The net worth you need to be considered rich in 12 major US cities

The magic number Americans consider necessary to be considered wealthy has risen significantly over the past year.

According to Americans, a net worth of at least $2.5 million is needed to feel rich. a recent study by Charles Schwab.

The amount is up significantly from $2.2 million a year ago.

A person’s net worth is calculated by adding together all of their assets, such as a home and savings, and subtracting their debts, such as credit card debt or a mortgage.

Still, for residents of some of the largest and most expensive cities in the US, $2.5 million may still not be enough to be considered wealthy.

New York City, one of the most expensive cities in the US, requires a net worth of $2.9 million

Southern California resident said $3.4 million in net worth would make resident rich

According to San Francisco residents, it takes a staggering $4.4 million to feel rich.

Only 16 percent of San Francisco residents surveyed believe they have their finances in order.

Most said the city’s sky-high home prices and high cost of living were the biggest barriers to building wealth.

For people living in Southern California, including the notoriously expensive cities of Los Angeles and San Diego, a net worth of $3.4 million was cited as the entry-level requirement for wealth.

East Coast cities like New York, Boston and Washington, D.C., all needed more than an average of $2.4 million, with residents reporting needs ranging from $2.7 million to $2.9 million.

Homeowners who have been looking for a home for a while may have seen a significant increase in their wealth in recent years, due to rapid price increases since the pandemic.

There are now more homes in the US worth $1 million than ever before.

After a decade of ultra-low interest rates, slow house building and the lockdown-induced “race for space”, house prices have soared.

However, recent increases in mortgage rates over the past 18 months have not led to lower demand, as there have been historically few homes available, which has only pushed prices higher.

So much so that almost 1 in 10 homes in the country is now worth $1 million or more.

Still, the salary required to be considered “rich” has increased in every state over the past five years.

According to data, the definition of rich has changed the most in Washington state. Americans there now need to earn $544,518 to be among the richest people, up from $378,374.

The personal finance website defined “rich” as people who are in the top 5 percent of wealthiest earners in each state.

To fall into this category, workers in 12 U.S. states must earn a salary of more than $500,000, the study found, as household purchasing power has declined.

Nevada saw the second-largest jump over the period, up 40.41 percent from $320,403 in 2017 to $449,872 in 2022.

Las Vegas residents say they’ve been priced out of the once-affordable city as wealthy Californians have moved en masse to Nevada, driving up home prices.