Household income climbs in some big cities, outweighed by inflation in others

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 rate, meaning that many households effectively lost homebuying power. But in several major cities, incomes 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 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 explained.

Winners and losers

Tampa 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 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, 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 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 shows.

San Francisco 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 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.