The word “suburbia” conjures up images of sleepy cul-de-sacs, where local drama might entail someone mowing a lawn diagonally rather than vertically.
It’s little wonder then that Palm Beach, FL—a posh paradise that offers its well-heeled residents a luxurious waterfront lifestyle and vibrant nightlife—would bristle at being called a mere fringe community.
Yet that’s precisely what GOBankingRates.com did when it recently listed Palm Beach as the 11th wealthiest “suburb” in the U.S.
The affluent city, with a population of just 9,245, got wind of what some consider an unbecoming designation—and now, an urban versus suburban controversy is brewing on the beach. Some residents are downright “fuming” over being lumped into a category normally reserved for bedroom communities, according to the New York Post.
The majority of locals don’t consider Palm Beach a suburb at all, and they’re offended by the label.
(Realtor.com)
Snubbing suburbia
Despite what GOBankingRates says, many residents prefer to define urban and suburban more personally.
Real estate agent Linda R. Olsson lives in Palm Beach and has worked there for 35 years. She has some distinct thoughts about the controversy.
“Palm Beach is an island paradise, unlike any place in the United States,” she insists. “It is not a suburb.”
Perhaps Palm Beach residents prefer to consider pedigree rather than data-driven distinctions when thinking about their town.
After all, Palm Beach is home to at least 61 Forbes-ranked billionaires and, according to Olsson, they are very good neighbors.
“Palm Beach’s residents are sophisticated, philanthropic people who spend a tremendous amount of time on their specific charitable organizations,” Olsson says. “They are well traveled and community-oriented.”
Celebrities who reportedly live in Palm Beach include Serena Williams, Sylvester Stallone, Howard Stern, Donald Trump, Tiger Woods, Jon Bon Jovi, and Tommy Hilfiger.
(Realtor.com)
Is Palm Beach suburban—or not?
A suburb designates an area on the outskirts of a city or large town. These areas are typically characterized by residential neighborhoods, lower population density compared with urban areas, and a higher proportion of single-family homes.
As it turns out, Palm Beach technically meets many of these criteria.
GOBankingRates says it is also a suburb of the larger Miami, Fort Lauderdale, and Pompano Beach metro. (The enclave is 70 miles from Miami, 45 miles from Fort Lauderdale, and 35 miles from Pompano Beach.)
Realtor.com® economist Hannah Jones adds that a suburban designation is also calculated by density and demographics over distance.
“Suburb designation is based on the population density of a given area relative to other ZIP codes in the metro,” Jones explains.
Realtor.com classifies the top 25% of ZIP codes by density as “urban,” the next 50% as “suburban,” and the bottom 25% as “rural.”
Although many Palm Beach residents might not want to admit it, Jones says, “According to our data, Palm Beach falls into the ‘suburb’ category due to its relatively low population density compared to Miami’s core urban area.”
These suburbs are not cheap
In some metros, buying a home in the suburbs is a money-saving move; but in other places, suburban dwellings are pricier than homes in the urban core, says Jones.
GOBankingRates reports that the average household income in Palm Beach is $365,991 and the typical home value is (gulp!) $11,571,608.
Yet on average, Palm Beach ZIP codes are more affordable than central Miami ZIP codes—but more expensive than the Miami metro area as a whole, according to Jones.
“Affordability in Palm Beach, relative to central Miami, varies,” Jones reports. “Some ZIP codes are more affordable, and some are less so.”
(Realtor.com)
(Realtor.com)
In June, the median listing price per square foot in the Miami metro area was $377—and $629 in Palm Beach.
Suburb or not, one thing is clear: Money seems to be no object when it comes to deep-pocketed Palm Beachers who will likely let this controversy drift away on an (exclusive) ocean breeze.
The 10 wealthiest suburbs
While Palm Beach ranked No. 11 on GOBankingRates’ America’s wealthiest suburbs list, here are the top 10 suburbs that beat out the affluent enclave.
Suburb of New York-Newark-Jersey City, NY-NJ
Average household income: $568,942
Typical home value: $1,413,514
2. Rye, NY
Suburb of New York-Newark-Jersey City, NY-NJ
Average household income: $405,074
Typical home value: $2,119,482
Suburb of Houston-Sugar Land-Baytown, TX
Average household income: $403,845
Typical home value: $1,605,049
Suburb of San Jose-Sunnyvale-Santa Clara, CA
Average household income: $400,817
Typical home value: $4,451,059
Suburb of Phoenix-Mesa-Glendale, AZ
Average household income: $385,643
Typical home value: $3,449,905
Suburb of Dallas-Fort Worth-Arlington, TX
Average household income: $381,235
Typical home value: $2,305,281
7. Hinsdale, IL
Suburb of Chicago-Joliet-Naperville, IL
Average household income: $380,479
Typical home value: $1,088,871
Suburb of Washington-Arlington-Alexandria, DC-VA-MD
Average household income: $373,735
Typical home value: $1,564,775
9. Orinda, CA
Suburb of San Francisco-Oakland-Fremont, CA
Average household income: $370,203
Typical home value: $2,078,615
10. Wellesley, MA
Suburb of Boston-Cambridge-Quincy, MA
Average household income: $367,801
Typical home value: $1,979,339
