At the heart of one of the world’s richest tech and innovation hubs, economic freedom is attainable — but only for a select crowd
According to a study done by the newly released 2025 Silicon Valley Index, published by the Joint Venture Silicon Valley, just nine households hold more wealth than the bottom 50% in the San Mateo and Santa Clara regions.
With the obvious financial gap in the region, the report indicates that Silicon Valley still boasts 89 billionaires and 145,000 millionaires, while 30% of residents are not self-sufficient, and 37% of children still live in families at risk for food insecurity.
The same report also states that the top 1% of households now hold about 15% of the region’s collective liquid assets while the bottom 50% still “struggle to claim even a fraction of that pie,” the report says.
A Palo Alto High School educator who resides in Palo Alto requested to remain unnamed because she doesn’t want her financial conditions to be exposed at her workplace, states that she does not want to be publicly known as someone who faces financial stress for her family.
She shares her experience on how her financial situation differs from that of employees who work in majority tech-based companies.
“People come from all over the world with money,” the educator said. “It’s hard to compete being a teacher where people from Google, Apple, and other high-tech companies [have] earnings [that] are much higher.”
The Silicon Valley Index report also stated that as a result of staggering prices, half of Silicon Valley’s residents spend more than 30% of their income on rent.
The educator also acknowledged that having a sustainable financial budget is a challenge for her and her family.
“It is hard to manage a family budget being an educator in a high-paid area and still living here,” the educator said.
According to the report of the Silicon Valley Index, the median home price in Palo Alto hit $1.92 million last year. Fewer than 26% of first-time home buyers can afford this price tag on homes.
“It looks like it’s almost impossible for educators to stay in the area,” the educator said. “When I go and see other families who are not in education, they can afford more. I have to work multiple jobs to make my dreams come true.”
Eric Bloom, a Paly teacher who teaches Economics and Macroeconomics, says the average resident in Palo Alto doesn’t have the same view on economics as the average working-class person living in Palo Alto.
“Even if you say the top 20 percent, the top quintile, it is still a huge portion of the economy,” Bloom said, “The ranges in incomes are almost as big as the range of the income in the bottom 80 because of the high concentration of wealth we have in the United States right now.”
Bloom describes a giant gap within not just wealth, but also the living experience. He states this was especially the case for those who serve and work for the richer parts of the community.
“In a community like Palo Alto, you have a huge portion of the residents having no understanding of what it is like for those who are serving them, working for them, what their lives are like,” Bloom said.
Bloom complained about the ignorance of people leading governments or corporations to continue to treat people differently.
“A wealth gap and poverty persist in our society because we are blinded to its impacts,” Bloom said. “We shelter ourselves off and that allows us to facilitate a government that treats people the same way, that undervalues some and favors others.”
Brennan Bailey, a sophomore at Paly, said wealth inequality in Palo Alto was originally caused by racism.
“By separating the rich from the poor, it is an easy way to separate Black and White,” Bailey said. “There is a really big noticeable difference between the racial makeup and economic makeup of the two places.”
According to Data USA, the most common racial or ethnic group in East Palo Alto is Hispanic, whereas the majority of people in Palo Alto are White.
East Palo Alto was plagued by the history of redlining, where the technique was used by banks to refuse loans to residents living in areas deemed too poor, which might pose a potential financial risk for banks.
Redlining was used in Palo Alto in the 1950s, which caused an influx of Black residents into East Palo Alto. The long-term impacts that the technique induced were reduced house ownership opportunities in Palo Alto.
This practice was later outlawed in 1968 with the passing of the Fair Housing Act. However, the lasting effects of redlining still influence the gap between East Palo Alto and Palo Alto.
According to the United States Census Bureau, the median household income in East Palo Alto is $104,832 as of 2023, while the median household income for Palo Alto is $220,408.
Even in the midst of all the financial pressure that lower-income residents might be facing, there is still a glimmer of hope for those who are dedicated to staying in Palo Alto.
“It’s okay, we can do this, but the only thing is how we can stay here,” the educator said.