California wealth has a way of distorting reality. What looks like a comfortable income and net worth in most states barely registers as lower class in major cities of California.
Between real estate that is absurdly expensive and the constant creep of living costs, the line isn’t where you might expect. So how much money do you actually need to be considered upper class in the Golden State?
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What Is Net Worth?
Net worth is considered the standard way to gauge another person’s financial health by measuring what they own versus what they owe. What they own would be assets like savings, investments, home equity (which is probably the biggest asset anyone will own), etc. What they own is also called liabilities, and this includes the mortgage, student loans, regular loans and credit card debt.
Net worth = assets – liabilities
The United States has some massive net worth gaps. The Federal Reserve estimates that in 2022, the average household net worth was around $1,063,700. Sounds like a lot, right? Not really when you learn that this number is skewed upward by a small group of ultra-wealthy families.
The real measure of what “typical” American households has is median net worth, which is far lower at around $192,900, though some more recent sources say this number is closer to $180,000.
Discover More: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
Average Net Worth in California vs. the Rest of the US
California households hold more wealth than the rest of the country, but they also shoulder bigger debts.
The state’s median net worth is about $288,000, compared to $180,000 elsewhere.
Home equity makes up the bulk of California’s $494,000 assets with it being roughly $484,000 compared to $178,000 nationwide. Debt is higher too, at about $103,000 versus $74,000.
What ‘Upper Class’ Means in California
When people talk about the “upper class,” they usually mean folks who not only earn a high income, but have enough savings, investments and assets to feel secure no matter what life throws at them.
By that measure, most Californians sit far from the top with a median net worth of about $288,000, compared to the roughly $3 million needed to be considered upper class.
And the more expensive ZIP code you live in, the more money you’ll need to make (and keep) to join this class.
For example, living in places like the San Francisco Bay Area and Los Angeles County will require you to have a much higher net worth of $4.7 million and $3.5 million.
Here’s how much you need to be considered upper class in most of California:
| Class tier | Net worth range | Notes |
| Middle class | $200,000-$400,000 | Reflects most California households |
| Upper middle | $1,000,000-$3,000,000 | Provides flexibility but still vulnerable to high housing costs |
| Upper class | $3,000,000+ | Floor for financial comfort in most of California |
| Upper class in SoCal | $3,500,000+ | Southern California residents (such as Los Angeles and San Diego) require a higher net worth |
| Upper class in S.F. | $4,700,000+ | San Francisco Bay Area needs a much higher net worth |
Why California Demands Much More
You’ve probably heard over and over again about how expensive California is. The average house costs $868,150, which is nearly double the national median.
Mortgage payments, property taxes and insurance on a mid-range home can easily top $6,000 per month, and that’s not even including homeowner’s association (HOA) fees, utilities, maintenance, landscaping, etc., that go into owning a home.
There’s also a much higher cost for everyday necessities like groceries, gas, car payments and childcare, just to name a few.
In California, a million-dollar net worth isn’t as valuable as it would be elsewhere. Which is exactly why you need to have a much higher net worth just to live in the state (even the rural parts, too).
Final Thoughts
The net worth threshold for the “upper class” in California is approximately $3 million and can increase to as high as $4.7 million in the most affluent areas. Between insanely high home prices and expensive cost of living, $3 million is about the point where your wealth would reach the level of providing real financial comfort in the Golden State.
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This article originally appeared on GOBankingRates.com: Here’s the Minimum Net Worth Considered To Be Upper Class in California
