U.S. median household income increased in 2014 to $53,657, an increase of roughly $600 from the previous year. Still, U.S. incomes have yet to recover to pre-recession levels. Adjusting for inflation, U.S. 2014 median income was still below its 2009 level.

Periods of recession and economic boom have an impact on the overall wealth of a country, as well as on metropolitan areas — although to varying degrees. In most cases, the impact does not change the relative wealth of a metropolitan area, especially of the most affluent and extremely impoverished metropolitan areas. People living in Brownsville-Harlingen, Texas, where the typical household earns $32,093 a year, likely have a considerably different life from those living in San Jose, California, where the median household income is approximately three times that of Brownsville’s. 24/7 Wall St. reviewed the wealthiest and poorest cities in the U.S.

Income and poverty levels, although not always perfectly correlated, are closely related. The federal poverty threshold — $11,770 for a single individual — is based on the income necessary to sustain a household, and depends on the age of the home owner, the family size, and the number of children. As a result, poverty tends to be more prevalent in places with exceptionally low incomes. Notably, the poverty rates in all 25 poorest metro areas exceeds the national poverty rate of 15.5%. More than 35% of residents in Brownsville-Harlingen, for example, live in poverty, the highest poverty rate nationwide.

Click here to see the richest cities in America.
Click here to see the poorest cities in America.

An area’s labor market can be a significant factor in determining incomes. A lower unemployment rate is often a sign of a healthy, competitive job market. Not only are more people employed, but also workers are more likely to be better paid. In addition, the more occupants in a household who are able to bring in income, the higher that region’s wealth will be. Of the 25 wealthiest metropolitan areas, the unemployment rates in 19 are equal to or lower than the national rate. All but one of the 25 poorest areas have higher than average jobless rates.

In an interview with 24/7 Wall St. Charles Varner, associate director at Stanford University’s Center on Poverty and Inequality, explained that while employment is an important component in determining the affluence of a given area, how people are employed is likely just as important. In many of the country’s wealthiest metro areas, Varner observed, a high share of employees work technology and finance positions. Indeed, in the majority of the high-wealth metro areas — such as the Washington D.C. region, the San Francisco Bay Area, and San Jose — a very high share of workers are employed in professional and scientific positions, which tend to pay better than many other industries.

Another trend clearly differentiating the wealthiest and the poorest areas in the country, explained Varner, the general education levels of area residents. Nationally, 30.1% of adults have at least a bachelor’s degree. Only one of the poorest metro areas has a higher share of adults with similar education. And cities such as Pine Bluff, Arkansas and Lake Havasu, Arizona, have less than half the national proportion. The levels of education, like the type of jobs available, is indicative of the region’s economy. “[The wealthiest] areas have a high concentration of educated people, because of the presence of universities and — more importantly — the jobs that are there,” Varner said.

In addition to wealthier areas mostly having better educated residents, employment, poverty, and income, property values in these areas are considerably higher. This is perhaps indicative of the fact that, in general, these are the most desirable places to live. These kinds of economies, Varner explained, are structured to support and perpetuate wealth. “It is very beneficial to be in these areas if you are affluent. The [affluent] need to be near these production centers, to generate that kind of income or wealth.”

To determine America’s richest and poorest cities. 24/7 Wall St. reviewed data from the U.S. Census Bureau’s 2014 American Community Survey (ACS). We identified the 25 U.S. metropolitan statistical areas (MSAs) with the lowest median household incomes, and the 25 highest for that year. Median income data for all previous years is adjusted for inflation in 2014 dollars. We also reviewed figures on poverty, home values, and income distribution, and educational attainment from the Census Bureau’s ACS, as well as annual average unemployment rates from the Bureau of Labor Statistics, as of August, 2015. Figures on gross domestic product for metro areas, called gross metropolitan product (GMP), are for 2014 and are from the Bureau of Economic Analysis.

These are America’s richest and poorest cities.

America’s Richest Cities

25. Rochester, MN
> Median household income: $66,214
> Median home value: $170,200
> Unemployment rate: 2.9%
> Poverty rate: 9.5%

The Rochester, Minnesota metro area’s median income is among the highest in the United States. A typical household in the metro area earns $66,214 annually, compared to a national median of $53,657. As is often the case in areas with extremely high income, poverty is very minimal in the metro area. Just 9.5% of the city’s population lives below the poverty line, much lower than the national poverty rate of 15.5%. Low unemployment often results in greater wealth in an area, both because more residents are earning incomes, and because employers tend to offer more competitive wages to attract the best employees. In Rochester, just 2.9% of the region’s workforce is unemployed, compared to a national jobless rate of 5.1%. A very large share of the region’s residents is employed by the Mayo Clinic.

24. Denver-Aurora-Lakewood, CO
> Median household income: $66,870
> Median home value: $276,800
> Unemployment rate: 3.6%
> Poverty rate: 10.8%

A typical household in the Denver area earns $66,870 annually, more than $13,000 above the national median household income. In general, higher-paying occupations tend to require a college education. As is the case with many metropolitan areas with higher incomes, more than 40% of Denver area adults have a college education, more than 10 percentage points higher than the 30.1% of adults who have at least a bachelor’s degree nationwide. Employment can have a significant impact on an area’s income. Just 3.6% of the The Denver metropolitan area’s workforce is unemployed, compared to a national rate of 5.1%.

23. Kahului-Wailuku-Lahaina, HI
> Median household income: $66,987
> Median home value: $534,300
> Unemployment rate: 3.4%
> Poverty rate: 13.2%

Property values in a region are often indicative of highly desirable — and highly affluent — housing markets. The Kahului-Wailuku-Lahaina metro area is no exception. The typical home in the Hawaii metro region, located on the islands of Maui, Lanai, and Moloka’i, is $534,300 — nearly three times the national median home value and higher than all but four other U.S. metropolitan areas. The area’s median income is among the highest in the United States. Low unemployment often results in greater wealth in an area — both because more residents are earning incomes, and because employers tend to offer more competitive wages to attract the best employees. Just 3.4% of the region’s workforce is unemployed, significantly lower than the national rate of 5.1%.

22. New York-Newark-Jersey City, NY-NJ-PA
> Median household income: $67,066
> Median home value: $396,700
> Unemployment rate: 5.1%
> Poverty rate: 14.6%

The Greater New York metropolitan area, which includes parts of New Jersey and Pennsylvania, has a population of nearly 20 million people. While the region includes some areas of extreme poverty, it still has — on the whole — a higher median household income than the vast majority of U.S. metropolitan areas. A typical metro area household earns $67,066 annually compared to a national median of $53,657. While all metropolitan areas have at least a few households earning very high incomes, the wealthiest metropolitan areas have disproportionately high shares of very wealthy households. In the New York metro area, 10.4% of households earn $200,000 or more each year, nearly double the 5.3% of households earnings as much nationwide.

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