Opposing Misperceptions of Wealth: Liberals overestimate their neighborhoods’ wealth in wealthier neighborhoods, while Conservatives overestimate their neighborhoods’ wealth in poor neighborhoods

Although perceptions of wealth are shaped by people’s social environment and ideological beliefs, few studies integrate these two perspectives. We address this oversight by examining the association between participants’ actual and estimated average neighborhood household income and whether political orientation moderates this relationship. Using a large, nationwide random sample of New Zealand adults (N = 14,853), our results reveal that both liberals and conservatives overestimated the wealth of their own neighborhoods—but these differences only emerged in the poorest and wealthiest neighborhoods. Specifically, in poor neighborhoods, conservatives were less accurate than liberals at estimating the average income of their neighborhood. In rich neighborhoods, liberals were less accurate than conservatives at this same task. The implications of these results for understanding (mis)perceptions of wealth on both sides of the political spectrum are discussed.