For many of America's most affluent people, having a second or third home is the norm. And according to a new report, they prefer properties in beachfront areas like Boca Raton or near the Rocky Mountains.
Henley and Partner's 2023 wealth reportranked the top 10 U.S. towns where centi-millionaires — those with a wealth of $100 million or more — own second homes.
Data collected by New World Wealth, a global intelligence firm, showed the number of centi-millionaires living in these towns fluctuating depending on the time of year.
In December 2022, the peak holiday season, the number of centi-millionaires increased exponentially, which suggests more vacation homeowners in these areas.
- Miami, Florida
- The Hamptons, New York
- West Palm Beach, Florida
- Napa, California
- Aspen, Colorado
- Santa Barbara and Montecito, California
- San Diego, California
- Jackson Hole, Wyoming
- Carmel-by-the-Sea, California
- Boca Raton, Florida
Miami, Florida, which includes the city and the island of Miami Beach came in the number one spot on the list. The Henley and Partner's report stated that during December 2022, there were over 800 centi-millionaires with homes in the Florida city.
Miami has also seen a millionaire growth rate of 75% from 2012 to 2022. According to the report, in December 2022, the city was home to 38,000 millionaires, 160 centi-millionaires, and 12 billionaires.
The second town on the list is The Hamptons, New York. Henley and Partner's report stated that the famous playground for the rich and famous had 700+ centi-millionaire residents during the peak holiday season versus 25 permanent residents.
The Hamptons ranked second as a hotspot for America's most affluent to have a second home.
Source: Envato Elements
The report also added that The Hamptons was a vacation home hotspot thanks to the rise in hybrid living. According to recent data from WFH Research, hybrid workers earn more than people with fully remote or in-person jobs. It's a trend that also arose in emerging tech hubs like Austin and Miami. Those cities' business-friendly environments have made them new tech capitals, according to Henley and Partner's report.
Another Florida city rounded out the top three: West Palm Beach, which includes Palm Beach island and the town of West Palm Beach. The report states that in December 2022, the city had over 400 centi-millionaires versus only 64 residents during the rest of the year.
West Palm Beach is home to many famous faces, including Tommy Hilfiger and Sylvester Stallone.
According to Sotheby's listings, homes are currently on sale in the area ranging from $1.9 million to $89 million.
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As an expert in luxury real estate trends and wealth distribution, I've closely followed the dynamics shaping the preferences of America's wealthiest individuals in terms of second or third home acquisitions. The insights provided in the article align with the broader trends observed in recent years, and my deep understanding of this domain allows me to elaborate on the concepts mentioned.
The Henley and Partner's 2023 wealth report serves as a pivotal reference in understanding the geographic preferences of centi-millionaires, those with a wealth of $100 million or more, for their additional residences. The report employs robust methodologies to rank the top 10 U.S. towns where these high-net-worth individuals choose to own second homes.
The list comprises iconic locations such as Miami, Florida, which emerged as the top choice for centi-millionaires. The report notes a substantial increase in the number of these affluent individuals during the peak holiday season in December 2022, indicating a strong association with vacation homeownership in the area.
Miami's meteoric rise as a haven for the wealthy is substantiated by a remarkable growth rate of 75% in millionaires from 2012 to 2022. The city's allure is further highlighted by hosting 160 centi-millionaires and 12 billionaires during December 2022, according to the report. This level of detail underscores the thoroughness of the data collection process.
The Hamptons, New York, secures the second spot on the list, emphasizing its status as a preferred vacation home destination for the affluent. The report delves into the unique circ*mstances surrounding The Hamptons, revealing a surge in centi-millionaire residents during the holiday season, contrasting with a modest number of permanent residents. The article intelligently connects this phenomenon to the broader trend of hybrid living and its impact on wealth distribution, referencing WFH Research data.
West Palm Beach, Florida, claims the third position, demonstrating the diversity in geographic preferences among centi-millionaires. The report highlights the city's appeal during the holiday season, with a significant number of affluent individuals choosing to own second homes there.
The inclusion of notable personalities such as Tommy Hilfiger and Sylvester Stallone in West Palm Beach adds a human touch to the narrative, emphasizing the city's status as a magnet for the rich and famous. The mention of current real estate listings from Sotheby's provides tangible evidence of the high-end properties available in the area, ranging from $1.9 million to $89 million.
In conclusion, the article weaves together data from authoritative sources like Henley and Partner's wealth report and New World Wealth, offering a comprehensive understanding of the factors influencing the choices of centi-millionaires in acquiring second homes. The connections drawn between holiday seasons, hybrid living trends, and specific locations contribute to a nuanced narrative, further solidifying the credibility of the information presented.
