Relocating to a city with a high concentration of lucrative job opportunities can significantly boost your earning potential. It’s wise to secure a well-paying job before moving to these affluent cities, given their elevated living costs.
Despite the rise of remote working post-pandemic, physically being in the office can be crucial for career advancement, especially in your 20s and 30s. Being present in the workplace facilitates networking and helps you build a support system of colleagues who can aid in your career progression.
Let’s delve into the latest income rankings of metropolitan areas according to the U.S. Department of Commerce.
Top-Paying Metro Cities for Income
The following are the metro areas with the highest incomes as of 2021:
- San Jose-Sunnyvale-Santa Clara, CA
- Bridgeport-Stamford-Norwalk, CT
- San Francisco-Oakland-Berkeley, CA
- Boston-Cambridge-Newton, MA-NH
- Seattle-Tacoma-Bellevue, WA
Targeting these top-paying metros can be a strategic move for those seeking substantial earnings.
I have a personal affinity for San Francisco, having resided here since 2001. Despite its mixed reputation for weather, high living costs, and wealth disparity, it’s a city of significant opportunity. I also have fond memories of New York City, where I lived from 1999 to 2001, and believe that with more financial resources, I would have enjoyed it even more.
Longevity of Top Income Metros
Remarkably, six out of the top ten highest income metros in 2021 also held these ranks in 1980. This indicates that high-income regions tend to maintain and build upon their economic advantages, while lower-income areas often struggle to break out of their economic status.
Cities like Fayetteville-Springdale-Rogers, AR, Austin-Round Rock-Georgetown, TX, and Boston-Cambridge-Newton, MA-NH have shown impressive growth. In hindsight, Boston’s potential was apparent due to its academic excellence and relatively affordable living costs compared to New York City.
Potential Rising Metro Areas
Identifying the next top-income metro areas is the billion-dollar question. Regions like Northwest Arkansas, Provo-Orem, Austin, Nashville, Charleston, Milwaukee, and Raleigh are showing promising signs. They boast strong job and income growth and maintain a reasonable cost of living.
Given Charlotte’s status as a financial hub, Raleigh’s proximity could indicate potential growth in finance, while Austin is rapidly emerging as a tech hub. Once a metro area gains momentum in job growth, it often leads to a cycle of business expansion, infrastructure improvement, and increased migration.
Key to Income Growth: Technology and Finance
Since 1980, technology has been a significant driver of income growth, as evidenced by the performance of tech giants like Apple, Google, Microsoft, and Amazon in metros like San Jose, San Francisco, and Seattle.
The finance sector has also played a vital role in the income growth of metros like Bridgeport, Boston, and New York. Innovations in finance have substantially contributed to wealth creation in these areas.
Furthermore, the continuous growth of the federal government has kept the Washington-Arlington-Alexandria metro among the top income regions for over four decades.
Strategies for Wealth Accumulation
Based on U.S. Department of Commerce data, the following strategies can enhance your chances of amassing wealth:
- Pursue employment in one of the top-income metros.
- Focus on careers in finance, technology, or the federal government.
- Maintain a long-term work commitment.
- Invest in real estate in leading income metros, as successful regions tend to maintain their momentum.
- Seek real estate investments in emerging metros with high job growth.
- Consider relocating to a lower-income metro with a more affordable cost of living later in your career or during retirement.
My Personal Experience in High-Income Metros
Having spent the initial years of my career in New York City and the subsequent twenty-two in San Francisco, I believe my income would have consistently grown in New York. If I were still in finance, I estimate a 65% chance of earning over $1 million annually by now. However, this might have come at the cost of personal well-being.
Location plays a pivotal role in wealth accumulation. Many individuals in New York and San Francisco have become incredibly wealthy simply by being part of the right company at the right time. Even the brightest individuals may struggle to reach the top 1% income bracket if their local market lacks substantial corporate growth.
