Household income in the U.S. rose slightly in 2024, but the picture looks very different depending on where you live.
The national median income reached $83,730 last year, up 1.3% from 2023, according to a new report from online fintech company SmartAsset.
That modest increase failed to keep pace with the roughly 3% inflation[1] rate, meaning that many households effectively lost homebuying power. But in several major cities, incomes[2] surged by double digits while others saw steep declines.
SmartAsset ranked the 50 largest U.S. cities by population, analyzing year-over-year shifts in median income among the general population, seniors[3] and families with children.
“Changes in incomes across a city can lead to different dynamics on local demand for businesses, job markets, and even have implications for how new tax legislation will affect residents,” the report[4] explained.
Winners and losers
Tampa[5] led the nation with a 15.5% jump in median income during the year, going from $72,851 to $84,114 per household.
But the city’s growth wasn’t evenly shared as seniors posted a 17.4% increase and families with children saw a 6.2% decline.
California[6] cities accounted for three of the top four spots. Incomes in Long Beach rose 11.9% to $91,318, followed by San Francisco (+10.3% to $139,801) and Fresno (+10.2% to $74,491).
San Jose remains the nation’s highest-earning large city, where the median household income reached $148,366 after an 8.8% gain. Families with children fared even better, with a 13.7% jump to more than $201,000.
Seattle[7], meanwhile, offers a stark example of divergent outcomes.
While overall household income there fell 1.5%, seniors saw a 24.1% boost to $80,550. Families in the city now average $221,579 — joining San Jose and San Francisco as the only places where family income tops $200,000.
Not all households are prospering. Minneapolis[8] posted the sharpest drop among major U.S. cities. The median income there fell 4% to $77,732, below the national median. Families absorbed the brunt of the decline, with a nearly 20% plunge to $102,424.
California incomes up, home prices down
California’s largest housing markets are cooling even as incomes climb, HousingWire Data[9] shows.
San Francisco[10] saw the sharpest decline, with single-family home prices falling 7.4% year over year to $1.199 million, while the median household income jumped 10.3% to $139,801.
Los Angeles[11] followed with a 6.7% drop to $1.4 million, despite household incomes rising 11.9% to $91,318. In San Jose, home prices slipped 2.8% to $1.749 million — still the most expensive market tracked.
Elsewhere, Minneapolis posted the strongest appreciation, up 5% to $525,000 even as incomes fell. Tampa saw prices edge down 1.1% to $459,999.
References
- ^ inflation (www.housingwire.com)
- ^ incomes (www.housingwire.com)
- ^ seniors (www.housingwire.com)
- ^ report (smartasset.com)
- ^ Tampa (www.housingwire.com)
- ^ California (www.housingwire.com)
- ^ Seattle (www.housingwire.com)
- ^ Minneapolis (www.housingwire.com)
- ^ HousingWire Data (www.housingwire.com)
- ^ San Francisco (www.housingwire.com)
- ^ Los Angeles (www.housingwire.com)