Anaheim No. 2, Irvine No. 7, Santa Ana No. 14
AI, biotech and healthcare sectors fuel gains
Minimum wage hike and strong job market also contribute
Three Orange County cities ranked among the nation’s fastest-growing metropolitan areas for real household income, highlighting the region’s strong economic momentum despite concerns over California’s high cost of living.
The Los Angeles Times reported Wednesday, citing a new study by financial advisory firm SmartAsset, that Anaheim ranked second nationwide in real household income growth, followed by Irvine in seventh place and Santa Ana in 14th among the 94 largest U.S. metropolitan areas. The study measured 2024 real household income growth, adjusting for inflation and including wages, investment income and retirement income.
The results were particularly notable because Orange County outperformed Silicon Valley, long considered California’s economic powerhouse.
Anaheim posted a 16% increase in real household income over the past year, making it the second-fastest-growing metro area in the country. The gain exceeded those recorded in San Jose and San Francisco, despite the Bay Area’s continued boom in artificial intelligence investment.
Economists attribute Orange County’s performance to a combination of strong job creation and the expansion of high-paying industries.
Raymond Sfeir, an economist at Chapman University, said Irvine’s growth has been driven largely by the University of California, Irvine, whose research park continues to attract startups, researchers and highly paid professionals. He added that the expansion of major medical technology and pharmaceutical companies, including Edwards Lifesciences and Allergan, has also boosted the region’s supply of high-wage jobs.
California’s increase in the minimum wage for fast-food workers—from $16 to $20 an hour—may also have contributed, particularly in Anaheim, home to Disneyland and a large concentration of hospitality and food-service workers.
Orange County’s labor market has remained exceptionally strong in recent years, with employers creating jobs faster than the local workforce can fill them. Continued growth in healthcare, medical devices, dental technology, electronics and AI-related industries has attracted skilled workers from outside the region.
Northern California also posted solid gains. San Francisco and San Jose each recorded real household income growth of more than 5%, placing both cities among the nation’s top 20. However, because incomes in those areas were already much higher, their growth rates lagged behind Orange County’s.
More than 35% of households in San Jose earn at least $200,000 annually, compared with about 18% in Anaheim. Median household income also varies widely across California, reaching approximately $148,000 in San Jose versus about $74,000 in Fresno.
