A study published by financial technology company SmartAsset revealed that Oakland and Fremont are among the top 20 U.S. cities where income inequality increased the most in the past year. The two cities tied for third place, with only Chesapeake, Virginia (second place), and Madison, Wisconsin (first place), having more drastic income gaps between their highest and lowest earners.
“Many dynamics may contribute to income deltas, including local job markets, housing markets, demographics, legislation and more,” said Jaclyn DeJohn, SmartAsset’s director of economic analysis.
“The rich get richer and the poor get poorer” is an aphorism arguably more relevant now than ever before. Known in academia as “the Matthew Effect,” it describes the social phenomenon where individuals with resources are more likely to gain even more wealth, while those with fewer resources struggle to improve their financial status.
In the Bay Area this gap is particularly pronounced as the influx of high-paying tech jobs continues to drive up the cost of living. According to data from the U.S. Census Bureau, the median home value in the San Francisco-Oakland-Fremont metro area is $1.1 million, more than double the national median of $340,200.
Cities were 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. Data from County Health Rankings and Roadmaps (CHR&R) and the U.S. Census Bureau revealed that in Fremont and Oakland, the top 20% of earners made $5.41 for every $1 earned by those in the bottom 20% in 2024, up from a ratio of $5.24 in 2023. This represents a 3.24% increase.
Oakland-based communications manager Kayla Henderson-Wood says she feels the pressure as routine costs like car ownership, gas and food put a strain on her budget. Wood owns a consulting business, so she generally has multiple income streams, but she recently decided to pause that to launch a magazine. Without the extra income, she finds her financial situation tighter.
“I had to ask my mom for money, which I haven’t done since high school,” Wood said.
She considered leaving the Bay Area, but says her business keeps her here. While she enjoys life in the area, she says she must be mindful of how much she spends. So she enjoys the occasional wine tasting trip in Napa, but balances it out with free or low-cost activities like taking the ferry, going to the beach with a book and leisure activities at home.
“It does seem like every time I leave the house, I incur a fee for it, so sometimes I feel like I just need to stay inside,” Wood said.
Even households within the top 20% of these cities feel the squeeze. Senior financial analyst David Wilson, who describes himself as “middle class,” says he and his wife struggle to provide for their two children on their combined salary of almost $200,000. Despite having advanced in his career and making what some would consider a “good salary,” he says his family lives paycheck to paycheck and struggles to save.
“We’re one disaster away from being in a really bad financial position,” Wilson said.
Having lived in Fremont all his life, Wilson says he’s witnessed the bleak trend of rising housing costs pricing out families. His brother is leaving the state, and he’s also considered it. But he loves the Fremont Unified School District where his children attend school, and so he stays.
Wilson says leaning on those close to him makes things easier. Relying on others when he’s in a bind and making family trips to the grocery store ease the difficulty of going through financial hardships.
“We have a good support network, and that’s why we’ve lasted here,” he said.
