When and where in all of world history has a prosperous nation had its 0.2% richest elite a mere 3 times wealthier than the 99.8% average of the rest of said nation?!
Posted on 04/04/2005 2:17:10 PM PDT by anniegetyourgun
Population Migrates Inward but Big Money Hugs the Coasts
NEW YORK (AdAge.com) -- If you want to follow the money, get on a plane. Forty-five of the nation’s 50 most affluent ZIP codes hug the East and West coasts. Fly-over Land has just three, on the North Shore of Chicago. Atlanta’s Buckhead is the South’s sole outpost in this rich territory. The sun spot of Paradise Valley, Ariz., rounds out the list.
The nation is moving south and west -- population center point is now southern Missouri -- but the Northeast is still the money belt. Metropolitan New York is home to nearly half -- 24 -- of the ritzy 50 ZIPs. Add in Boston (five), Philadelphia’s Main Line (two) and suburban Washington (one), and the Northeast corridor accounts for 32 of the most-prized ZIP codes, according to data compiled for Advertising Age’s American Demographics by ESRI, a supplier of geographic information-systems software and data.
Elite households The 50 ZIPs are home to 201,799 households and 565,125 residents. This elite group -- just 0.2% of the U.S. population -- last year had an average household income of $294,000, four times the national average ($67,572), and average net worth of $1.2 million, about three times the national figure ($468,970), according to American Demographics’ analysis of ESRI data. The top 10 ZIPs, from No. 1 Atherton, Calif., to Old Westbury, N.Y., are all on the coasts.
ESRI ranked ZIP codes based on a formula including such demographic variables as average household income and average net worth. Surging home prices on the coasts have boosted the net worth of households in those regions. But coastal communities also pay better; the coasts are home to nine of the 10 ZIPs with highest household income. (The 10th, Kenilworth, Ill., at least is on the coast of Lake Michigan.)
ESRI found six affluent ZIPs in San Francisco and Silicon Valley, which together form the money center of the West. Los Angeles has just four. Its most celebrated address, Beverly Hills 90210, came in a distant No. 35 nationally, reflecting in part that the ZIP is home to both glitzy houses and not-so-ritzy apartments. Beverly Hills ranked second-lowest in median income; some people only act rich.
Watch less prime-time TV Overall, the rich aren’t much different from one leafy burg to the next. Across cities and regions, they universally spend big money on home improvements (average annual spending: $10,400) and luxury cars. They go to more live theater. They watch far less prime-time TV and read more news magazines. They travel abroad for business and pleasure. They are nearly twice as likely as the average American to shop online and four times as likely to tune their radios to classical music.
But sift through the data, and you will see subtle differences among regions and cities in consumer purchases and activities, according to Market Potential Indexes supplied by ESRI using data from Mediamark Research Inc.
The Northeast accounts for nearly two-thirds of the ritzy ZIPs (32) and more than half of the affluent ZIPs’ population (about 320,000). The greater New York are -- including the winding roads of Westchester County, Connecticut and northern New Jersey -- is home to 24 top ZIPs and 256,000 residents. Two of the nation’s hubs of old money, Philadelphia and Boston, account for most of the region’s remaining wealthy ZIPs.
Longest commutes Demos for the Northeast’s affluent ZIPs track closely with those of the affluent Midwest (represented by the Chicago North Shore enclaves of Kenilworth, Glencoe and Lake Forest). Residents (median age 41 to 42) have the longest commutes (34 minutes) among the ritzy 50. They buy more luxury cars and vote in elections more reliably than their rich peers in other regions. They’re twice as likely as the average American to take a vacation on a cruise ship.
Bottom line for marketers and media: If it plays in Peoria (or at least Kenilworth), it should play in Westchester.
But there’s not a lot of population growth. ESRI projects slow growth for most ritzy ZIPs in the Northeast and Midwest; it expects only two of the 35 will see growth greater than 1% a year through 2009. In the West, four of the 14 rich ZIPs should see greater than 1% growth. Atlanta’s rich ZIP should grow 1.5% a year.
Residents of the richest ZIPs in the West are a little more Web-centric than their counterparts elsewhere. The West Coasters are more likely to shop at Amazon.com, to purchase airline tickets online and to own a notebook computer. The tech bent isn’t surprising given that the rich-ZIP list includes the estates of Silicon Valley (Atherton, home of Google CEO Eric Schmidt) and suburban Seattle (Medina, Wash., home of Bill Gates).
West's rich are older One surprise: The West is the new home for old money -- not old as in inherited, but older as in age. Median age of the rich list’s 14 West Coast ZIPs is 46, four to five years above that of affluent ZIPs in other regions. What gives? Don’t blame it on Sunbelt retirees. The median age in Los Altos, a pillar of Silicon Valley, is above that of desert oasis Paradise Valley.
Median ages for the rich ZIPs in Northern California and Los Angeles are around the mid-40s. That’s a reminder of how Silicon Valley is getting older (Apple Computer’s Steve Jobs now qualifies for membership in AARP). In Southern California, the aging residents of Santa Monica 90402 go (OK, drive) to the gym more than their cohorts in any other ritzy 50 ZIP. They’re heading toward age 50, but rich residents of that seaside town are not about to surrender their youth.
A wise saver over time would have more than that in his/her portfolio alone.
I live in that ZIP code and those people you describe are the minority. It's the West Side and Downtown that are home to most of the Libs. Don't get me wrong, there are libs over here too, but among the wealthy they are the exception. People see me coming from a mile away and know me for what I am - Uppper East Side Conservative.
Really? Think about how much equity you've got in your home - particularly in this inflated real estate market. And then add in your 401K, your IRAs, any cars you own outright, plus the furniture, including audio, video, and computer equipment that you've got in your home. See if you don't get darn near 400,000. I think a lot of folks probably do.
When and where in all of world history has a prosperous nation had its 0.2% richest elite a mere 3 times wealthier than the 99.8% average of the rest of said nation?!
Exactly! And that's why it's also time to put an end to the myth that Republicans are the party of the wealth and priviledge in this country. Besides the very wealthy left and right coasts which are dominated by liberals, some of the wealthiest "Heartland" regions are also exploding with Democrats. When you look at the Rocky Mountain region out West, some of the wealthiest cities and counties (in Colorado, Idaho and Wyoming) are now Democrat.
According to Michael Barone, "each state's wealthiest county was also the only county to vote for John Kerry: Blaine County, Idaho (Sun Valley), Teton County, Wyo. (Jackson Hole) and the liberal trustfund counties that contain Aspen, Telluride and Boulder.
During the Red State/Blue State war of words, it was obvious what Democrats really thought of those with lesser incomes, as they openly attacked the Red States. The Democrat Party can no longer claim to represent the downtrodden in this country, when they have become the very rich they supposedly despise. It is about guilt and hypocrisy.
"They are nearly twice as likely as the average American to shop online and four times as likely to tune their radios to classical music... "
I fit this profile - so why am I (almost) broke ??
If you lived in some of these cities (e.g., Filthadelphia and Baltimore), you would want to be segregated and insulated from the 'man in the street'!
I would like to see the entire data.
Sometime back, I heard the most affluent zip code in the USA was Rancho Sante Fe, Calif. (which is in inland, semi-rural San Diego County).
Another interesting study would be the number of $1 million+ homes. In that respect, I'll wager California leads, not NY suburbs.
I sell real estate on the Orange County, CA coast. People often ask: "who is it that buys these homes?"
One answer is: "folks with a knack for making enough money, to afford them."
An agent in my office has a client that sold a couple of computer businesses (for $11 million), and retired at age 43.
He buys and remodels houses, now, for a hobby. He doesn't need money. He needs interests in life.
He looks and acts more like a beach bum, than a wealthy person. He probably doesn't live in these top Zip Codes.
I'm intrigued. What's a parallel community, and what was that like in London?
Too much shopping online? ; )
You're kidding, right? Ever been to Naples, Florida or Bloomfied Hills, Michigan?
Check out Lakeway in Austin--a blue pustule in a mostly radiant red state...
At least the affluent areas of Florida have "bussing", whereas the parlor pinks in Westchester and Long Island have nice little segregated public schools for the kids.
No, I'm not. How many middle class live in 11771, 93953 or 33455? Besides, isn't Florida on the East Coast?
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During the boom 77063 was number one, well I did move away.
Zip codes with highest % of residents with income over $100K from CNN/Money
94507 Alamo, CA 70.90%
94027 Atherton, CA 78.04%
94506 Danville, CA 78.24%
94028 Portola Valley, CA 75.56%
92067 Rancho Santa Fe, CA 74.48%
95970 Saratoga, CA 70.42%
06883 Weston, CT 70.09%
06897 Wilton, CT 69.88%
60022 Glencoe, IL 70.91%
60043 Kenilworth, IL 82.92%
66221 Overland Park, KS 74.50%
02493 Weston, MA 70.09%
21029 Clarksville, MD 70.00%
20854 Potomac, MD 73.53%
08502 Belle Mead, NJ 69.49%
07021 Essex Fells, NJ 70.06%
08836 Martinsville, NJ 70.33%
07046 Mountain Lakes, NJ 70.05%
08550 Princeton Junction, NJ 72.62%
07078 Short Hills, NJ 76.70%
10506 Bedford, NY 74.82%
10554 Chappaqua, NY 72.90%
11568 Old Westbury, NY 70.23%
10576 Pound Ridge, NY 72.80%
10577 Purchase, NY 75.73%
19035 Gladwyne, PA 69.80%
77094 Houston, TX 72.49%
76092 Southlake, TX 73.21%
22039 Fairfax Station, VA 79.20%
22066 Great Falls, VA 78.66%
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