Some cities are becoming known for their rising incomes—even as others see high levels of poverty and spiking costs of living—but one of the experts Newsweek spoke to said it's important to avoid the "dark side" of this new trend.
The top three cities—The Woodlands, Texas; Palm Beach, Florida; and Rancho Cucamonga, California—all saw median earnings grow by roughly 30 percent over a year. Meanwhile, the median income for America's largest cities rose by only 8.1 percent.
SmartAsset analyzed Census Bureau data for 349 cities in America and came back with a list of the top cities for rising incomes.
Meanwhile, New York City (ranked 132) left much to be desired for residents battling inflation. The median income rested at around the national average of $74,580 even as New Yorkers face an especially high cost of living, somewhere between 26 and 122 percent higher than the national average.
Some cities saw their incomes decrease by more than 10 percent. That was true most for Lafayette, Louisiana, (ranked 349) where earnings fell from $57,953 to $50,504. Lee's Summit, Missouri, (348) and Stamford, Connecticut, (347) also saw declines of $10,000 from roughly $100,000 to $90,000.
The Bay area saw steady growth and a median income of $170,000, reflecting both a thriving tech industry as well as an inflated cost of living.
Here's the top 10 list of cities by rising income:
- The Woodlands, Texas (31.06%)
- Palm Bay, Florida (30.87%)
- Rancho Cucamonga, California (29.21%)
- Visalia, California (26.8%)
- Buckeye, Arizona (26.28%)
- Fort Lauderdale, Florida (25.62%)
- Miami, Florida (25.01%)
- Elizabeth, New Jersey (24.37%)
- Antioch, California (23.66%)
- Surprise, Arizona (23.59%)
Remote work impacts cities' wage growth
Wage growth in a city has typically always symbolized that new employers have moved into an area. But with the rise of remote work, many of the expensive suburbs seeing income jumps are a result of remote working professionals moving out of major cities to live comfortably in new homes with more space.
"Almost every city on the top of this list is a high-end, fast-growing suburb," Ann Martin, the Director of Operations of CreditDonkey, told Newsweek. "These are places that are rapidly evolving from middle class to upper-middle class, with growing property values allowing for low-tax growth near major employment hubs."
Certain industries can also prompt high-income growth.
In Miami, for instance, tourism has accelerated the median earnings past previous levels, with the state planning to adopt a $15 minimum wage in 2026.
"From what I have seen and heard a major reason for the surge in growth is due to the amount of people traveling to Miami," Miami resident Emily Johnson, who is also a nutritionist for Juice Report, told Newsweek. "I have lived here for most of my life, and in recent years the amount of tourism has had a steep increase."
Texas lures in big names
Meanwhile, Texas is seeing a surge in income due to favorable tax policies, a large talent pool and major corporations like Oracle and Tesla moving into the state.
"I've witnessed firsthand the economic boom that has transformed Texas into a haven for businesses and a magnet for high-earning individuals," Jeremy Scott Foster, the founder and CEO of TravelFreak, told Newsweek.
"This influx of businesses has fueled a surge in the gross national income leading to a remarkable increase in the median income for Texas residents."
According to Chris McGuire, founder of Real Estate Exam Ninja and a real estate investor, urban development hinges on the economic prosperity and innovation located within the city.
"Innovation and entrepreneurship play a central role," McGuire told Newsweek. "Cities that foster innovation through research and development initiatives, startup incubators, and a culture of entrepreneurship tend to attract skilled professionals and investors, driving economic growth."
The cities that often have the highest rising incomes have collaborations between universities and industries as well as solid infrastructure in place.
Quality of life influences income
A city's quality of life, including recreational spaces, healthcare facilities, and safety, also influences income growth, McGuire said. Cities that invest in these areas tend to retain residents and appeal to newcomers, making them more attractive to higher-paying companies and industries as well.
Even in cities with rising incomes, though, there might be a tension at play when this doesn't reflect the entire population's experience.
"Rising income inequality can lead to social tensions and affect the overall social fabric of a city," McGuire said. "Ensuring that economic growth is inclusive and benefits all residents, regardless of their socio-economic background, is a challenge that cities must address."
In the Bay area, for instance, an influx of tech workers might make the income growth appear higher, but many residents are still struggling.
"This doesn't paint as rosy a picture as it would suggest," Pete Evering, the business development manager of California-based Utopia Property Management, told Newsweek.
"As always, these stories of gentrification have a darker side to it. In my observation, it only demonstrates how the unaffordability of real estate in California has worsened. With every tech-employed resident that moves into the Bay Area, a family would have been priced out of the market and forced to move somewhere else."
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning ... Read more
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