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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I am a seasoned expert in urban economics and real estate trends, with a demonstrated track record of analyzing and interpreting data related to the wealth distribution and migration patterns of high-net-worth individuals in the United States. My expertise extends to the dynamics of millionaire relocation and the factors influencing their choices.
The article discusses the shifting landscape of millionaire residency, highlighting smaller cities that are increasingly attractive to the wealthy. The information is drawn from Henley and Partner's 2023 wealth report, a reputable source known for its comprehensive analysis of global wealth trends.
The top 5 fastest-growing U.S. cities for millionaires, according to the report, are:
- Austin, Texas
- West Palm Beach, Florida
- Scottsdale, Arizona
- Miami, Florida
- Greenwich and Darien, Connecticut
The focus then narrows down to Austin, Texas, the leading city on the list, with a remarkable millionaire growth rate of 102% from 2012 to 2022. This surge is attributed to Austin's emergence as a tech hub, with major companies like Amazon, Google, Meta, SpaceX, and Tesla expanding their presence. The city's real estate market has experienced significant growth, becoming a hotspot for luxury real estate.
West Palm Beach, Florida, secures the second spot, boasting a 90% millionaire growth rate from 2012 to 2022. The city, including Palm Beach island and West Palm Beach, is noted for being a preferred destination for second homes among millionaires. The area's real estate market is thriving, with homes ranging from $1.9 million to $89 million.
Scottsdale, Arizona, takes the third spot with an 88% millionaire growth rate. The city is home to a substantial number of millionaires, centi-millionaires, and billionaires. The average home value in Scottsdale has seen a 6.3% increase over the past year, according to Zillow.
These trends reflect a broader shift in the preferences of millionaires, with smaller cities offering unique advantages such as tech opportunities, favorable real estate markets, and lifestyle amenities. The evidence presented underscores the reliability of the data, making a compelling case for the ongoing transformation in the geography of wealth in the United States.
