Massachusetts: What Net Worth Is Considered Wealthy In Boston?
CNBC recently published a report where they analyzed net worth in 13 major metros across the country. In doing this, they identified what was considered wealthy in these cities. For Boston, the net worth defined as wealthy in 2023 is $2.9 million.
What Does This Mean?
“Net worth is the measure of the value of the assets a person or corporation owns, minus the liabilities they own,” CNBC explains.
Much of the information reported here stems from modern wealth survey results generated by Charles Schwab. “When asked to express how much money it takes to be considered “wealthy” in America, 1,000 survey respondents across the country say it’s an average of $2.2 million. But among the 48% of Americans who say they already feel wealthy today, the average net worth is $560,000—about a quarter of that loftier target,” the survey explains.
Specific to Boston, the survey showed that only about 1/3 of Boston residents feel confident about their current wealth. This is in part due to the impact of inflation. For example, the increased cost of groceries, utilities, and transportation.
Wealth vs. Comfort
One key item the Charles Schwab survey points out is the difference between feeling financially wealthy as opposed to feeling financially comfortable. There is a significant gap between the net worth answers here. As mentioned, Bostonians feel $2.9 million is the net worth needed to feel wealthy. This number is a three-year high. However, to feel financially comfortable, that number drops to $932k. This figure is actually lower than the $1.1 million survey response from 2021.
How Does This Compare to the Rest of the Country?
San Francisco had the highest response, feeling they need $4.7 million in net worth to feel wealthy. Second place on the list was also in California, but significantly less. In fact, residents in the southern part of the state (LA and SD) felt $3.5 million was the net “wealthy” worth.
Overall, Boston ranked in the middle of the 13 cities survey to determine what net worth is considered wealthy in 2023. Seattle, New York, and Washington D.C were the other major cities that were higher.
