Wealth Index
The wealth index reflects the overall economic prosperity and financial well-being of a county's residents based on income levels, employment rates, and income inequality metrics.
Income Statistics Overview
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Median Household Income | $200,000 | $96,718 | $78,145 |
| Median Personal Income | $132,798 | $68,943 | $61,726 |
| Average income growth | 5.5% | 6.0% | 5.1% |
| Six-Figure Earners | 43.6% | 16.9% | 13.2% |
The median household income in Palo Alto is about 107% higher than in California. Income has been growing slower in Palo Alto (5.5%/yr) than in California (6.0%/yr).
About 44% of adults in Palo Alto earn six figures ($100,000 or more) a year, higher than the California average of 17%.
Median Household Income 2009–2023 Trend
Median Household Income Over Time
Median household income in Palo Alto, California grew by 64.2% from 2009 to 2023, reaching $200,000 in 2023. That's an average of about 5.5% per year.
Economic Inequality in Palo Alto | Gender Pay Gap | Gini Coefficient
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Gini Coefficient | 0.529 | 0.596 | 0.570 |
| Male Median Income | $137,849 | $73,016 | $67,746 |
| Female Median Income | $123,811 | $63,704 | $54,793 |
| Gender Pay Gap | 10.2% | 12.8% | 19.1% |
The Gini coefficient measures how evenly income is shared between richer and poorer households, from 0 (everyone earns the same) to 1 (one household earns nearly everything). The lower the number, the more equally income is distributed. In Palo Alto, it is 0.529, lower than California's 0.596, so income is more evenly distributed here than there, and lower than the US's 0.570, so income is more evenly distributed here than there.
Men's income is about 11% more than women's income in Palo Alto, California. Over a 35-year career, a 11% wage gap accumulates to roughly $491,330 in unearned income for female workers in the area.
Income by Sex Over Time
Since 2009, the income gap between men and women in Palo Alto, California has narrowed from about 27% to 10% in 2023. In dollar terms, the gap has narrowed by $18,535 since 2009.
Employment
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Unemployment Rate | 3.8% | 6.4% | 5.2% |
| Working from Home | 33.4% | 15.5% | 13.4% |
| Commute time (minutes) | 21 | 23 | 22 |
Approximately 1,330 people are unemployed in Palo Alto, California.
The average commute time in Palo Alto is 21 minutes, shorter than the 23 minutes in California.
Unemployment Rate Over Time
Since 2011, the unemployment rate in Palo Alto, California has fallen from 5.2% to 3.8% in 2023.
Conclusion
Considering all these factors, Palo Alto, California has an overall wealth index grade of A+, making it far better than California, and far better than the country as a whole.
Frequently Asked Questions
Common questions about income and wealth in Palo Alto, California.
How Rich Is Palo Alto, California?
Palo Alto has a wealth index grade of A+. The wealth index grades areas from A+ (best) to F- by combining income levels, employment rates, and income inequality; an A+ grade means it is one of the most prosperous areas in the country. The median household income is $200,000, about 107% higher than the California average of $96,718.
What is the current median household income in Palo Alto, California?
As of 2023, the median household income in Palo Alto, California is $200,000.
What was the median household income in Palo Alto in 2023?
In 2023, the median household income in Palo Alto, California was $200,000.
What was the median household income in Palo Alto in 2020?
In 2020, the median household income in Palo Alto, California was $176,274.
What is the Gini coefficient in Palo Alto, California?
The Gini coefficient in Palo Alto is 0.529. It measures income inequality on a scale from 0 (everyone earns the same) to 1 (one household earns everything). That is lower than the US average of 0.570, so income is distributed more equally than in the country overall.
How has the income gap between men and women changed in Palo Alto, California?
Since 2009, the income gap between men and women in Palo Alto, California has narrowed from about 27% to 10% in 2023. In dollar terms, the gap has narrowed by $18,535 since 2009.