America’s wealth is becoming more concentrated, creating divides that reflect—and deepen—economic and social inequality. A new study from the University of Toronto offers a detailed picture of how wealth is distributed across the United States and how it has changed since 1960. The findings paint a stark picture of a country where the richest communities are pulling further ahead, leaving poorer areas struggling to keep up.
The study introduces GEOWEALTH-US, a model that uses census data and machine learning to map wealth across regions. Wealth is defined as a household’s assets, such as real estate and stocks, minus its debts, including mortgages and credit cards. The data reveal an alarming trend: the richest cities in America are now nearly seven times wealthier than the poorest. This disparity has almost doubled since 1960.
Wealth on the Coasts, Debt in the Heartland
The wealthiest communities, such as Palo Alto, California, and Nassau County, New York, boast median household net worths of nearly $1.7 million. Meanwhile, in poorer neighborhoods like parts of the Bronx, Houston, and Milwaukee, median assets hover around $18,000, with many households burdened by debt. These wealth gaps are mirrored across regions, with the coasts surging ahead while parts of the South and Midwest, reliant on declining industries, fall further behind.
Even within cities, wealth is unevenly shared. In San Jose and Santa Monica, the richest 10% hold seven times more wealth than the median household. By contrast, in places like Utah and Minnesota, the gap is closer to threefold. Coastal affluence is not only greater but also more concentrated.
Divides That Span Generations
Wealth matters more than income. It provides security, shapes opportunities, and builds advantages that last for generations. Wealthier communities enjoy better schools, infrastructure, and public services, funded by higher property taxes and philanthropy. Poorer areas, by contrast, struggle to provide the basics, leaving their residents with fewer chances to succeed.
The researchers note that children from wealthier neighborhoods often benefit even if their own families are not rich. Better schools and infrastructure can improve social mobility, but only for those lucky enough to grow up there. Wealth also shapes health outcomes; poorer households face higher risks of illness and shorter lifespans.
The Roots of Inequality
Since 1960, the wealth gap has grown faster than the income gap, driven by shifting economic trends. Tech and finance hubs like San Francisco and Seattle have seen soaring wealth, while industrial cities like Cleveland, once thriving, have declined. In 1960, Cleveland ranked among the wealthiest U.S. cities; by 2020, it had fallen to 466th out of 722 communities studied.
Inequality also reflects racial divides. In diverse but segregated areas, white households dominate the top tiers of wealth, while Black, Hispanic, and other minority groups disproportionately populate the bottom.
What Lies Ahead
Several factors contribute to these trends, including the concentration of high-paying jobs in cities and rising property values in booming areas. Federal tax policies that favor the affluent exacerbate the problem. Without reform, inequality is likely to grow, eroding trust in institutions and threatening America’s democratic ideals.
If the current trajectory continues, the wealth divide will only deepen, making the promise of equal opportunity an ever-distant dream.
