To join the top 1% of earners in the United States, Americans must bring home almost $800,000 annually.
However, the income required varies significantly depending on where you live.
For example, in Washington, DC, residents must earn a whopping $1.22 million to join the 1%.
At the same time, the threshold is much lower in states like West Virginia, at $426,000.
Here’s a breakdown of the U.S. states with the highest and lowest income thresholds to enter the 1% club:
Here’s a breakdown of the U.S. states with the highest and lowest income thresholds to enter the 1% club:
| State/District | 1% Threshold | Top 1% List Price | Median List Price |
|---|---|---|---|
| Washington, DC | $1,220,000 | $5,836,500 | $599,000 |
| Connecticut | $1,170,000 | $4,117,966 | $625,000 |
| Massachusetts | $1,130,000 | $9,961,655 | $699,900 |
| California | $1,050,000 | $10,023,903 | $727,000 |
| Washington | $1,000,000 | $6,667,726 | $439,900 |
| West Virginia | $426,000 | $1,375,000 | $249,900 |
| Mississippi | $446,370 | $1,428,100 | $280,000 |
| New Mexico | $482,270 | $2,996,125 | $375,318 |
| Kentucky | $520,420 | $1,597,851 | $289,900 |
| Arkansas | $538,470 | $1,906,890 | $289,900 |
Key Insights:
- Highest Thresholds to 1%:
- Washington, DC, has the highest threshold to join the top 1% at $1.22 million, followed by Connecticut and Massachusetts with thresholds of $1.17 million and $1.13 million, respectively. These regions also tend to have the highest median home prices.
- Lowest Thresholds to 1%:
- On the other hand, residents of West Virginia need to earn just $426,000 to be in the top 1%, making it the state with the lowest threshold. Mississippi and New Mexico follow with thresholds of $446,370 and $482,270, respectively.
Factors Influencing the Disparity:
Local economic factors such as job opportunities and wealth concentration influence the significant disparity between the top and bottom states.
Regions with higher earners naturally experience higher demand for real estate, driving up property prices.
Conversely, areas with lower earners tend to have more affordable housing markets.
For example, in Washington, DC, the top 1% of homes are priced at an average of $5.83 million.
In contrast, in West Virginia, the most expensive homes in the 1% are priced around $1.37 million.
These differences in home prices reflect the stark contrasts in income levels across the country.
Takeaway:
The income required to join the 1% varies significantly across the U.S., with factors like economic opportunities and local real estate markets playing a significant role in setting those thresholds.
Higher-earning states are home to some of the most expensive real estate markets.
At the same time, states with lower thresholds for the 1% also feature more affordable housing options.