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Cities Where Income Inequality Increased Most – 2025 Study

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Written by Jaclyn DeJohn, CFP®
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Most current estimates put the U.S. median household income at around $75,000 to $80,000. But these figures do not account for the degree of the spread between the highest and lowest earners, a metric that can demonstrate the diversity in financial realities within a community. Across the U.S., the top 20% of earners bring in at least $4.61 for every $1 that the bottom 20% of earners bring in. In some places, that multiple reaches over $7.

To find where this spread is increasing – and where it’s highest – SmartAsset ranked 96 of the largest U.S. cities based on the percentage increase in income inequality between the highest earners and lowest earners over one year.

Key Findings

  • Income inequality increased most in Madison, WI. Income spreads between the highest- and lowest-earning quintiles increased by 4.56% in Madison year over year. In 2024, the highest-earning households earned at least $4.30 for every dollar brought in by the lowest-earning households. This is up from $4.24 in 2023. Madison’s median household income increased from $77,653 to $85,189 in that same timeframe.
  • High earners make nearly 8x the lowest earners in this city. New Orleans, LA has the highest income inequality with a $7.91 multiple on earnings between the top 20% and bottom 20% of households. This stayed fairly constant year over year with just a 0.4% increase in the spread.
  • Income inequality is lowest in Boise, ID. The highest-earning households in Boise earn at least $3.90 for every dollar earned by the lowest quintile of earners. The spread decreased slightly year over year, by -0.9%. Chesapeake, VA has the second lowest income inequality with $3.95 multiple, and saw the third highest increase year over year at 4.4%.
  • Income inequality decreased by 11.2% in Richmond, VA. Richmond saw about three times as much deceleration in income inequality as the nextmost city (Laredo, TX). The highest earners went from earning at least $4.56 per every dollar earned by the lowest 20% of earners in 2023, to a spread of $4.04 in 2024.

Top 10 Cities Where Income Inequality Increased Most Over One Year

Cities are ranked based on the percentage change in the ratio between the earnings threshold for the top 20% of earners and the bottom 20% of earners.

  1. Madison, WI
    • Percent change in spread of income: 4.56%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.30
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.11
    • Median household income, 2024: $85,189
    • Median household income, 2023: $77,653
  2. Chesapeake, VA
    • Percent change in spread of income: 4.41%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $3.95
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $3.78
    • Median household income, 2024: $87,127
    • Median household income, 2023: $87,057
  3. Oakland, CA
    • Percent change in spread of income: 3.24%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.41
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.24
    • Median household income, 2024: $121,190
    • Median household income, 2023: $108,971
  4. Fremont, CA(Tied with Oakland, CA)
    • Percent change in spread of income: 3.24%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.41
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.24
    • Median household income, 2024: $121,190
    • Median household income, 2023: $108,971
  5. Austin, TX
    • Percent change in spread of income: 3.03%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.48
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.35
    • Median household income, 2024: $68,630
    • Median household income, 2023: $68,150
  6. Omaha, NE
    • Percent change in spread of income: 2.85%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.51
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.38
    • Median household income, 2024: $74,424
    • Median household income, 2023: $69,475
  7. Denver, CO
    • Percent change in spread of income: 2.35%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.89
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.77
    • Median household income, 2024: $87,619
    • Median household income, 2023: $81,262
  8. Baltimore, MD
    • Percent change in spread of income: 2.18%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.40
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.30
    • Median household income, 2024: $86,198
    • Median household income, 2023: $80,159
  9. Bakersfield, CA
    • Percent change in spread of income: 2.13%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.96
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $4.85
    • Median household income, 2024: $65,981
    • Median household income, 2023: $57,926
  10. Aurora, CO
    • Percent change in spread of income: 1.98%
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $4.05
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $3.97
    • Median household income, 2024: $93,525
    • Median household income, 2023: $84,308

Top 10 Cities With the Highest Income Inequality

  1. New Orleans, LA
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $7.91
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $7.87
    • Percent change in spread of income: 0.45%
    • Median household income, 2024: $51,913
    • Median household income, 2023: $46,188
  2. Boston, MA
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $7.70
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $7.81
    • Percent change in spread of income: -1.31%
    • Median household income, 2024: $84,548
    • Median household income, 2023: $77,163
  3. Newark, NJ
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $6.79
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $6.80
    • Percent change in spread of income: -0.21%
    • Median household income, 2024: $74,747
    • Median household income, 2023: $66,191
  4. Philadelphia, PA
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $6.29
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $6.33
    • Percent change in spread of income: -0.58%
    • Median household income, 2024: $56,385
    • Median household income, 2023: $62,620
  5. Jersey City, NJ
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $6.01
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $6.09
    • Percent change in spread of income: -1.24%
    • Median household income, 2024: $82,361
    • Median household income, 2023: $79,159
  6. New York, NY
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.80
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.77
    • Percent change in spread of income: 0.53%
    • Median household income, 2024: $79,463
    • Median household income, 2023: $74,230
  7. Atlanta, GA
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.76
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.79
    • Percent change in spread of income: -0.46%
    • Median household income, 2024: $89,798
    • Median household income, 2023: $82,820
  8. Detroit, MI
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.56
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.51
    • Percent change in spread of income: 0.91%
    • Median household income, 2024: $55,928
    • Median household income, 2023: $52,644
  9. Chicago, IL
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.50
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.47
    • Percent change in spread of income: 0.39%
    • Median household income, 2024: $76,614
    • Median household income, 2023: $72,063
  10. Memphis, TN
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2024: $5.47
    • Ratio of earnings threshold for top 20% versus bottom 20%, 2023: $5.57
    • Percent change in spread of income: -1.74%
    • Median household income, 2024: $61,452
    • Median household income, 2023: $54,931

Data and Methodology

Cities were ranked by the ratio of household income at the 80th percentile to those of the 20th percentile. Data is from County Health Rankings & Roadmaps for 2024 at the county level. Data for 96 of the largest cities was based on U.S. Census Bureau population estimates for 2023 was included based on availability.

Questions about this study? Contact us at press@smartasset.com

Photo credit: ©iStock.com/halbergman