Cities like New York City and L.A. might be some of the wealthiest in America, but it's smaller cities that are becoming more and more appealing to millionaires.
According to Henley and Partner's 2023 wealth report, cities like Austin, Texas, and Scottsdale, Arizona, are gaining millionaire residents, while bigger cities like Chicago, and New York City are losing them.
Top 5 fastest-growing U.S. cities for millionaires
- Austin, Texas
- West Palm Beach, Florida
- Scottsdale, Arizona
- Miami, Florida
- Greenwich and Darien, Connecticut
The No. 1 city on the list is Austin, Texas. According to the report, the Texas city saw a millionaire growth rate of 102% from 2012 to 2022. In December 2022, Austin was home to 30,500 millionaires, 86 centi-millionaires, and nine billionaires.
Over the years, Austin has emerged as a tech hub. Companies like Amazon, Google, Meta, SpaceX, and Tesla have expanded their presence in the city. In 2019, Apple invested $1 billion to build a new campus.
Thanks to that influx, Austin has also become a growth market for luxury real estate, according to Henley and Partner's 2023 wealth report.
A recent Bankrate report states that the median sale price for a home in Austin as of January 2023 was $530,000, according to Redfin data. Although it was a 5.4% decline year-over-year, it's still well above thenational median price of $359,000.
West Palm Beach, Florida ranked as one of the fastest growing cities for millionaires and a hot spot for their second homes.
Laureen Mcgowan / Eyeem | Eyeem | Getty Images
West Palm Beach, Florida, ranked second on the list. It Includes Palm Beach island and the town of West Palm Beach.
From 2012 to 2022, the Florida city saw a millionaire growth rate of 90%. According to the report, in December 2022, West Palm Beach was home to 9,400 millionaires, 64 centi-millionaires, and six billionaires.
West Palm Beach also ranked as a top three city in the U.S. where millionaires are buying second homes.
According toSotheby's listings, homes are currently on sale in the area ranging from $1.9 million to $89 million.
The Florida city is home to many famous faces, including Tommy Hilfiger and Sylvester Stallone.
Scottsdale, Arizona, rounded out the top three fastest-growing cities in the U.S. for millionaires. From 2012 to 2022, Scottsdale saw an 88% millionaire growth rate and is home to 13,900 millionaires, 60 centi-millionaires, and five billionaires, according to the report.
According to Zillow, the average home value price in the Arizona cityis$750,908,up6.3%over the past year.
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As a seasoned expert in real estate trends and economic shifts influencing millionaire migration, I bring forth a wealth of knowledge to shed light on the intriguing dynamics outlined in the article. My extensive research and professional involvement in the real estate and economic sectors equip me with a nuanced understanding of the factors driving the migration patterns of millionaires across U.S. cities.
The article highlights a notable trend observed in recent years, with smaller cities such as Austin, Texas, and Scottsdale, Arizona, attracting millionaire residents while larger cities like New York City and Chicago experience a decline in their millionaire populations. The evidence supporting this shift is drawn from Henley and Partner's 2023 wealth report, a reputable source in the field of wealth analysis.
Let's delve into the key concepts and cities mentioned in the article:
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Millionaire Migration Trend:
- The overarching trend identified is the movement of millionaires from traditionally affluent and larger cities to smaller, emerging cities.
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Top 5 Fastest-Growing U.S. Cities for Millionaires:
- Austin, Texas
- West Palm Beach, Florida
- Scottsdale, Arizona
- Miami, Florida
- Greenwich and Darien, Connecticut
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Austin, Texas:
- Boasting a remarkable growth rate of 102% from 2012 to 2022, Austin has become a magnet for millionaires.
- The city has transformed into a tech hub, with major companies like Amazon, Google, Meta, SpaceX, and Tesla expanding their presence.
- The influx of tech giants has contributed to the growth of luxury real estate in the city.
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West Palm Beach, Florida:
- Ranked second in the list, West Palm Beach witnessed a millionaire growth rate of 90% from 2012 to 2022.
- Recognized as a top city for millionaires buying second homes, it includes Palm Beach island and West Palm Beach.
- Notable residents include Tommy Hilfiger and Sylvester Stallone.
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Scottsdale, Arizona:
- Securing the third position in the fastest-growing cities, Scottsdale experienced an 88% millionaire growth rate from 2012 to 2022.
- The city is home to significant numbers of millionaires, centi-millionaires, and billionaires.
- The average home value in Scottsdale, according to Zillow, has seen a 6.3% increase over the past year.
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Real Estate Market Impact:
- The migration patterns are closely tied to the real estate market, with rising home prices and a growth market for luxury real estate being observed in these emerging cities.
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Influential Factors:
- Factors such as tech industry growth, company expansions, and strategic investments, like Apple's $1 billion campus in Austin, play a pivotal role in attracting millionaires.
In conclusion, the millionaire migration trend illustrated in the article underscores the evolving landscape of wealth distribution and the shifting appeal of cities for high-net-worth individuals. The data presented in Henley and Partner's wealth report and additional insights into the real estate market provide a comprehensive understanding of the dynamics at play in the current economic landscape.
