If you’re looking to boost your income, consider relocating to a city with a high concentration of well-paying jobs. But be smart about it – try to land a lucrative job offer before you pack your bags. These cities often come with a higher cost of living, so you’ll want to be prepared.
Even though remote work has become more common after the pandemic, if you’re in the early stages of your career, it’s still beneficial to be physically present in the office. Networking is crucial in your 20s and 30s, and being in the office can help you build relationships that will support your career growth.
Now, let’s talk about the cities that offer the highest incomes. According to the U.S. Department of Commerce, the top five cities with the highest income in 2021 (and the rankings are pretty much the same in 2024) are San Jose-Sunnyvale-Santa Clara, CA; Bridgeport-Stamford-Norwalk, CT; San Francisco-Oakland-Berkeley, CA; Boston-Cambridge-Newton, MA-NH; and Seattle-Tacoma-Bellevue, WA.
If you’re aiming to earn big bucks, these cities should be on your radar. I have a soft spot for San Francisco, having lived here since 2001. Despite the high cost of living and unpredictable weather, the city is a hub of wealth creation, especially with the ongoing boom in artificial intelligence.
Looking back, I wish I had more money when I lived in New York City from 1999 to 2001. It’s a fantastic city, at least for half the year.
Interestingly, six of the top ten highest income cities in 2021 were also in the top ten back in 1980. This suggests that cities that were wealthy 40 years ago have managed to maintain their wealth, while those that were poorer have struggled to catch up. However, there are exceptions. For instance, Fayetteville-Springdale-Rogers, AR; Austin-Round Rock-Georgetown, TX; and Boston-Cambridge-Newton, MA-NH have all made impressive leaps in the rankings.
So, what’s next? Which cities are likely to climb the income rankings? Northwest Arkansas, Provo-Orem, Austin, Nashville, Charleston, Milwaukee, and Raleigh are all promising contenders. They’re experiencing strong job and income growth, and their cost of living is still relatively affordable.
The key to higher income growth seems to be technology, followed by finance. The best-performing stocks over the past few decades have mostly been tech companies like Apple, Google, Microsoft, and Amazon, all based in the San Jose, San Francisco, and Seattle areas. The finance industry has also played a significant role in boosting incomes in cities like Bridgeport, Boston, and New York.
If you’re looking to get rich, here’s what the data suggests: work in a high-income city (despite the higher cost of living), get a job in finance, technology, or the federal government, work as long as you can, invest in real estate in high-income cities, and consider relocating to a lower-income city once you’re experienced or ready to retire.
Unfortunately, most of the best-paying jobs are in high-tax states. But if you can work remotely for a top company while living in a state with no income tax, you’ll be in a great position.
I’ve spent my career in two of the top income cities – New York City and San Francisco. I’m confident that if I had stayed in New York City, I would have continued to earn a healthy six-figure income as my career progressed.
While hard work and skill are important, being in the right place at the right time can significantly increase your chances of getting rich. There are plenty of regular folks in New York and San Francisco who have become incredibly wealthy just by joining the right company and sticking with it.
So, what do you think? Which city will be the next top income metro? How important is it to live and work in a high-income city if you want to get rich? What’s stopping people from moving to these cities?
Investing in real estate in a high-growth city is a great way to build wealth. Platforms like Fundrise and Crowdstreet offer opportunities to invest in real estate in promising cities. I’ve personally invested $954,000 in private real estate since 2016 to diversify my portfolio and earn passive income.
Remember, making a high income is just one part of the equation. Investing wisely and strategically is equally important.
