California is known for a lot of things, including sunshine, beaches and Hollywood, but it is also home to seven of the 10 wealthiest cities in the U.S., according to U.S. News & World Report. However, it's not because of movie stars and movie producers.
Instead, technology companies are the main contributor to the state's wealth. In fact, all seven of the California cities are located either near or in the heart of Silicon Valley, a region with multiple tech firms.
Other cities on the top 10 list also relied on technology firms to some extent, but also derived economic strength from other industries, such as large universities, hospitals and prisons, according to the report.
The ranking was based on U.S. Census Bureau data, which has found a widening gap between earners in the 90th percentile, whoc make an average of $211.956, and those in the 10th percentile, whose annual earnings average $15,660.
"In each of the 10 wealthiest places included in Census Bureau figures—many of which are suburbs of larger cities across California and the West Coast—the average household income lies between the nation’s 80th and 90th percentiles, with average earnings above $150,000 per year," the report stated.
The following are the wealthiest cities in the country by median household income, according to U.S. News & World Report:
10. Fremont, Calif.
This eastern Bay Area city is near several Silicon Valley businesses. With a median household income of $155,968, the city boasts a population of about 230,504, according to census. The city is the fourth largest in the San Francisco Bay area, according to the city’s website. Almost 70% of the city's residents have a household income greater than $100,000, the census said.
9. Sunnyvale, Calif.
Another city in the Silicon Valley region, Sunnyvale combines a comprehensive and thriving business plan with 772 acres of parkland, according to the city’s website. The city's median household income is $156,059, and just under 68% of its residents have household incomes higher than $100,000, according to the census. It is the second-largest city in Santa Clara County, with a population of 155,805, according to census data.
8. Mountain View, Calif.
The birthplace of the silicon semiconductor, Mountain View is a hub for technology firms in the Silicon Valley area. The city has a median household income of $157,243, while just over 70% of the residents have a household income higher than $100,000, according to census data. A primary reason for the amount of wealth in this community is that most residents work at one of the nearby tech companies. According to the city's annual comprehensive financial report, Google hires the most, followed by El Camino Hospital. Intuit and Microsoft are also big employers in the area.
7. San Ramon, Calif.
Thirty-five miles east of San Francisco, San Ramon offers an excellent school system along with suburban charm surrounded and scenic beauty. Its about 79,000 population puts it in the top five of the largest cities in the county, according to the census. With major businesses in the area, the median household income is $162,388, and the percentage of residents with household income higher than $100,000 is 73.3%.
6. Bethesda, Md.
Bethesda, only a few miles from Washington, D.C., and has a median household income of $167,162. The percentage of residents with household income higher than $100,000 is 67.4%, according to census data. While politics is a main driving force of the city, it also has its share of culture, complete with several ethnic restaurants and Bethesda’s arts and entertainment district, where visitors can find their fair share of jazz clubs, art exhibits, and other sites.
5. Milpitas, Calif.
This city calls itself “the Crossroads to Silicon Valley,” according to its website. Milpitas residents have a median household income of $169,460; slightly more than 72% of the residents have a household income higher than $100,000, according to census data. Corporations and factories are the major employers in the city, whose roots are agricultural. Cisco Systems and KLA are the two largest employers in the city, with more than 3,000 and 2,000 employees, respectively, according to the city’s website.
4. Newton, Mass.
Newton, seven miles west of Boston, has a population of just under 89,000 resides within about 18 square miles, according to the city. Newton can date its origins to the 1600s, and it consists of 13 villages but does not have a city center. Almost 20% of its overall land area is dedicated to open space, with the city in control of more than half of that,, according to the city's website. The median household income for the community is $183,208, with 70.7% of the residents having household income higher than $100,000, according to census data.
3. Palo Alto, Calif.
Palo Alto is known as the “Birthplace of Silicon Valley,” and several major corporations call it their headquarters, including Tesla, VMware and Hewlett-Packard. It is one of the few cities in California to earn a "AAA" bond rating, according to the city. In total, there are about 98,000 jobs in the city among 7,000 businesses, the city says. The city is home to Stanford University, along with Stanford University Medical Center. The median household income is $195,781 and the percentage of residents with a household income greater than $100,000 is 70.9%, the census said.
2. Sammamish, Wash.
The city is 20 miles east of Seattle, and is considered part of that city's metropolitan area. The area is well-known for its technology industry, which began with Boeing and Microsoft and has grown to include companies such as Amazon and Expedia. Sammamish has a median household income of $201,370 and just under 80% of all the residents have a household income that is higher than $100,000, according to census data.
1. Dublin, Calif.
The wealthiest city benefits from its proximity to Silicon Valley and its location 35 miles east of downtown San Francisco. It is consistently one of the fastest-growing cities in Alameda County, according to the California Department of Finance. The 15 square mile city, which has about 72,589 residents, boasts a median household income of $205,219, according to census data. The three biggest employers in the city are the U.S. government; the County of Alameda; and the Dublin Unified School District. The percentage of residents with a household income higher than $100,000 is 77.5%, and the city has an unemployment rate of less than 4%.
The full report can be viewed here.
