The nation's largest cities have followed a similar pattern. Income for most of the 366 metropolitan areas measured by the U.S. Census Bureau are flat in the last year, and many are still down significantly compared to 2008. According to the Census Bureau, Brownsville, Texas replaced McAllen, Texas, as the country's poorest metro area. San Jose, Calif. took the top spot as the wealthiest metro area, replacing Washington, D.C. 24/7 Wall St. reviewed the metropolitan areas with the highest and lowest median incomes in the U.S.
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While income levels and poverty rates are not identical measures, low income and high poverty tend to go hand in hand. All 10 of the poorest metropolitan areas have higher percentages of residents living below the poverty rate, compared to the national figure of 15.9%. In Brownsville, the poverty rate is more than 36%, the highest in the nation.
According to Brookings Institution fellow Elizabeth Kneebone, one of the key determinants of income levels in a city are the kinds of jobs available. This includes jobs in technology, finance, high-skill manufacturing and professional services. Indeed, the wealthiest metropolitan areas have among the highest concentrations of these types of jobs.
Nationally, 10.9% of the population is employed in professional services like scientific and management roles. In places like Washington, D.C., and San Jose, it is much closer to 20% of the population. The low-income cities have far fewer residents in these occupations.
At least due in part to this, low income areas tend to have a much smaller percentage of residents with post-se! condary education. Nationally, just under 30% of the adult population has at least a bachelor's degree. In poorer places like Dalton, Ga., and Lake Havasu, Ariz., barely one in 10 adults have a bachelor's degree. Conversely, in each of the five wealthiest metro areas, the rate is well over 40%.
For the wealthy cities, Kneebone explained, "It's like a virtuous cycle: wealthier cities high have the industry and the jobs that attract highly educated workers, and if you have a highly educated workforce, you can attract those types of jobs into the region." Residents in the poorest cities face the opposite situation.
In the poorest areas, residents are much more likely to be employed in occupations that are low-skill, low-pay and require only modest education.
Not all agree that self-perpetuating poverty is a problem in these cities. Dr. Richard Burkhauser, a professor of public policy at Cornell University, explained that people are always able to leave these places. "It's certainly true that if you don't move around, your chance of getting out of poverty is much tougher than if you move." However, a major theme in American history is that generations leave poor places and find jobs elsewhere, explained Burkhauser.
While income has not improved significantly in most of the nation's metropolitan areas, there are exceptions. Notably, San Jose's median household income grew by roughly $5,000 in a single year. Brookings senior research analyst and associate fellow Alec Friedhoff noted that the city's improvement isn't surprising considering it is one of most tech-heavy metro areas in the country. "High tech areas have really bounced back quickly, and San Jose was the one that bounced back the fastest," he noted.
Based on data from the U.S. Census Bureau's 2012 American Community Survey (ACS), 24/7 Wall St. identified the U.S. metropolitan statistical areas (MSAs) with the highest and lowest median household incomes. Based on Census Bureau treatment, median household income for all ! previous ! years is adjusted for inflation. We considered poverty, median home value and health insurance from the Census Bureau's ACS. We also reviewed unemployment data provided by the Bureau of Labor Statistics. Unemployment rates listed are full-year averages for 2012 and not monthly rates. All ranks are out of the 366 U.S. metropolitan areas measured in the ACS, except for unemployment rates, which are out of 372 areas measured by the BLS.
These are America's richest -- and poorest -- cities.
AMERICA'S RICHEST CITIES
3. Bridgeport-Stamford-Norwalk, Conn.
> Median household income: $79,841
> Population: 933,835 (57th highest)
> Unemployment rate: 7.8% (tied-167th highest)
> Poverty rate: 8.9% (tied-8th lowest)
As of 2012, the Bridgeport metro area had one of the highest median incomes in the nation, at close to $80,000. Additionally, nearly 22% of the area's households made over $200,000, the highest percentage in the nation. Contributing to the Bridgeport area's wealth, the percentage of residents working in the high-paying finance and professional services sectors were among the highest in the nation last year. But the area also had the nation's second-highest income inequality, as measured by its Gini index score. While crime and poverty have long been problems in Bridgeport, neighboring cities such as Greenwich are home to some of the nation's wealthiest individuals.
2. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
> Median household income: $88,233
> Population: 5,804,333 (7th highest)
> Unemployment rate: 5.6% (46th lowest)
> Poverty rate: 8.4% (4th lowest)
Last year, 17% of households in the Washington, D.C., area had over $200,000 in income, higher than all but two other metro areas. Among the reasons for the area's high income are a highly skilled workforce, with more than one in every five workers employed in high-paying professional services fields, more than anywhere else in the U.S. In May, The Wall Str! eet Journ! al noted the area's economy has expanded beyond government in recent years, and that past federal spending has contributed to the development of a skilled and well-connected professional workforce. Additionally, the Washington, D.C., area population is one of the nation's most highly educated, with 48.2% of residents holding at least a bachelor's degree, more than all but a handful of other metro areas.
1. San Jose-Sunnyvale-Santa Clara, Calif.
> Median household income: $90,737
> Population: 1,894,388 (32nd highest)
> Unemployment rate: 8.6% (112th highest)
> Poverty rate: 10.8% (28th lowest)
Median income in the San Jose metro area, which constitutes part of Silicon Valley, jumped from $85,736 in 2011 to $90,737 last year. San Jose had among the largest concentrations of high-paying professional services and information jobs in the nation. But the area is not only the wealthiest in the nation, it has also become one of the most-desired housing markets. Just 3.6% of housing units were vacant in 2012, down from 4.9% in 2008, while median gross rent reached $1,560 last year, more than any other metro area in the U.S. Home values also were the highest in the nation, with a median of $624,200. More than 20% of homes in the area were valued at over $1 million.
MORE: For the rest of the 10 richest states, go to 24/7 Wall St.
AMERICA'S POOREST CITIES
3. McAllen-Edinburg-Mission, Texas
> Median household income: $33,761
> Population: 806,552 (67th highest)
> Unemployment rate: 11.0% (28th highest)
> Poverty rate: 34.5% (2nd highest)
As of 2012, 34.5% of McAllen area residents lived below the poverty line, the second highest percentage in the nation and more than double the national rate of 15.9%. The area also had the nation's highest percentage of residents without health insurance, at nearly 37%. In 2009, McAllen became a focal point in the national health care debate, due to the area's extremely high medical costs, in! spite of! its poor population. However, health care is not the only vital service many residents lack. In 2012, more than 2% of housing units did not have complete plumbing facilities, one of the worst rates in the nation. Finding work was also difficult for many residents, less than 64% of whom had a high school education as of 2012, one of the lowest rates in the nation. Despite decent job growth, the area's unemployment rate was 11% last year.
2. Dalton, Ga.
> Median household income: $32,858
> Population: 142,751 (87th lowest)
> Unemployment rate: 11.5% (20th highest)
> Poverty rate: 21.6% (46th highest)
No metro area in the U.S. has a higher percentage of workers employed in manufacturing than Dalton, at over 40% last year. The major source of these jobs is the area's carpet industry — the city of Dalton bills itself as "The Carpet Capital of the Word." The industry took a hit as the housing market flopped, however, and a large portion of the area's manufacturing jobs were lost. As of last year, the area's unemployment rate was 11.5%, one of the highest in the nation. Between 2008 and 2012, median household income fell from $44,847 to less than $33,000. But there has been some good news lately. According to the Chattanooga Times Free Press, the Dalton area's largest carpet manufacturer, Shaw Industries, announced plans to add a new factory and hire more workers as the economy improves.
1. Brownsville-Harlingen, Texas
> Median household income: $30,953
> Population: 415,557 (125th highest)
> Unemployment rate: 10.5% (37th highest)
> Poverty rate: 36.10% (the highest)
Nearly two out of five Brownsville-Harlingen residents were living in poverty as of 2012, the highest rate of the 366 metropolitan areas reviewed. According to PewResearch, Brownsville had one of the largest Hispanic populations in 2012, and the highest rate of poverty among Hispanics in large metropolitan areas, at 40%. Additionally, more than one in three people we! re living! without health insurance that year, the second highest rate in the U.S.. Home values were also low in 2012. Over 26% of homes were worth less than $50,000, about three times more than the median for the U.S., and one of the highest percentages of low-valued homes out of all metropolitan areas.
MORE: For the rest of the 10 poorest states, go to 24/7 Wall St.
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