According to the recently published 2024 USA Wealth Report from global wealth advisory firm Henley & Partners in partnership with New World Wealth, approximately 5.5 million people in the United States have a seven-figure liquid net worth. That ranks the U.S. as number one in the world for millionaires.
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A decade ago, America’s lead looked like it would eventually be lost to China. That country’s meteoric economic rise grew its Gross Domestic Product (GDP) and created meaningful wealth. However, the COVID-19 pandemic lockdowns and increased Chinese government control over the private sector economy slowed their wealth creation.
On the other hand, Americans building wealth surged. The number of millionaires in the country rose by 62% in the past ten years. That’s significantly higher than the average rate of 38%. As a result, the United States is now home to 37% of the world’s millionaires, a two-percentage-point increase since 2018.
Award-winning journalist and author Misha Glenny affirms, “The USA remains the decisive economic power in the world.”
America Leads in Wealth Creation
In 2023, the U.S. GDP was the highest in the world — around $27.36 trillion, or $81,700 per capita. The U.S. economy and GDP rose in tandem except for minor downturns during the Great Recession and the COVID-19 pandemic.
The U.S. has the most liquid investable wealth of any country, at about $67 trillion, or $201,500 per adult, placing it sixth behind Monaco, Luxembourg, Switzerland, Australia, and Singapore.
Moreover, America has 9,850 people with at least $100 million in assets, known as “centimillionaires,” and 788 billionaires. Both figures make the U.S. No. 1 globally. Comparatively, China has a GDP of $17.7 trillion and a much larger population, but just 2,352 centimillionaires and 305 billionaires.
New York City leads the count in the states thanks to several industry giants in tech, real estate, publishing, fashion, and other industries. The Big Apple boasts 349,500 millionaires, 744 centi-millionaires, and 60 billionaires.
The Tech Boom Is Second to None
The tech boom is one of the main factors behind America’s significant wealth creation. The rapid growth of the computer software and hardware industry — Apple, Google, Meta, Adobe, Intel, AMD, and Nvidia — all have their headquarters and a significant part of their workforce in the Silicon Valley and Bay Areas of California.
High salaries combined with the concentration of some of the largest businesses in the world have generated unprecedented affluence. The Bay Area alone is home to about 305,000 millionaires and many billionaires.
Additionally, start-ups and company migration to Austin, Texas, drive population growth in the region. Following Tesla and Oracle’s relocation to the state’s capital, Austin’s millionaire count grew 110% between 2013 and 2023.
Thanks to Microsoft, Amazon, and Expedia, around 54,200 millionaires now live in Seattle, Washington. Cities like Dallas, Houston, Miami, Boston, Los Angeles, and New York City also benefit from rapidly growing tech presence and more millionaires.
Other cities show potential. Andrew Amoils, Head of Research at New World Wealth, states, “Future wealth hotspots to watch are Salt Lake City, Tampa, and Naples. Over the next decade, we can expect these cities to attract rising numbers of high-net-worth residents.”
The Stock Market Creates Unprecedented Wealth
The U.S. equity market, worth more than $50 trillion, continues to climb.
The Dow Jones Industrial Average ( DJIA ) is the price average of the Index’s 30 stocks. It represents some of the largest firms in the United States. The DJIA crossed 40,000 to reach a record high in May 2024. Although down since then, the market continues to trend up in a bull market. The S&P 500 Index also sets records, and the Nasdaq Composite moves higher.
A 2023 Gallup survey revealed that 61% of Americans directly own stock or hold some indirectly through a mutual fund, self-directed 401(k) plan, or Individual Retirement Account (IRA).
Ownership numbers rebounded after the Great Recession of 2007-2009. They are also nine percentage points higher than 2013’s low of 52%.
Consistent Retirement Savings Add to Wealth
Another reason for the record number of millionaires is regular, periodic savings in 401(k) and other retirement plans. An update from Fidelity Investments shows that 485,000 accounts had accumulated assets of $1+ million, an all-time high at the end of the first quarter of 2024 and a 43% increase from 2023. Another 376,275 IRA accounts amassed at least $1 million.
Workers increasingly realize retirement plans are paths to appreciable wealth. Most millionaires do not get rich overnight but start early and invest consistently. On average, they save about 14.2% of their pre-tax income annually to reach the maximum dollar amount allowable.
Besides a high savings rate, they take advantage of company matches and leave the money alone during good times and bad. Many now find it possible to reach $1 million, but experts believe a better benchmark now is $2 million before you retire.
This article was produced by Media Decision and syndicated by Wealth of Geeks.
A million ain’t what it used to be!
A million dollars is not what it was once worth. And there are more people today in the US than before. So this statistic means less than it appears.
Based on inflation alone, the number of millionaires should always be at an all time high.
How does this information help me put bread on my table?
And it seems like half of them live in Jackson, Boro Park, Flatbush, the 5 towns and Monsey.
A million dollars is no longer a lot of money. A school teacher ought to be worth a million just to have a secure retirement.
this sounds like a “good news” ad for the harris-walz campaign.
There is an important distinction between “America Leads in Wealth Creation” and “America Leads in Wealthy Creation.”
The middle class is getting crushed while money is increasingly concentrated by the wealthy.
Capitalism is good. Extreme income inequality is bad.
This is good news.
I an aware that million dollars is not worth what it was in 1990s. Nonetheless, this is remarkable and at the very least means we are doing well.