People With High Incomes Can Best Build Wealth In San Francisco

The city boasts a healthy job market, high-paying jobs, and surging property values

October 25, 2016

Factoring in savable income, human capital, debt burden, homeownership benefits, and access to financial services, cities like Minneapolis, St. Louis, and Detroit are great places for high-income earners to build their wealth.

A study from Bankrate says that San Francisco is the best big city in America for improving a person's net worth. Despite extremely expensive rent rates and housing costs, San Francisco’s surging property values, healthy job market, and soaring paychecks makes it the city with the lowest debt burden. The Bay Area isn’t for everyone, particularly those with lower-paying jobs and those who don’t own property.

You'll want to tailor your approach to wealth-building to your area. If home values are so high where you live that homeownership in the near term is out of the question, it may make sense to put more money into a tax-advantaged retirement account. If it's hard to find an employer who offers a work-based retirement plan, opening your own IRA and saving that way may make the most sense.

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