Being “rich” — or in the top 10% of household earners in the US — looks very different depending on your state.
Earning $200,000 a year in the state with the lowest threshold — West Virginia — means you are living large, according to a report from Visual Capitalist. Meanwhile, earning that same amount in Washington, DC — the area with the highest threshold — might mean you can barely pay your bills.
In general, a household needs to earn between $198,000 and $387,000 in annual income to be considered among the top 10% earners.
But the District of Columbia is an anomaly: To be considered rich here, you’d need to earn a whopping $635,000 yearly.
The top 10 states and DC where it takes the most money to be considered wealthy are, in order, the District of Columbia, Massachusetts, Connecticut, New Jersey, Washington, New York, Hawaii, Alaska, California, and Maryland (tied) and Rhode Island (tied).
Visual Capitalist used information from Germany-based tax platform BuchhaltungsButler and the Berlin-based data studio DataPulse Research, which crunched gross (pre-tax) household income numbers from the United States Census Bureau across all 50 states and the District of Columbia.
Being rich won’t necessarily buy your dream home
“Affordability differences are especially clear at the state level,” says Hannah Jones, senior economic research analyst at Realtor.com®. “In the nation’s most expensive housing markets, Hawaii, New York, California, and Massachusetts, a $200,000 income would make only about 50% to 55% of homes affordable.
“The Northeast, in particular, continues to see strong housing demand driven by several major economic hubs,” explains Jones. “Yet inventory has struggled to keep pace, largely due to years of limited new construction. As a result, home prices in the Northeast remain elevated compared with most other regions.”
“High income does not equal high buying power in luxury coastal Connecticut,” says Evangela Brock of Douglas Elliman, who’s based in Greenwich, CT.
Indeed, a $200,000 salary in No. 3-ranked Connecticut would make only about 73% of listings affordable—versus 96% in last-ranked West Virginia, according to Realtor.com data.
Brock notes that high-earning clients in the hedge fund, private equity, finance C-suite, medical, legal, and business worlds are still “price-sensitive” when home shopping in the costly Nutmeg State.
She attributes this to the state’s high taxes. A buyer needs to consider not only their mortgage payments but also their yearly property taxes
“A $3 million to $4 million home here is not unusual for a four-bedroom in a prime neighborhood, but annual taxes alone can exceed $40,000 to $70,000, depending on the town,” she explains.
As always, location matters.
Brock ticks off Greenwich, Darien, New Canaan, and Westport as the most coveted towns for high earners. Properties in these ritzy ZIP codes will cost you far more than in, say, Hartford or Bridgeport.
“At this level, it’s not just about income,” she says. “It’s about lifestyle, reputation, and long-term value.”
Libby McKinney-Tritschler, luxury properties specialist with Team AFA at William Raveis, notes that high-income earners in prime waterfront Connecticut “earn well above $200,000 to $250,000 annually, which creates a buyer pool that is financially strong but also incredibly discerning.”
Especially discerning are New York City commuters migrating to the bucolic state for a slower lifestyle, more community, better schools, and “long-term roots.”
Manhattan: Tough even for millionaires
A hefty salary might roll out the red carpet in Kansas, but Manhattan co-op boards aren’t so easily impressed. (New York is ranked No. 6.)
New York City co-op boards are notorious for rejecting deep-pocketed potential buyers despite all-cash offers. Influencer Livvy Dunne is the latest bold name to get a nope by a co-op board.
It’s not just that finicky co-op boards are legally allowed to reject applicants for any reason. The boards also want to see far more than a high salary.
“In New York City, it is not enough to have the money to purchase,” Lisa K. Lippman of Brown Harris Stevens explains to Realtor.com. “With cooperatives accounting for approximately 60% of our inventory, and 90% of the inventory near Central Park, buyers seeking a co-op often need to have multiples of the purchase price in order to be considered by the board.”
Lippman names the Upper East Side near Fifth Avenue (Billionaires’ Row), the West Village, and Tribeca as the most competitive neighborhoods — even for the rich.
Sonia I. Christian-Bendt of Berkshire Hathaway HomeServices New York Properties agrees that cash is king. A top salary won’t get you anywhere in certain Manhattan neighborhoods unless you’ve put a hefty percentage of it into your savings account.
“It is not just about the earnings, it is about liquidity,” she says. “For the high-priced co-ops in New York City, anywhere from 20% to 50% or even 100% is what boards look for in terms of cash to buy — plus a multiple of the purchase price in liquid assets.”
One of her clients, looking to buy a co-op on Sutton Place on the Upper East Side, was recently told she needed two years’ worth of monthly maintenance in cash at closing. High-end co-ops can easily have a monthly maintenance fee of $10,000 — so a buyer would need an additional $240,000 in savings to get approved.
Cara Ameer of Coldwell Banker notes that California (No. 9) is not any better than the East Coast, depending on the area.
“I have worked with couples where one is an educator and the other works in corporate, for example, and it’s challenging to find a home that meets their needs that isn’t a money pit,” she tells Realtor.com. “In Orange County, a $1.5 million price point may seem like it should buy a nice home, but it’s often something that needs work on some level.”
But don’t despair. If you’re not bringing in the big bucks, you can still live large in certain states, especially those below the Mason-Dixon Line.
The five states where it costs the least amount to be considered rich are, in order, West Virginia ($198,000), Mississippi ($200,900), Kentucky ($204,300), Arkansas ($206,000), and Oklahoma ($206,800).
District of Columbia
Annual salary needed to be considered rich: $635,000
Median home price: $540,000
“DC high earners who are determined to be in Georgetown are waiting for that opportunity and having a tough time with the very restricted inventory and competition going on,” Tracy Shively of Douglas Elliman tells Realtor.com.
Those who can’t get into that most elite neighborhood look to other hot spots: Kalorama, Woodland Normanstone (a small affluent enclave in Woodley Park), Wesley Heights, Kent, and Burleith in North Georgetown.
Massachusetts
Annual salary needed to be considered rich: $386,800
Median home price: $699,999
Connecticut
Annual salary needed to be considered rich: $344,400
Median home price: $480,000
New Jersey
Annual salary needed to be considered rich: $341,000
Median home price: $519,999
Washington
Annual salary needed to be considered rich: $330,800
Median home price: $600,000
New York
Annual salary needed to be considered rich: $327,400
Median home price: $649,000
Hawaii
Annual salary needed to be considered rich: $323,900
Median home price: $750,000
Alaska
Annual salary needed to be considered rich: $315,000
Median home price: $419,950
California
Annual salary needed to be considered rich: $314,700
Median home price: $698,000
Maryland (tied)
Annual salary needed to be considered rich: $311,000
Median home price: $399,999
Rhode Island (tied)
Annual salary needed to be considered rich: $311,000
Median home price: $540,000
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