SmartAsset’s latest study examines 94 of the United States’ largest population centers — including several cities in Arizona — to identify where income has grown the most over the last two years. So, where is income growing the fastest in Arizona?

DEEPER DIVE: Arizona has 6 of the 30 happiest cities in America

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Among the study’s key findings

  • Tucson saw the biggest increase in median household income in Arizona, ranking No. 23 nationally. As of the most recent year, income there was $60,483, a bump of 5.5% after adjusting for inflation. Meanwhile 5.6% of households earned more than $200,000 per year in Tucson. 
  • In Mesa, income changed 5.0% year-over-year, after adjusting for inflation. 
  • Nationally, 63 of the 94 communities included in the study had positive year-over-year income growth after adjusting for inflation.

Inflation erodes purchasing power by pushing up the cost of everyday goods and services. In many U.S. cities, median household income has outpaced inflation by a wide margin, offsetting the impact of rising costs. In others, however, residents are falling far enough behind to intensify the squeeze on household budgets.

SmartAsset ranked 94 major population centers in the United States — cities and census-designated places with 250,000 or more residents — based on the percent change in median household income over the most recent two-year period for which data was available. The share of households earning $200,000 per year or more in each city was also calculated. The results show where personal finances gained the most ground against rising prices and where income growth failed to keep up.

Key findings nationally

  • Income increased in two-thirds of the places analyzed. Sixty-three of the 94 communities included in the study had positive year-over-year income growth after adjusting for inflation.
  • Western communities posted the biggest income gains. Enterprise, Nevada, ranks No. 1 in the study. There, median household income increased an estimated 18% after inflation, rising from $93,905 to $111,128. Anaheim, California, and Henderson, Nevada, followed.
  • The Twin Cities ranked near the bottom. St. Paul, Minnesota, ranked last, with an 8% income decline after adjusting for inflation. Minneapolis, meanwhile, had a 7% inflation-adjusted decline, placing it No. 93 in the study.
  • Texas cities show divergent income trends. The 14 Texas cities evaluated in the study varied widely, ranging from No. 6 Lubbock, where median income rose 11% after adjusting for inflation, to Austin, where median income declined 4%.
  • California leads for high-income households. The three cities with the highest share of high-income households — those earning $200,000 or more annually — are in the Golden State. San Jose leads, with 38% of households in that income range.