Tale of two cities as neighboring Bay Area communities reveal state’s staggering income gap

Just a few miles apart, two Bay Area communities paint a stark picture of California’s widening wealth divide — one a working-class enclave where many families struggle to make ends meet, the other an exclusive Silicon Valley haven lined with mansions and gated estates.

In San Mateo County, just south of San Francisco, North Fair Oaks is home to a large immigrant population that has helped power the region’s workforce. The community’s median household income was about $129,000 between 2019 and 2023, according to the San Francisco Chronicle.

Directly next door sits Atherton, long considered one of the wealthiest ZIP codes in America and home to some of Silicon Valley’s biggest fortunes. There, average household income during the same period reached roughly $646,000 — more than five times higher than in neighboring North Fair Oaks.

Looking online, images from North Fair Oaks community events in the 1.2-square-mile stretch of unincorporated land include mariachi bands, Mexican dancers and parades filled with Mexican culture in the largely-Spanish speaking immigrant community.

A brightly colored mural in the town includes a painted Mexican artwork, which includes the UFW (United Farm Workers) flag, and a sign that reads “Little Mexico.”

The residents struggle to get by, working 14-hour days taking care of the property of Atherton residents, with multiple families living in single family apartments. The average cost to rent a one-bedroom apartment is $3,000, per the report.

As an unincorporated town, the community struggles with outdated sewage systems, faulty power grids and illegal dumping.

Longtime North Fair Oaks resident Gabby Valencia spoke to the outlet about where Middlefield Road and Ninth Avenue intersect.

“See how the trees just stop?” Valencia said. “That’s how you know you’re in North Fair Oaks. It’s a different world over here.”

“It’s like those cartoons where you have that dark cloud just following you wherever you go.”

“It really feels like we can’t catch a break,” she added.

One picture showed a celebration about the completion of the Middlefield Road project.

That same road runs through the community of Atherton where the shaded tree-lined streets replace stark sidewalks of check cashing storefronts and taquerias.

Pictures posted on Instagram of places in Atherton are truly stunning. The local library contains almost all glass windows with a shaded outside corridor.

Atherton Vice Mayor Rick DeGolia told the outlet he knew North Fair Oaks “a little bit.”

“It’s on the way to Costco, vegetable markets and a variety of other businesses,” he said.

There’s images of homes in the community that look like palaces and mansions that lie behind giant gates. The median home sale price in Atherton is approximately $25.2 million.

One local realtor page describes the town as the area’s most “exclusive residential enclave — a quiet, wooded sanctuary where billionaires, VC partners, and tech executives retreat from the industry they built.”

“There are no storefronts, no restaurants, no traffic lights. Just ancient oaks, hidden driveways, and the occasional glimpse of a mega-estate behind a wrought-iron gate,” it added. 

The population in Atherton is made up of 62% white, while there’s only 14% hispanic population.

While over in North Fair Oaks, the population is predominantly Latino, with 72%, according to the report.

To calculate the income, the outlet used the American Community Survey.