuing to expand in some places.

A recent study by SmartAsset highlighted the cities where this disparity is most pronounced. It used an income spread between the highest-earning and lowest-earning quintiles to determine how much the highest-earning households make for every dollar the lowest-income households make.

If you reside in one of these areas, understanding the dynamics of income inequality and exploring strategies to bolster financial stability can be crucial.​

New Orleans

• Ratio of earnings threshold for top 20% vs. bottom 20%: $7.91
• Percentage change in income spread (2023 to 2024): 0.45%
• 2024 median household income: $51,913

Boston

• Ratio of earnings threshold for top 20% vs. bottom 20%: $7.70
• Percentage change in income spread (2023 to 2024): -1.31%
• 2024 median household income: $84,548

Newark, New Jersey

• Ratio of earnings threshold for top 20% vs. bottom 20%: $6.79
• Percentage change in income spread (2023 to 2024): -0.21%
• 2024 median household income: $74,747

Philadelphia

• Ratio of earnings threshold for top 20% vs. bottom 20%: $6.29
• Percentage change in income spread (2023 to 2024): -0.58%
• 2024 median household income: $56,385

Jersey City, New Jersey

• Ratio of earnings threshold for top 20% vs. bottom 20%: $6.01
• Percentage change in income spread (2023 to 2024): -1.24%
• 2024 median household income: $82,361

New York City

• Ratio of earnings threshold for top 20% vs. bottom 20%: $5.80
• Percentage change in income spread (2023 to 2024): 0.53%
• 2024 median household income: $79,463

Atlanta

• Ratio of earnings threshold for top 20% vs. bottom 20%: $5.76
• Percentage change in income spread (2023 to 2024): -0.46%
• 2024 median household income: $89,798

Detroit

• Ratio of earnings threshold for top 20% vs. bottom 20%: $5.56
• Percentage change in income spread (2023 to 2024): 0.91%
• 2024 median household income: $55,928

Chicago

• Ratio of earnings threshold for top 20% vs. bottom 20%: $5.50
• Percentage change in income spread (2023 to 2024): 0.39%
• 2024 median household income: $76,614

Memphis, Tennessee

• Ratio of earnings threshold for top 20% vs. bottom 20%: $5.47
• Percentage change in income spread (2023 to 2024): -1.74%
• 2024 median household income: $61,452

Strategies To Navigate Wealth Gaps in These Cities

Living in a city with a high-income divide can be challenging, but there are ways to build financial stability and take advantage of available opportunities.

Take Advantage of Free or Low-Cost Resources

Many cities offer financial literacy programs, workforce training and small business grants. Research nonprofit organizations, libraries and community centers that provide free education and career resources.

Find Housing Assistance Programs

High housing costs are a major contributor to economic stress. Look into rent assistance, first-time homebuyer programs and affordable housing initiatives in your city.

Boost Your Earning Potential

Upskilling can help you move into higher-paying roles. Consider online certifications, technical training or community college courses that align with growing industries in your city.

Start a Side Hustle

Cities with wealth disparities often have strong gig economies. Whether it’s freelancing, ride-sharing or e-commerce, a side hustle can supplement your income and provide financial flexibility.

Get Involved in Community Advocacy

Engage in local initiatives focused on economic equality, fair wages and affordable housing. Voting in local elections and supporting policies that promote economic mobility can contribute to meaningful change.

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