Residents of San Francisco need to have a
of $1.7 million to be “financially comfortable,” according to a survey of 750 locals in Charles Schwab’s Modern Wealth Survey 2022.
It puts the tech hub at the top of the list for American cities with the highest wealth threshold.
Runners-up included New York City which requires $1.4 million, southern California with $1.3 million, and Washington, DC at $1.1 million.
But to be considered “wealthy” in the Bay Area is an even greater jump: surveyed residents estimated a required average net worth of $5.1 million. That’s compared to an estimated national average of $2.2 million, according to a polled sample of 1,000 American adults designed to represent the country.
The national threshold for financial comfort still hasn’t recovered from a pandemic drop despite rising inflation and cost of living, according to Charles Schwab’s data.
The average net worth required to be “financially comfortable” was as high as $1.4 million in 2018 and fell to $624,000 in 2021 before creeping back up to $774,000 this year.
The cost of living continues to rise across the country. Last month, inflation rates hit a 40-year high of 8.6%, as rising prices of shelter, gas, and food collided.
Living in the Bay Area is notoriously expensive and has driven many residents to flock to buzzing tech hubs elsewhere in the US, including Phoenix, Arizona; Miami, Florida; and Austin, Texas.
Median rent in San Francisco for a one-bedroom apartment is now $3,000, according to real estate website Zumper. San Francisco is no longer the most expensive city for rent, however, with Zumper reporting that a New York City apartment costs an average of $3,600 per month.