Silicon Valley is richer than ever. Fewer residents are sharing in it.

"With childcare costs and the rent, we're living paycheck to paycheck. As Silicon Valley generates unprecedented wealth, a new report finds that economic gains are increasingly tied to investments owned disproportionately by the region's more affluent residents, contributing to widening gaps in who shares in the growing prosperity."

"According to the 2026 Silicon Valley Index report, about 70% of households in the region earning more than $200,000 a year collect investment income - including earnings from stock dividends, bond interest and other returns. That's compared to less than 1% of those making under $200,000, highlighting how asset ownership is exacerbating the Valley's economic divides."

"Joint Venture Silicon Valley, the nonprofit think tank behind the report, attributed the asset imbalance in large part to the venture capital model the region helped pioneer. It's now common for major tech companies and fledgling start-ups alike in the Valley to grant investors and employees stakes in ownership, such as stocks and other equities, which can grow exponentially."

Silicon Valley generates unprecedented wealth, but economic gains are increasingly tied to investments owned disproportionately by affluent residents, widening prosperity gaps. Investment returns rise faster than local wages and salaries, threatening to entrench financial disparities and strain the region's workforce, schools, and healthcare systems. The venture capital model pioneered in the Valley grants investors and employees ownership stakes like stocks and equities that grow exponentially. About 70% of households earning over $200,000 annually collect investment income from dividends, bonds, and returns, compared to less than 1% of those earning under $200,000. Investment gains have more than doubled over the past decade, demonstrating how asset ownership exacerbates economic divides even for high-income earners.

Read at The Mercury News