America’s upper classes are growing despite record high living costs, a new study has found.
According to figures from the Pew Research Center, the percentage of American households considered upper class rose from 14 percent to 21 percent between 1971 and 2021.
This means that traditionally blue-collar towns are now being ‘taken over’ by affluent households earning $150,000 and up.
GOBankingRates analyzed all US cities with more than 40,000 households to find where the percentage of upper-class residents has grown the most.
His findings show that more than 50 percent of America’s wealthiest cities are in California.
By comparison, states like Nevada, Virginia, Idaho, Texas and Arizona each had just one city to make the list.
GOBankingRates analyzed all US states with over 40,000 households from the 2022 American Community Surveys conducted by the United States Census Bureau
US residents are finding themselves at the lowest and highest income levels, which have risen steadily over the year
But it was the Texan town of Lewisville that saw the biggest change.
About 20.8 percent of the 48,725 households were upper class in 2022, up from 8.8 percent in 2017.
This means that over five years she has seen the number of upper class families increase by 135.56 percent.
The city, which is located in the Dallas Fort-Worth metroplex, is perhaps most famous for its 29,000-acre reservoir, Lake Lewisville – known as the ‘urban bass fishing capital of Texas.
More than half of home mortgages in Texas had rates of less than four percent, according to data from the Federal Housing Finance Agency.
Home prices in Washington increased by more than six percent compared to 2023, selling for a median price of $657,700
The median home sale price in the city is $412,000, according to Redfin.
It was followed by Bend, Oregon, which saw its percentage of upper-class households increase by 136.27 percent.
Homes in the area, known for its wide walking trails, typically sell for $750,000, Redfin notes.
Among the 17 California cities to appear on the list include: Oakland, Anaheim, Oceanside and Oxnard.
California is the wealthiest state in the US, with its net worth reaching $6 trillion — or about $160,000 per resident.
Santa Ana ranked the highest of the California cities in the study, coming in at number three.
The percentage of its 77,553 households that would be considered upper class was nine percent in 2017.
By 2022, this had risen to 21.2 percent.
Data compiled earlier this year by GOBankingRates concluded that more than 50 percent of America’s wealthiest cities are in California.
The 2023 housing market crash affected resulted in a 42 percent two-year decline in California home sales
GoBankingRates calculated the five-year percentage increase to be 135.56 percent.
The rise in upper-class families is surprising as Americans continue to battle sweltering inflation and record high interest rates.
The annual inflation rate is currently at 3.3 percent, according to Bureau of Labor Statistics figures from May.
In response to rising prices, the Federal Reserve has embarked on an aggressive tightening cycle, which has pushed its benchmark funds rate to a 22-year high between 5.25 percent and 5.5 percent.
In theory, higher interest rates are meant to reduce consumer spending and lower prices.
The Fed funds rate has a negative effect on the interest rates offered to consumers on their mortgages, car loans and credit cards.
Figures from government-backed lender Freddie Mac show the average rate for a 30-year fixed-rate mortgage is currently 6.95 percent.
Lewisville, Texas
Total households in 2022: 48,725
Upper class families in 2017: 8.8%
Upper class households in 2022: 20.8%
5-year change in upper class families: 136.36%
Bend, Oregon
Total households in 2022: 42,151
Upper class households in 2017: 10.2%
Upper class households in 2022: 24.1%
5-year change in upper-class families: 136.27%
Santa Ana, California
Total households in 2022: 77,553
Upper class families in 2017: 9%
Upper class households in 2022: 21.2%
5-year change in upper-class families: 135.56%
Hillsboro, Oregon
Total households in 2022: 40,633
Upper class families in 2017: 13%
Upper class households in 2022: 27.5%
5-year change in upper class families: 111.54%
Fontana, California
Total households in 2022: 55,856
Upper class households in 2017: 11.1%
Upper class households in 2022: 23.4%
5-year change in upper class families: 110.81%
Chula Vista, California
Total households in 2022: 83,074
Upper class families in 2017: 13.8%
Upper class households in 2022: 28.7%
5-year change in upper-class families: 107.97%
Concord, California
Total households in 2022: 45,574
Upper class families in 2017: 15.7%
Upper class households in 2022: 32.6%
5-year change in upper-class families: 107.64%
Clovis, California
Total households in 2022: 40,135
Upper class families in 2017: 14.6%
Upper class households in 2022: 29.8%
5-year change in upper class families: 104.11%
Kent, Washington
Total households in 2022: 45,699
Upper class families in 2017: 11.6%
Upper class households in 2022: 23.3%
5-year change in upper-class households: 100.86%
Pictured: Puget Sound, Washington
Lakewood, Colorado
Total households in 2022: 68,111
Upper class families in 2017: 10.9%
Upper class households in 2022: 21.8%
5-year change in upper-class households: 100%
Vallejo, California
Total households in 2022: 44,107
Upper class families in 2017: 11.9%
Upper class households in 2022: 23.7%
5-year change in upper-class households: 99.16%
Riverside, California
Total households in 2022: 90,540
Upper class households in 2017: 10.9%
Upper class households in 2022: 21.7%
5-year change in upper-class households: 99.08%
Arvada, Colorado
Total households in 2022: 50,211
Upper class families in 2017: 15.9%
Upper class households in 2022: 31.1%
5-year change in upper-class families: 95.60%
Garden Grove, California
Total households in 2022: 48,183
Upper class families in 2017: 12%
Upper class households in 2022: 23.4%
5-year change in upper-class families: 95%
Corona, California
Total households in 2022: 46,524
Upper class families in 2017: 15.4%
Upper class households in 2022: 29.9%
5-year change in upper-class families: 94.16%
Hayward, California
Total households in 2022: 49,542
Upper class families in 2017: 16.6%
Upper class households in 2022: 32.1%
5-year change in upper class families: 93.37%
Escondido, California
Total households in 2022: 51,288
Upper class households in 2017: 10.9%
Upper class households in 2022: 20.9%
5-year change in upper-class families: 91.74%
Beaverton, Oregon
Total households in 2022: 40,812
Upper class families in 2017: 12.9%
Upper class households in 2022: 24.7%
5-year change in upper class families: 91.47%
Peoria, Arizona
Total households in 2022: 71,733
Upper class families in 2017: 12.5%
Upper class households in 2022: 23.9%
5-year change in upper-class households: 91.20%
Meridian, Idaho
Total households in 2022: 42,843
Upper class families in 2017: 12%
Upper class households in 2022: 22.7%
5-year change in upper-class families: 89.17%
Pictured: Sawtooth National Forest, Idaho
Ventura, California
Total households in 2022: 41,954
Upper class families in 2017: 14.4%
Upper class households in 2022: 27.1%
5-year change in upper class families: 88.19%
Thornton, Colorado
Total households in 2022: 48,466
Upper class families in 2017: 12.7%
Upper class households in 2022: 23.8%
5-year change in upper class families: 87.40%
Pictured: Greeley, Colorado
Santa Rosa, California
Total households in 2022: 68,096
Upper class families in 2017: 14%
Upper class households in 2022: 26.1%
5-year change in upper class families: 86.43%
Oceanside, California
Total households in 2022: 61,636
Upper class families in 2017: 12.9%
Upper class households in 2022: 24%
5-year change in upper class families: 86.05%
Oxnard, California
Total households in 2022: 51,099
Upper class families in 2017: 11.9%
Upper class families in 2022: 22%
5-year change in upper-class families: 84.87%
Portland, Oregon
Total households in 2022: 283,896
Upper class families in 2017: 13.7%
Upper class households in 2022: 25.3%
5-year change in upper class families: 84.67%
Oakland, California
Total households in 2022: 170,282
Upper class families in 2017: 17.7%
Upper class families in 2022: 32.5%
5-year change in upper-class families: 83.62%
Chesapeake, Virginia
Total households in 2022: 91,368
Upper class families in 2017: 13.9%
Upper class families in 2022: 25.5%
5-year change in upper class families: 83.45%
Henderson, Nevada
Total households in 2022: 124,626
Upper class families in 2017: 13.2%
Upper class households in 2022: 24.2%
5-year change in upper class families: 83.33%
Anaheim, California
Total households in 2022: 104,671
Upper class families in 2017: 13.7%
Upper class households in 2022: 25.1%
5-year change in upper-class families: 83.21%