America’s upper classes are growing despite record-low living costs, a new study finds.
The share of American households considered upper class soared from 14 percent to 21 percent between 1971 and 2021, according to figures from the Pew Research Center.
This means that traditionally working-class cities are now being “taken over” by wealthy families earning $150,000 or more.
GOBanking Fees analyzed all US cities with more than 40,000 households to find where the share of upper-class residents has grown the most.
Their results show that more than 50 percent of the richest cities in the United States are in California.
By comparison, states like Nevada, Virginia, Idaho, Texas and Arizona had just one city on the list.
GOBankingRates analyzed all U.S. states with more than 40,000 households based on the 2022 American Community Surveys conducted by the U.S. Census Bureau.
U.S. residents fall into both low- and high-income brackets, which have risen steadily throughout the year.
But it was the Texas town of Lewisville that experienced the biggest change.
About 20.8 percent of 48,725 households were upper class in 2022, up from 8.8 percent in 2017.
This means that in five years the number of upper-class households has skyrocketed by 135.56 percent.
The city, which is located in the Dallas-Fort Worth metropolitan area, is perhaps most famous for its 29,000-acre reservoir, Lake Lewisville, known as the “urban bass fishing capital of Texas.”
More than half of Texas home mortgages had rates below four percent, according to data from the Federal Housing Finance Agency.
Washington home prices rose more than six percent compared to 2023 and sold for a median price of $657,700
The median sales price of homes in the city is $412,000, according to Red fin.
Next was Bend, Oregon, where its share of upper-class households soared to 136.27 percent.
Homes in the area, known for its extensive hiking trails, typically sell for $750,000, Redfin notes.
The 17 California cities on the list include Oakland, Anaheim, Oceanside and Oxnard.
California is the richest state in the US, with a net worth of $6 trillion (about $160,000 per resident).
Santa Ana ranked first among California cities in the study, coming in third place.
The proportion of its 77,553 households considered upper class was nine percent in 2017.
By 2022, this figure had risen to 21.2 percent.
Data collected earlier this year by GOBankingRates found that more than 50 percent of the wealthiest cities in the United States are in California.
The 2023 housing market crash caused a 42 percent drop in California home sales over two years.
GoBanking Fees The percentage increase over five years was estimated to be 135.56 percent.
The rise in upper-class households is striking at a time when Americans continue to struggle with red-hot inflation and record-low interest rates.
The annual inflation rate is currently around 3.3 percent, according to Bureau of Labor Statistics figures for May.
In response to rising prices, the Federal Reserve has embarked on an aggressive tightening cycle that has pushed its benchmark funds rate to a 22-year high of between 5.25 percent and 5.5 percent.
In theory, raising interest rates is intended to curb consumer spending and lower prices.
The Federal Reserve funds rate has a domino effect on the interest rates offered to consumers on their mortgages, auto loans, and credit cards.
Figures from the government-backed lender Freddie Mac It shows that the average rate on a 30-year fixed-rate mortgage is currently 6.95 percent.
Lewisville, Texas
Total number of households in 2022: 48,725
Upper class households in 2017: 8.8%
Upper class households in 2022: 20.8%
Change in 5 years in upper class households: 136.36%
Bend, Oregon
Total number of households in 2022: 42,151
Upper class households in 2017: 10.2%
Upper class households in 2022: 24.1%
Change in 5 years in upper class households: 136.27%
Santa Ana, California
Total number of households in 2022: 77,553
Upper class households in 2017: 9%
Upper class households in 2022: 21.2%
Change in 5 years in upper class households: 135.56%
Hillsboro, Oregon
Total number of households in 2022: 40,633
Upper class households in 2017: 13%
Upper class households in 2022: 27.5%
Change in 5 years in upper class households: 111.54%
Fontana, California
Total households in 2022: 55,856
Upper class households in 2017: 11.1%
Upper class households in 2022: 23.4%
5-year change in upper-class households: 110.81%
Chula Vista, California
Total number of households in 2022: 83,074
Upper class households in 2017: 13.8%
Upper class households in 2022: 28.7%
Change in 5 years in upper class households: 107.97%
Concordia, California
Total number of households in 2022: 45,574
Upper class households in 2017: 15.7%
Upper class households in 2022: 32.6%
Change in 5 years in upper class households: 107.64%
Clovis, California
Total number of households in 2022: 40,135
Upper class households in 2017: 14.6%
Upper class households in 2022: 29.8%
Change in 5 years in upper class households: 104.11%
Kent, Washington
Total households in 2022: 45,699
Upper class households in 2017: 11.6%
Upper class households in 2022: 23.3%
Change in 5 years in upper class households: 100.86%
Pictured: Puget Sound, Washington
Lakewood, Colorado
Total number of households in 2022: 68,111
Upper class households in 2017: 10.9%
Upper class households in 2022: 21.8%
Change in 5 years in upper-class households: 100%
Vallejo, California
Total households in 2022: 44,107
Upper class households in 2017: 11.9%
Upper class households in 2022: 23.7%
Change in 5 years in upper class households: 99.16%
Riverside, California
Total number of households in 2022: 90,540
Upper class households in 2017: 10.9%
Upper class households in 2022: 21.7%
Change in 5 years in upper class households: 99.08%
Arvada, Colorado
Total number of households in 2022: 50,211
Upper class households in 2017: 15.9%
Upper class households in 2022: 31.1%
Change in 5 years in upper class households: 95.60%
Garden Grove, California
Total number of households in 2022: 48,183
Upper class households in 2017: 12%
Upper class households in 2022: 23.4%
Change in 5 years in upper class households: 95%
Corona, California
Total number of households in 2022: 46,524
Upper class households in 2017: 15.4%
Upper class households in 2022: 29.9%
Change in 5 years in upper class households: 94.16%
Hayward, California
Total number of households in 2022: 49,542
Upper class households in 2017: 16.6%
Upper class households in 2022: 32.1%
Change in 5 years in upper class households: 93.37%
Escondido, California
Total number of households in 2022: 51,288
Upper class households in 2017: 10.9%
Upper class households in 2022: 20.9%
Change in 5 years in upper class households: 91.74%
Beaverton, Oregon
Total number of households in 2022: 40,812
Upper class households in 2017: 12.9%
Upper class households in 2022: 24.7%
Change in 5 years in upper class households: 91.47%
Peoria, Arizona
Total number of households in 2022: 71,733
Upper class households in 2017: 12.5%
Upper class households in 2022: 23.9%
Change in 5 years in upper class households: 91.20%
Meridian, Idaho
Total number of households in 2022: 42,843
Upper class households in 2017: 12%
Upper class households in 2022: 22.7%
Change in 5 years in upper class households: 89.17%
Pictured: Sawtooth National Forest, Idaho
Ventura, California
Total number of households in 2022: 41,954
Upper class households in 2017: 14.4%
Upper class households in 2022: 27.1%
Change in 5 years in upper class households: 88.19%
Thornton, Colorado
Total households in 2022: 48,466
Upper class households in 2017: 12.7%
Upper class households in 2022: 23.8%
Change in 5 years in upper class households: 87.40%
Pictured: Greeley, Colorado
Santa Rosa, California
Total number of households in 2022: 68,096
Upper class households in 2017: 14%
Upper class households in 2022: 26.1%
Change in 5 years in upper class households: 86.43%
Seaside, California
Total households in 2022: 61,636
Upper class households in 2017: 12.9%
Upper class households in 2022: 24%
Change in 5 years in upper class households: 86.05%
Oxnard, California
Total number of households in 2022: 51,099
Upper class households in 2017: 11.9%
Upper class households in 2022: 22%
Change in 5 years in upper class households: 84.87%
Portland, Oregon
Total households in 2022: 283,896
Upper class households in 2017: 13.7%
Upper class households in 2022: 25.3%
Change in 5 years in upper class households: 84.67%
Oakland, California
Total households in 2022: 170,282
Upper class households in 2017: 17.7%
Upper class households in 2022: 32.5%
Change in 5 years in upper class households: 83.62%
Chesapeake, Virginia
Total number of households in 2022: 91,368
Upper class households in 2017: 13.9%
Upper class households in 2022: 25.5%
Change in 5 years in upper class households: 83.45%
Henderson, Nevada
Total households in 2022: 124,626
Upper class households in 2017: 13.2%
Upper class households in 2022: 24.2%
Change in 5 years in upper class households: 83.33%
Anaheim, California
Total households in 2022: 104,671
Upper class households in 2017: 13.7%
Upper class households in 2022: 25.1%
Change in 5 years in upper class households: 83.21%
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