America's Richest Living Areas
Okay guys, please don't kill me for linking to such plebeian source of information, but I found this a really interesting list.
In a nutshell, it's your basic breakdown of the top 15 areas in terms of the percentage of households earning $200,000 per year or more.
To my eye, however, this list is as much a crystal ball as it is a dry analysis...let's see if you guys agree with my extrapolations and can perhaps add a few more...
Three Things That Jump Out
1) The Top 5 up and down the 95
No, it doesn't shock me to see New York and D.C. near the top. I am, however, pretty disgusted by the idea that the TOP FOUR wealthiest (i.e. most influential ) areas in the country are essentially these two cities. I does not bode well for any of us, especially those working on Wall Street if this hydra continues to grow.
2) California #6
Maybe #2 should have been #1 to me ? With all the tech geeks that got fat in the 90's and all those Hollywood and music biz dollars, California is high atop the list in terms of rich individuals. With much of this wealth concentrated in places like Beverly Hills, Newport Beach, etc...the fact that the entire state is being listed shows the intent to disguise California's current fiscal malaise. Remember guys, if Cali goes...we all go. And she certainly seems to be heading... somewhere.
3) Illinois #10
Not only will you struggle to find people in Illinois making over $200K/year, you will seriously struggle to find those people in Chicago. Unless you are looking on or around Wacker Drive that is . I have traveled all over the U.S. and have yet to see a city so dependent on one single street as Chicago is on its maven of financial and corporate activity. Being that Illinois is in the same fiscal dumpster as California and that Chicago corporate tax rates are the highest in the country... God help the city budget if more of these high rent tenants start exploring suburban options, as some already have.
Much like California with Los Angeles, the wealth of Illinois is concentrated in and around Chicago. Though many of the money makers in both states enjoy sprawling suburban domiciles, the real money is in these two cities. The fact that it is the two states mentioned on the list and not the two cities should be a tell tale sign of the iniquity of wealth in these areas.
Just a few thoughts to keep in mind for those considering relocation and taxation in the oncoming few years.
I'm off to stock up on liquor for Friday...
Welcome back Midas. Completely agree with the concentration of wealth along the 95.
If you want to get granular, here are the 1000 richest neighborhoods in the country, complete with Google Maps boundaries: http://higley1000.com/about-this-site/methodology/neighborhoods-by-metro
Booyah to Massachusetts! I've lived less than a mile away from 95 my entire life (about 6 different locations spanning 500+ miles). Weird to think about how I'm so strangely connected to the interstate.
This probably helps some (I think we are in the wrong business)...
http://washingtonexaminer.com/blogs/beltway-confidential/2010/12/power-…
It's worth noting that DC isn't a rich area because businesses are innovating and creating wealth, it's simply because of very robust, recession proof government jobs. Many people in the DC metro don't even realize the country is coming out of a recession. It's great they aren't suffering like everyone else (why spread the pain?) but this has to be the least efficient (comp divided by actual work) place outside of the NY area with all of it's unions (see link above).
Regards
Goodbread, wow that's scary. I can tell you first hand, I know way to many people that live in the Highley1000's #5 richest neighborhood. Some of the houses there are absolutely gorgeous, particularly the classic Stewart Heartshorn Homes. Alot of those homes are easily worth 3+ Million without even trying (and that's fair value, particularly when you consider the location and proximity to a driect train into NYC coupled with a name like Short Hills).
CPH, that's the Unions for you.
Ok, so what's is your point? It's been pretty well known the stretch from Boston to DC in the East Coast corridor is where the money and power reside. California has hi-tech, show biz, etc. The rest of America produces food and where the suburbs are. There is this place called Chicago sitting by the lake and the second city.
California is super bi-partisan basket case where a super-major is needed to change taxes, and the whole state is gerrymandered like no other. Chicago is almost as corrupt as they come. DC and NYC share the power in wealth and policy. Atlanta to Charlotte is the economic corridor and the economic center of the Southeast.
My prediction is more and more younger people from above average colleges will move to the South, particularly Texas in the upcoming decade or two. Lower cost of living, easier job opportunities. This is backed up by the consensus report. New York, Ohio Lose Out in New Census; Texas Wins
http://blogs.forbes.com/jonbruner/2010/12/21/new-york-ohio-lose-out-in-…
I've actually thought about doing this ever since Uncle Eddie had that post about New York vs. Houston. It's so much cheaper in the South. I'm not sure if I could handle the extremely hot weather in a place like Houston, but I feel some of the Southern cities can't be that bad.
LOL....
Whoa whoa whoa. Easy, guys.
I don't need to be getting blamed for an influx of Yankees.
LOL - never been to NY in my life.
You f*ck.
To the point about D.C. and the government jobs, it's much more than that. There is a truly enormous government consulting industry that populates the region (unfortunately, my home). These people are subhuman leeches of the tax payer. And the federal government has created an entire class of bureaucracy that "requires" a college degree so that they can justify the high pay and benefits given to employees. For example, every time the topic is brought up about the breathtaking disparity between government and private sector pay, bureaucrats--ok, Democrats and liberals--defend the compensation by noting the higher level of education required for a large portion of federal jobs. Of course, the vast majority of federal jobs are administration, and yet a college degree is virtually always required for glorified administrative jobs.
So, the federal government requiring college degrees as well as the government consulting leeches requiring similar academic backgrounds, and you've got 2 huge, well paid parallel industries populating the region. Then you add in the fact that these industries attract college educated persons looking for opportunity, unassociated private businesses set up shop in the region to benefit from the quality workforce. Then you've got all the ancillary industries that benefit from D.C. being the nation's capital (and the center of bureaucracy), such as hospitality, commercial real estate, law, accounting, lobbying, general consulting, IT, etc. and you've got a formula for an entire region directly and/or indirectly bloated in prosperity from the federal government.
Then you add in the fact that women in the D.C. region value their careers far more than their families and you've got essentially all but a few households with 2 incomes. 2 high incomes = a relatively rich area. I assure you the people in the DC region are not even aware a recession exists.
How is this calculated? The household numbers look wrong. If you take a look at the population of DC it doesn't make sense that over 8% of resident households are earning over $200k. Outside of NW the city is a wasteland. I don't buy it.
i like your description of wacker and being from chicago, it couldnt be closer to the truth. however, i dont see a problem with this...wacker is now what wallstreet used to be to mid town nyc, except that now all the major banks and firms are leaving the street and seeking cheaper space within the nyc area. as for the distribution of wealth, there are many wealthy people living in chicago, however the real wealth is in the suburbs, areas like kenilworth, winnetka, northbrook, barrington, glencoe, mettawa, lake forest, etc.
Couple of things on Chicago: Population in the city is on the decline, mostly due to consolidation of apartment units (2 shitty units = 1 yuppie condo). Job growth is also slightly down over a 10 year period and I consider job growth to be the major indicator of an areas health (both for real estate values and obviously for overall city wealth). So in those categories Chicago is trending a bit down. However it isn't true to say that places are moving to the suburbs from downtown. That was more a 80s phenomenon and now those same companies (Motorola for example) are having to open up offices downtown to attract younger talent. Who the fuck wants to live in Schaumberg in their 20s (or ever)?
I don't think I could ever do Texas. The South, yes. Texas..
While taken out of context, one of the most ignorant comments I've ever read... "Not only will you struggle to find people in Illinois making over $200K/year, you will seriously struggle to find those people in Chicago."
I'm printing it as we speak and hanging it by my desk.
Those "subhuman" government consultants are doing much of their work for DoD. That might change some of your perspectives.
The combination of government bureaucracy and unionization is especially ridiculous...there's no way a postal carrier or train operator should be making six figures, let alone 250K.
And as for 2 income families...maybe if women in the rest of the country were willing to work as hard as in DC (if that's even true), we'd have fewer kids feeling like special unique snowflakes because mommy dotes on them, more smart people utilizing their educations to innovate rather than discuss books in their housewife book club, and we wouldn't be getting our asses handed to us by Asia.
I'm under the impression that the Department of Education also hires a significant number of consultants. See video 1: http://www.wallstreetoasis.com/group-post/the-relationship-between-econ…
I'm under the impression that the Department of Education also hires a significant number of consultants. See video 1: http://www.wallstreetoasis.com/group-post/the-relationship-between-econ…]
For some reason, I can't log-in to see this video. Do you need to do something special besides being a regular member?
As a native of the D.C. area, the son of 2 federal employees, a former Freddie Mac employee, step-son of a retired air traffic controller, the brother-in-law of a DoD defense contractor, cousin of an NSA codebreaker, and brother to a local public school teacher, you don't need to talk to me like I'm from Bumfuck, North Dakota. The bureaucracy is the bureaucracy, defense or not. It's like a parasite all over the region. I'm well aware of how it works here, about 1,000 times more aware than most people will ever be.
To the "hard work" comment--there's nothing more honorable and more difficult than being a good mother (or father, for that matter). Raising well adjusted, well educated children and investing in their character is about a thousand times more honorable than pushing paper for the government or for some company. I'd submit to you that it's not stay-at-home moms who create spoiled, poorly adjusted me-first kids. It's far more likely that the spoiled, lazy, poorly adjusted kids are from wealthy, 2-income families whose parents delegated parenting to nannies and to the xBox. My aunt from Kansas stayed at home with 5 children and they are the most successful, intelligent, selfless, kind and caring bunch of kids (and now adults) you'll ever meet, the type of people that DC or NYC (myself included) could never reproduce with their cultures and their "wealth".
Most of the high income jobs in DC are in the legal, consulting, PE, lobbying, and contracting fields. The percentage of people making $200k+ a year that work for the government is small. Every city has bureaucracy. DC has more of it than many places but your theory that the government workers are the ones getting the big salaries is incorrect. Also, I've never met an assistant at any company that didn't go to college so I'm not sure what your point is there.
Dude, have you ever been to LA? Except for a handful areas, the place is a shithole. I'll give you their influence on GDP in absolute terms, but one can hardly claim that the per capita wealth is there. The only reason they're an economic draw in absolute terms is because they have so many low-wage workers that the multiplication has to work. The real "wealth" is with us in the Bay and to a lesser extent the fine people down in SD. Honestly, LA is arguably the reason we're in this mess.
http://www.portfolio.com/interactive-features/2010/02/us-wealth-centers http://en.wikipedia.org/wiki/Highest-income_metropolitan_statistical_ar…
VTech, not sure how I was talking down to you...good point about the spoiled kids, I definitely have met plenty of rich friends of friends raised by nannies who turned into brats. Growing up in a very middle-class environment in a small city where most families had 2 parents working because they had to, plenty of my friends and I went home after school and watched Power Rangers until the folks got home, and we ended up all right. My parents did a lot for my brother and I while balancing work (led our scout troops, etc.)
It's funny, I think it's much harder to raise well-adjusted kids when you're wealthy than in a middle class environment...one more reason not to get married and have kids.
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