In the period between 2023 and 2024, there was no significant increase in Americans’ income. According to data from the US Census Bureau, the median household income nationwide only rose slightly by just over 1%. However, the income growth in some cities was more significant.
SmartAsset analyzed data from the US Census Bureau and reported that in 2024, the median household income in the US reached $83,730, a year-on-year increase of 1.3%, which was lower than the inflation rate. However, not all areas experienced the same trend, especially in major cities, where income growth reached double digits in some cases or even saw negative growth.
The fluctuation in income within a city can lead to different dynamics in local business demand, the job market, and even the impact of new tax laws on residents. Taking this into consideration, SmartAsset ranked the 50 most populous cities in the US based on the one-year change in median household income from 2023 to 2024, including detailed data for seniors and families.
According to SmartAsset’s analysis of the Census Bureau data, in Tampa, Florida, the median household income in 2024 surged from $72,851 in 2023 to $97,219, marking a growth of over 15%, the largest income growth rate among the 50 largest cities in the US. However, there were variations in income growth among different demographics, with a 17.4% increase for seniors but a 6.2% decrease for families with children.
Median household incomes in three California cities also achieved double-digit growth, namely Long Beach, San Francisco, and Fresno.
Most of the cities analyzed by SmartAsset experienced income growth rates higher than the national average. From 2023 to 2024, only five of the largest US cities had median household income growth rates lower than the national average, while seven cities saw a decline in income.
Jaclyn DeJohn, the Director of Economic Analysis at SmartAsset, told CNBC Make It, “The economic dynamics of major cities can bring about greater volatility and are more likely to trigger wage growth events, such as attracting new businesses and populations. In contrast, suburbs and urban areas are less impacted by such economic systems, thus the possibility of year-on-year changes is smaller, and the magnitude is also smaller.”
Based on SmartAsset’s data, here are the top 10 US cities with the fastest income growth rates from 2023 to 2024 and their respective growth rates:
1. Tampa, Florida: 15.46%
2. Long Beach, California: 11.90%
3. San Francisco, California: 10.31%
4. Fresno, California: 10.19%
5. Louisville, Kentucky: 9.37%
6. San Jose, California: 8.81%
7. Baltimore, Maryland: 8.73%
8. Tucson, Arizona: 8.57%
9. Chicago, Illinois: 8.24%
10. Mesa, Arizona: 8.13%
The significant income growth in Tampa was largely attributed to its elderly population. DeJohn stated, “Florida is known for its pleasant climate, low taxes, and other convenient amenities, making it highly attractive to seniors.”
“Seniors who decide to relocate from other states usually bring in new income, leading to annual fluctuations in the elderly household indicators in Tampa and other cities in Florida,” he said.
According to SmartAsset’s analysis of the latest data from the Census Bureau, Florida ranked first in terms of net inflow of retirees in 2023. However, the number of residents aged 60 and above in Tampa saw a net decrease.
The median household incomes in three California cities also experienced double-digit growth. Long Beach saw a significant increase of 11.9%, reaching $91,318, marking it as the second highest-growing city in this study. San Francisco ranked third with a growth rate of 10.3%, reaching $139,801; Fresno ranked fourth with a growth rate of 10.2%, reaching $74,491.
In California, many of the fastest-growing cities in terms of income also have a concentration of the highest-earning households in the US.
San Jose, California, remains the highest-earning major city in the US, with a median household income growth of 8.8%. The increase is even more significant for families with children at 13.7%, while for seniors, it is only 7.7%. San Jose ranks sixth in overall income growth.
According to SmartAsset’s analysis, San Jose and San Francisco were ranked first and second in terms of median household income in the US in 2023 and maintained these positions in 2024. These two major tech hubs boast a large number of high-paying jobs, with their median household incomes significantly higher than other cities and experiencing substantial growth over the past year. The median household income in San Jose, California, surpasses $148,000.
“The high profits of tech companies translate into fierce talent competition among businesses to maintain their leading positions, so employers in the Silicon Valley area may continue to increase wages to retain or attract talent,” DeJohn remarked.