Superstar Cities and Income Inequality

The top five MSAs in the U.S. where the average worker has the most left over after housing costs also happen to be the country’s premier tech hubs and superstar cities (where housing demand exceeds supply and supply growth is limited). In these markets, the most advantaged residents derive the majority of the gains, according to Richard Florida writing for the The Atlantic. In San Jose the average “creative class” worker has $80,503 left over after paying for housing, the average working class worker has $23,109 left over and the average service class worker has $14,372. The working class and service class workers’ post-housing incomes in these MSAs are not much different from the post-housing incomes for these classes of workers in the five MSAs with the overall least post-housing income.

Chart: Martin Prosperity Institute (via The Atlantic) – Data: U.S. Dept. of Labor, U.S. BLS, U.S. Census

Comments are closed.